Supreme Court scrutinizes SHANTI Act compensation

The India — Supreme Court of India is reviewing the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025, which replaced the Civil Liability for Nuclear Damage Act of 2010. The Act permits private companies to operate civil nuclear power plants but caps their liability at Rs 3,000 crore in case of a nuclear accident. A group of petitioners led by former bureaucrat E. A. S. Sarma challenged the Act, arguing it violates fundamental rights under Articles 14, 19, and 21 of the Constitution. On August 17, 2026, a bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and V. K. Mohanan issued a limited notice to the India — India, asking whether courts are precluded from granting fair and just compensation under the Act. The court also sought clarification on potential conflicts of interest in appointing members to the India — Atomic Energy Regulatory Board (AERB), as the India — Atomic Energy Commission of India, which operates nuclear power stations, recommends members to the regulatory body. The court noted that Parliament passed the Act to incentivize investment, but petitioners argued it allows operators to cut corners on safety.