Supreme Court's Decision on Retroactive Environmental Clearances Reserved

The Supreme Court has reserved its verdict on petitions related to granting retrospective environmental clearances to projects that breached environmental regulations. A bench led by Chief Justice Surya Kant alongside Justices Joymalya Bagchi and Vipul M Pancholi listened to arguments from multiple advocates, including Additional Solicitor General Aishwarya Bhati representing the Centre.

The court is revisiting its Vanashakti decision, following a previous 2025 ruling prohibiting the Centre from granting ex post facto clearances. This prohibition aimed to uphold environmental laws but was later stayed to avoid rendering significant public investment futile.

On November 18, a majority decision by a three-judge bench, previously chaired by then Chief Justice of India B R Gavai, overturned the earlier restriction. The court recognized the economic impact, noting that reversing the 2025 decision could squander Rs 20,000 crore of public funds dedicated to crucial infrastructure projects. A new hearing on the matter has been arranged.