The verdict of the Loss of Ecology Authority (LEA) constituted to assess the pollution damage caused by tanneries in Tamil Nadu and determine the compensation to the victims of water pollution attracted popular criticism. This article provides academic criticism of the LEA's verdict highlighting how the body failed to incorporate the theoretical and methodological issues of damage assessment as such. The major conclusion is that unless the damage assessment exercise adheres to certain academic principles, the underlying objective of institutional intervention in issues relating to pollution and compensation will not be achieved adequately.