In a significant ruling impacting environmental regulations, the Supreme Court of India has upheld a notification issued by the Ministry of Environment, Forests and Climate Change (MoEFCC) while striking down a contentious clause that exempted certain large construction projects from obtaining prior environmental clearances. The decision, delivered on Tuesday, August 5, 2025, by a bench comprising Chief Justice B.R. Gavai and Justice K. Vinod Chandran, emphasizes the importance of balancing developmental activities with environmental protection and sustainable development.
The court's ruling pertains to the notification issued by the Environment Ministry on January 29, 2025. While upholding the core of the notification, the Supreme Court specifically struck down Clause 8(a) note 1, which provided exemptions to certain large building and construction projects from the mandatory requirement of obtaining prior environmental clearance. This exemption had applied to industrial sheds, schools, colleges, hostels, and other educational institutions. The court clarified that any construction activity exceeding 20,000 square meters, regardless of its nature (industrial, educational, or otherwise), would now be subject to the Environmental Impact Assessment (EIA) Notification of 2006.
The Supreme Court's decision was based on the principle of sustainable development, recognizing that natural resources are to be held in trust for future generations. While acknowledging the necessity of development for the country's progress, the court emphasized that environmental protection must be an integral part of the process. The bench observed that construction activities, even those related to educational or industrial purposes, inevitably have an environmental impact when carried out on a large scale. Exempting such projects from environmental scrutiny would be arbitrary and contrary to the objectives of the Environment Protection Act.
The ruling came in response to a petition filed by Vanashakti, an NGO, which challenged the January 29 notification and a subsequent office memorandum. Vanashakti argued that the exemption granted to industrial and educational buildings diluted the EIA framework of 2006 without any scientific basis or justification. The petition also raised concerns about large-scale construction projects potentially escaping mandatory environmental checks, particularly in ecologically sensitive zones and polluted areas. The Supreme Court, in its judgment, partly accepted the NGO's challenge, emphasizing the need for a balanced approach between development and environmental preservation.
The court rejected the argument that guidelines ensuring environmental safeguards were sufficient for exempting certain projects. It noted the absence of a proper mechanism for impact assessment by an expert body such as the State Environment Impact Assessment Authority (SEIAA). The EIA Notification of 2006 categorizes projects into Category A and B, with Category B projects requiring clearance from SEIAAs and Category A projects requiring clearance from the Central Government.
This is not the first time the Supreme Court has addressed the issue of environmental clearances and project development. In May 2025, the court struck down a 2017 notification and a 2021 office memorandum that allowed for ex-post facto clearances, i.e., granting environmental approvals to projects after work had already commenced. The court had deemed such clearances illegal and detrimental to the environment.
The Supreme Court's recent decision reinforces the significance of prior environmental impact assessments for large-scale projects. By removing the exemption for certain construction projects, the court has ensured that environmental concerns are duly considered before these projects commence, promoting sustainable development and safeguarding the environment for future generations. The ruling also underscores the judiciary's role in upholding environmental regulations and holding the government accountable for protecting the country's natural resources.
