Srinagar, Sept. 21 -- Srinagar- At Panzan in Budgam, the Shaliganga stream became the setting for a legal fight over riverbed mining, environmental safeguards and the cost of restoring a damaged waterway.

Now, more than seven months after Jammu and Kashmir imposed a Rs 3.10 crore environmental compensation on the construction company involved, the bill has grown to Rs 12.30 crore under the government's application of the Polluter Pays Principle.

The government told the Jammu and Kashmir Legislative Assembly on Monday that it had asked the National Highways Authority of India to withhold and recover the compensation from pending bills payable to NKC Projects Pvt. Ltd.

The disclosure came in a written reply to a starred question from Ali...