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2025 Supreme(SC) 1943

SUPREME COURT OF INDIA
B.R. GAVAI, CJI, UJJAL BHUYAN, K. VINOD CHANDRAN, JJ.
Confederation of Real Estate Developers of India (CREDAI) – Appellant
Versus
Vanashakti and Another – Respondents
Review Petition (C) No. 3002 of 2025, Diary No. 41929 of 2025, Writ Petition (C) No. 1394 of 2023
Decided On : 18-11-2025

The requirement for prior environmental clearance is non-negotiable under the Environment Protection Act, and ex post facto clearances contradict fundamental environmental jurisprudence, emphasizing the need for protection from environmental degradation.

Headnote:(A) Environment (Protection) Act, 1986 - Sections 3, 15, and 19 - Environment Impact Assessment Notification, 2006 - Notification dated 14.03.2017 and Office Memorandum dated 07.07.2021 declared invalid and illegal as allowing ex post facto environmental clearances contravenes environmental jurisprudence. It was emphasized that prior environmental clearance is necessary and that the concept of ex post facto clearance is completely at odds with the obligations under the Act. The Review Petition was allowed as it was established that the earlier judgment had not considered binding precedents and the significant public consequences of strict adherence to the invalid notifications. (Paras 5, 18, 19, 38, 48, 50)

(B) Judicial Review - The court's decision to recall its prior judgment was based on the necessity to uphold environmental law and prevent public hardship as the original ruling could lead to the demolition of vital public infrastructure constructed under invalid notifications. It was found to conflict with core principles of sustainable development and environmental protection. (Paras 141, 155)

Judgement Key Points

This legal document pertains to a significant judgment by the Supreme Court of India concerning environmental law, specifically the requirement for prior environmental clearance (EC) under the Environment Protection Act. The Court emphasizes that ex post facto or retrospective ECs are fundamentally incompatible with environmental jurisprudence, which mandates that projects obtain clearance before commencement to prevent environmental degradation.

The Court scrutinizes various notifications and office memoranda issued by the Ministry of Environment, Forest and Climate Change, including the 2006, 2017, and 2021 regulations, as well as related judicial orders and procedural guidelines. It highlights that these regulations, especially those permitting ex post facto clearances, are either invalid or contrary to the statutory and constitutional principles of environmental protection.

The Court discusses the evolution of environmental jurisprudence, reaffirming that environmental laws are rooted in the precautionary principle, the polluter pays principle, and the principle of sustainable development. It underscores that allowing retrospective ECs undermines these principles, potentially leading to irreversible ecological harm.

The judgment also addresses the implications of the earlier legal positions, noting that certain judgments and notifications were not properly considered or were rendered in ignorance of binding legal principles, thus being per incuriam and not binding as precedents. It stresses that judicial discipline and adherence to established jurisprudence are crucial for maintaining consistency and credibility.

Furthermore, the Court recognizes the practical and economic hardships faced by project proponents due to the strict stance on prior EC, especially where projects have been completed or are near completion based on earlier relaxations or legal ambiguities. It advocates a balanced approach that considers environmental protection alongside economic and public interests, emphasizing that projects otherwise permissible in law should not be unduly penalized or demolished unless legally required.

In conclusion, the Court allows a review petition to recall a previous judgment, emphasizing the importance of following the correct legal principles and precedents. It underscores that environmental regulation must be progressive and non-retrogressive, aligning with international commitments and constitutional mandates, and that any relaxation of legal requirements must be justified within the framework of law and environmental sustainability.


Table of Content
1. introduction to the review petition. (Para 1 , 2 , 3 , 4)
2. background of relevant environmental notifications. (Para 5 , 6 , 9)
3. context of prior judicial decisions influencing current judgments. (Para 10 , 11 , 12)
4. parties' arguments regarding environmental compliance. (Para 17 , 20 , 21)
5. court's analysis on the requirement of prior environmental clearance. (Para 27 , 28 , 30 , 31 , 38)
6. establishment of the principle regarding ex post facto environmental clearances. (Para 41 , 42 , 46 , 48)
7. final decision on review petition. (Para 141 , 142 , 143)

JUDGMENT :

B.R. GAVAI, CJI.

INDEX

I.

INTRODUCTION

II.

SUBMISSIONS

III.

DISCUSSION AND ANALYSIS

a. Common Cause Vs. Union of India and Others

b. Alembic Pharmaceuticals Limited Vs. Rohit Prajapati and Others

c. Electrosteel Steels Limited Vs. Union of India and Others

d. D. Swamy Vs. Karnataka State Pollution Control Board and Others

e. Pahwa Plastics Private Limited and Another vs. Dastak NGO and Others

f. Judicial Discipline and Judicial Propriety

g. Effect of JUR

h. Municipal Corporation of Greater Mumbai and Others vs. Pankaj Babulal Kotecha and Others

i. Bindu Kapurea vs. Subhashish Panda and Others

IV.

CONCLUSION

I. INTRODUCTION

1. By way of the present review petition, the petitioner seeks recall of the judgment and final order dated 16th May 2025 passed by this Court in the case of Vanashakti vs. Union of India , 2025 SCC Online SC 1139 (Hereinafter “JUR”)

2. Though certain other review petitions, including the one filed by the Union of India, and various Interlocutory Applications (IAs) for modification/clarification of JUR are pending, it was decided that the lead review petition i.e. the present one would be heard first and that after the outcome of this review petition, rest of the applications would be considered. We have, however, also heard learned counsel for the other review petitioners and the learned counsel for those who have filed applications for modification/clarification of the JUR.

3. Vide JUR, this Court has directed thus:

    “35. We are, however, conscious of the fact that ex post facto EC may have been granted in certain cases both under the 2017 notification and the 2021 OM. ECs already granted under 2017 notification and the 2021 OM, at this stage, should not be disturbed.

    36. Hence, we pass the following order:

    (a) We hold that the 2017 notification and the 2021 OM as well as all circulars/orders/OMs/notifications issued for giving effect to these notifications are illegal and are hereby struck down;

    (b) We restrain the Central Government from issuing circulars/orders/OMs/notifications providing for grant of ex post facto EC in any form or manner or for regularising the acts done in contravention of the EIA notification;

    (c) We clarify that the ECs already granted till date under the 2017 notification and the 2021 OM shall, however, remain unaffected.”

4. The facts giving rise to the present review petition are as under.

5. In pursuance of the powers conferred by sub-section (1) and clause (v) of sub-section (2) of Section 3 of the Environment (Protection) Act, 19861 [Hereinafter, “EP Act”] read with clause (d) of sub-rule (3) of Rule 5 of the Environment (Protection) Rules, 19862 [Hereinafter “EP Rules”] the Central Government through the erstwhile Ministry of Environment and Forest (now the Ministry of Environment, Forest and Climate Change3 [Hereinafter “MoEF&CC”]) issued a notification dated 14th September 2006 being the Environment Impact Assessment Notification 2006.4 [Hereinafter “2006 Notification”] Vide the said notification, it was provided that the regulatory authority in respect of the matters falling under Category ‘A’ would be MoEF&CC and in respect of the matters falling under Category ‘B’ the State Government through the State Environment Impact Assessment Authority5 [Hereinafter “SEIAA”] would be the regulatory authority. In the Schedule to the 20

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