In INDIAN COUNCIL FOR ENVIRO-LEGAL ACTION v. UNION OF INDIA, (1996) 3 SCC 212 (BICHHRI village case), the Supreme Court:

1. In ICELA v. UoI (Bichhri case, 1996), the Supreme Court addressed pollution by chemical industries in Bichhri village, Rajasthan, where untreated effluents had contaminated soil and groundwater. 2. The Court applied the POLLUTER PAYS PRINCIPLE and directed: (i) the polluting industries to bear the cost of remedial measures; (ii) the cost of restoration of the environment to original state; (iii) compensation to victims for damage. 3. The Court explicitly held that 'the polluter is liable to pay the costs of restoration of the affected area and to pay compensation to those who suffered.' 4. Hence option B is correct. _Source: EPA 1986 / Constitution of India / Stockholm/Rio/Paris / Indian SC environmental jurisprudence — Indian Council for Enviro-Legal Action v. Union of India, (1996) 3 SCC 212 (Bichhri case)_