The Supreme Court of India reviewed and reversed its earlier stand that retrospective environmental clearances (ECs) are illegal. The verdict, delivered in CREDAI vs Vanashakti, has revived debate on weakening India’s environmental safeguards.
What is Environmental Clearance
Environmental Clearance (EC) is prior government permission required before starting certain projects like mines, industries or infrastructure.
- Objective: prevent environmental damage before it occurs.
- Based on scientific studies and public consultation.
- Central to India’s Environment Impact Assessment (EIA) system.
What Did the Court Earlier Decide?
In May 2025, the Court had ruled that:
- Ex post facto (after-the-fact) clearances are illegal.
- Damage must be assessed before a project begins, not after.
- Law should discourage violations, not reward them.
- This decision was widely praised for protecting environmental rights.
What Has Changed Now?
- On November 18, 2025, a 2:1 bench reversed that verdict.
- The Court held that:
- Retrospective ECs may serve public interest.
- Shutting down completed projects may harm economic welfare.
Legal Issues Involved
- Circular Reasoning: Projects break the law by starting without EC. Court allows permission because they already exist. This rewards illegal behaviour.
- Dilution of Preventive Mechanism: EIA is meant to stop harm before it happens. Backdated approval defeats this purpose.
- The Ministry of Environment: 2017 notification: one-time window for illegal projects to apply. 2021 memo: extended benefit even to late applicants.
Impact on Environmental Governance
- Weakening of Regulation: Industries may ignore law, expecting later approval. Penalties replace accountability.
- Erosion of Public Trust: People lose faith in rule-based governance. Environmental laws appear negotiable.
- Risk to Future Generations: Ignores intergenerational justice. Increases climate vulnerability.
Environmental Impact Assessment (EIA)
Environmental Impact Assessment (EIA) is a legal process used to study the environmental effects of a project before it is approved.
- The EIA process is mainly governed by the EIA Notification, 2006, issued by the Ministry of Environment, Forest and Climate Change.
- It ensures that development does not harm nature, people, or health.
Objectives of EIA
- Detect environmental damage early
- Protect forests, rivers and wildlife
- Reduce pollution
- Involve local people in decisions
- Promote sustainable development
Steps
- Screening & Scoping prevent wasting time on unnecessary studies.
- Impact Assessment & Mitigation protect ecosystems and communities.
- Reporting & Review ensure transparency and accountability.
- Monitoring keeps projects in check even after approval.
Conclusion
The review judgment shifts focus from principle to convenience. It endangers environmental protection, weakens law enforcement, and creates unsafe precedents. As climate risks rise, India needs stronger—not diluted—regulatory frameworks.
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