The study „penalty to pollutant Act: A sustainable solution to reduce extreme pollution‟ has been carried out after the successful and effective presentation of two research „Fine Kathmandu Act: A sustainable solution to reduce extreme pollution‟ in Kathmandu, Nepal and „Fine Delhi Act: A sustainable solution to reduce extreme pollution‟ in New Delhi, India respectively in 2016 and 2017 AD. Those studies propose easiest, scientific and effective solution to reduce the pollution of cities completely and to cure various multi-sartorial effect of pollution. The way study suggests is, charging the pollutants of cities by cash and distribution of collected cash making an effective, transparent and responsible fund to affected innocent people directly through making an act (Bill). By reviewing the Cause of pollution in two extremely polluted cities, study has proposed to develop „penalty to pollutant act‟. Study has also discussed who should be punished, penalty areas, affected areas by the pollution, for whom should be reimbursed and how to go ahead. Through descriptive analytical method and textual analysis, study suggests that, the only one justice to the innocent people who are neither in city nor pollutants is punishing the real pollutants by cash. Study focused on the cash back to affected people instead of their insurance on health, education, job and many more. Pollutants are divided in two parts: Service pollutants: these are all pollutants relating to the service business that buy and use the product of other companies, modify them and serve them to their clients or guests. These are Hospitals, Hotels restaurants, Resorts, transportation companies, Airlines & etc.

Product pollutants : These are all pollutants who produce first hand products including machines or engines who produce temperature increasing gases like carbon monoxide, wooden materials like furniture, household materials, Construction materials, packaged food products, chemicals used in laboratories, explosive materials used in military exercise, radioactive materials etc. Both of these pollution use to occur through below mentioned types of business institutions:

• National companies and their products or services.

• Local companies and their products or services.

The Study suggests governments should make an effective and non biasing Law (Act) to charge (punish) the pollutants like above mentioned. This act should regulated by a special commission that specially works for punishing the pollutants, collecting the cash, develop plans and missions, distribution of collected cash to the affected people as compensation. This compensation is for regular health treatment of pollution affected people, for the compensation of reduced production of herbs, crops and other products from farming. The special commission shouldn‟t lead by government officials or other candidates. It should lead by the nomination from pollution affected people. Study also suggests regulation of collected cash should conduct only by commission, not by government for any other developmental projects or for budget.

Multinational companies and their products or services.

Keywords: Penalty, Act, Bill, Sustainable Solution, Extreme Pollution, pollutants.