The 'POLLUTER PAYS PRINCIPLE' adopted by the Indian Supreme Court in INDIAN COUNCIL FOR ENVIRO-LEGAL ACTION v. UoI (Bichhri case), (1996) 3 SCC 212, holds that the absolute liability for harm to the environment extends:

1. In ICELA v. UoI (Bichhri case, 1996), the Supreme Court held: 'Once the activity carried on is hazardous or inherently dangerous, the person carrying on such activity is liable to make good the loss caused to any other person by his activity irrespective of the fact whether he took reasonable care while carrying on his activity... The polluter pays principle as interpreted by this Court means that the absolute liability for harm to the environment extends not only to compensate the victims of pollution but also the cost of restoring the environmental degradation.' 2. Cost of restoration includes: (i) closure of polluting industries; (ii) removal of waste; (iii) restoration of soil and groundwater; (iv) compensation to affected persons. 3. 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 (Bichhri Case), (1996) 3 SCC 212_