November 21, 2025

Quick Overview

The Supreme Court has recalled its 2025 Vanashakti judgment that prohibited retrospective (ex post facto) Environmental Clearances (ECs). The Court stated that continuing the earlier ruling could harm public investment and development. The issue is now referred to a larger Bench due to conflicting precedents, raising key questions on balancing environmental protection with developmental needs.


Why in News?

The Supreme Court of India, in a 2:1 ruling, has recalled its 2025 Vanashakti judgment that banned retrospective (ex post facto) Environmental Clearances (ECs). The Court warned that continuing the earlier ruling would lead to “devastating” consequences for public infrastructure and investments worth thousands of crores.

The original judgment had argued that retrospective ECs encouraged rule violations and weakened environmental protection.


Ex Post Facto Environmental Clearances — Meaning & Legal Background

What Are They?

  • Approvals granted after a project begins construction or operations without the required prior EC.

  • Intended only for exceptional cases, but often used to regularize violations.

Legal Framework

  • Governed by the Environment (Protection) Act, 1986.

  • EIA Notifications 1994 & 2006 require prior clearance, making retrospective approvals legally contentious.

The Vanashakti (2025) Judgment

  • Struck down the 2017 notification and 2021 MoEFCC Office Memorandum allowing retrospective ECs.

  • Called ex post facto ECs “grossly illegal”, violating the precautionary principle.

  • Prevented the government from issuing any future notifications allowing such clearances.


Why Did the Supreme Court Recall Its Own Judgment?

1. Need for a Larger Bench

The Court held that the Vanashakti ruling ignored prior judgments such as:

  • D. Swamy (2021) → Allowed retrospective ECs in exceptional circumstances.

  • Alembic Pharmaceuticals (2020) → Criticized but still regularized violations with monetary penalties.

Due to these conflicts, the issue needs a larger Bench review.

2. Principle of Proportionality

Strict prior-approval rules should not:

  • Block essential public projects

  • Cause excessive demolition

  • Jeopardize major investments

Existing penalties and monitoring can prevent misuse.

3. Developmental Realities

Several projects began without EC due to:

  • Administrative delays

  • Ambiguities in procedure

  • Lack of clarity at the state level

Retrospective ECs can bring such projects into compliance, provided they remain rare and heavily penalized.

Dissenting View

Justice Ujjal Bhuyan warned that allowing retrospective ECs:

  • Dilutes the precautionary principle

  • Rewards violators

  • Undermines Article 21 (right to a clean environment)

However, the majority judgment prevailed.


SC’s Power to Review Judgments — Article 137

  • The Supreme Court may review its own judgment to correct errors or prevent injustice.

  • A curative petition (post-review remedy) is allowed only in rare cases involving procedural injustice, as defined in Rupa Ashok Hurra (2002).

Environmental Clearance (EC) in India — Explained

What is EC?

A mandatory approval ensuring that proposed projects do not damage the environment.

Projects Needing EC

  • Any project in ecological sensitive zones

  • 39 activities classified under Category A (MoEFCC) or Category B (SEIAA)

How the EC Process Works

  1. EIA study

  2. Public hearing

  3. Expert appraisal

  4. Final decision within 120 days

  5. Valid for five years

Concerns

  • Public hearings often symbolic, not meaningful

  • Local concerns frequently ignored

  • Exemptions have weakened EIA oversight

Balancing Development and Environmental Protection — The Way Forward

1. Strengthen Compliance

  • Strict EIAs, scientific reviews, and transparent consultations.

2. Leverage Technology

  • Satellite monitoring

  • PARIVESH dashboard

  • GIS-based Violations Portal

3. Polluter-Pays + Restoration

  • Strong monetary penalties

  • CAMPA funds

  • Ecological restoration mandates

4. Promote Sustainable Infrastructure

  • Renewable energy

  • Green mobility

  • Low-carbon construction

5. Empower Communities

  • Stronger Gram Sabha role

  • FRA consultations

  • Transparent public hearing reforms

CLAT / UPSC Exam Relevance Summary

  • Relevant for UPSC GS Paper 2 & 3 → Judicial review, environmental governance, precautionary principle, polluter-pays principle.

  • Relevant for CLAT Legal Reasoning → Powers of the Supreme Court (Article 137), environmental law principles, validity of retrospective legal approvals, judicial precedents, proportionality.

  • Good for Essay / Mains → Balancing environment and development, role of judiciary in sustainable governance.


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