New Delhi, Aug. 22 -- The Supreme Court on Friday allowed an appeal filed by Vyakti Vikas Kendra, associated with the Art of Living Foundation, and set aside the Rs 5 crore environmental compensation imposed on it over the organisation's 2016 event on the Yamuna floodplain in Delhi.

A bench of Justices Satish Chandra Sharma and N. Kotiswar Singh held that a person can be held absolutely liable only when a direct link is established between the alleged act and the environmental damage. In the present case, the Court found no direct evidence linking the Art of Living event to the damage to the floodplain.

The Court also noted that the National Green Tribunal had denied the appellant an adequate opportunity to argue its case and had overlo...