Retrospective Environmental Clearances After the 3-Judge Bench Recall of the Vanashakti judgment: India’s Unresolved Constitutionality Vacuum

Introduction

India’s environmental clearance architecture has, for decades, rested on a simple but inviolable premise: that the environment must be assessed before a project begins, not after it has already caused damage. This premise, sitting at the heart of the Environment (Protection) Act, 1986 [1] and the Environment Impact Assessment Notification, 2006 [2], was shaken dramatically in 2025 through a sequence of events that exposed deep fault lines within India’s Supreme Court on one of the most consequential questions in environmental governance — can a project obtain legal sanction after the fact, after land has been broken and concrete poured, for what was originally an unlawful commencement?

The legal controversy now before the Supreme Court — arising from the saga of Vanashakti v. Union of India and its extraordinary reversal — is not merely a procedural dispute about review jurisdiction. It is a constitutionality vacuum: a space where the fundamental right to a clean environment under Article 21, the precautionary principle, sustainable development, and the rule of law all collide with the practical pressures of public infrastructure, economic investment, and the irreversibility of completed construction. How the Supreme Court ultimately resolves this tension, on a reference now awaiting hearing by a larger bench, will define the contours of environmental governance in India for a generation.

The Legal Framework Governing Retrospective Environmental Clearances

Any analysis of the retrospective environmental clearances controversy must begin with the statutory architecture that governs environmental approvals. The Environment (Protection) Act, 1986 [1] is the parent statute. Enacted under Article 253 of the Constitution to give effect to decisions taken at the Stockholm Conference of 1972, Section 3(1) of the Act confers on the Central Government the power to take “all such measures as it deems necessary or expedient for the purpose of protecting and improving the quality of the environment and preventing, controlling and abating environmental pollution.” Section 3(2)(v) specifically empowers the Central Government to impose restrictions on the location of industries and the carrying on of any industrial process or operation.

Under this authority, the Central Government issued the Environment Impact Assessment Notification, 2006 [2], issued as S.O. 1533(E) on 14 September 2006, which superseded the earlier EIA Notification of 27 January 1994. The 2006 notification states expressly: “the required construction of new projects or activities or the expansion or modernization of existing projects or activities listed in the Schedule to this notification entailing capacity addition with change in process and or technology shall be undertaken in any part of India only after the prior environmental clearance from the Central Government or as the case may be, by the State Level Environment Impact Assessment Authority.” The phrase “only after” is not a directory condition — it is a mandatory precondition to any construction or commencement of activity. The clearance process under the 2006 notification proceeds through four sequential stages: screening, scoping, public consultation including a public hearing at the project site, and appraisal by an Expert Appraisal Committee (EAC) or State-Level Expert Appraisal Committee (SEAC) before a clearance can be granted or refused.

It is within this framework that the controversy around retrospective clearances — also described as ex post facto ECs — must be situated. A retrospective or ex post facto environmental clearance is one granted after a project has already commenced, expanded, or been completed — that is, after the very harm that the EC process was designed to prevent has already been risked or caused. The critical legal question is whether such clearances are permissible at all under Indian law, and if so, under what conditions and constitutional constraints.

The 2017 Notification and the 2021 Office Memorandum

The Ministry of Environment, Forest and Climate Change (MoEF&CC) issued a Notification on 14 March 2017 [3] that created a one-time amnesty window for project proponents who had commenced, continued, or completed activities without the mandatory prior environmental clearance. The 2017 notification provided a six-month window — later briefly extended through judicial direction to 13 April 2018 — during which defaulters could apply for an EC and, upon paying prescribed penalties and demonstrating compliance, have their projects regularised. Earlier attempts by MoEF&CC through Office Memoranda of December 2012 and June 2013 to create similar mechanisms had been struck down by the High Court of Jharkhand and the National Green Tribunal, which held those instruments to be illegal and outside the scope of the 2006 notification.

The 2017 notification was itself under judicial challenge when the MoEF&CC issued a further Standard Operating Procedure (SOP), styled as an Office Memorandum, on 7 July 2021. This 2021 OM, which had been directed by the National Green Tribunal in Tanaji B. Gambhire v. Chief Secretary, Government of Maharashtra, built on a polluter-pays and proportionality framework, imposing penalties on violators and prescribing a regularisation process. Environmental groups, including the petitioner Vanashakti — an NGO based in Mumbai — argued that the 2021 OM was nothing more than a fresh attempt to breathe life into the invalidated 2017 mechanism, now clothed in different language. MoEF&CC’s own position was that the 2021 OM did not create new retrospective environmental clearances but merely provided a compliance framework for penalising existing violators. The Madras High Court, in a judgment dated 30 August 2024, quashed the 2021 OM in proceedings challenging it separately, an order that was itself then challenged before the Supreme Court.

The Vanashakti Judgment of May 2025: A Line Drawn

On 16 May 2025, a two-judge bench of the Supreme Court consisting of Justice Abhay S. Oka and Justice Ujjal Bhuyan delivered what appeared to be a definitive judgment in Vanashakti v. Union of India, 2025 SCC OnLine SC 1139 (also cited as 2025 INSC 718) [4]. The bench struck down both the 2017 notification and the 2021 OM with unambiguous clarity. The court held that the concept of an ex post facto or retrospective environmental clearance is “completely alien to environmental jurisprudence,” relying expressly on the language first articulated in Common Cause v. Union of India, (2017) 9 SCC 499, and reiterated in Alembic Pharmaceuticals Ltd. v. Rohit Prajapati, (2020) 17 SCC 157 [5].

The Vanashakti court reasoned that the entire EIA process — screening, scoping, public hearing, appraisal — exists to evaluate prospective harm and to allow stakeholders, including affected communities, to participate meaningfully before environmental damage occurs. A clearance granted after a project has commenced cannot serve any of these purposes; the environmental assessment becomes, at best, a post-mortem rather than a prevention. As the court stated, drawing on Alembic Pharmaceuticals: “environment law cannot countenance the notion of an ex post facto clearance. This would be contrary to both the precautionary principle as well as the need for sustainable development.” The court further held that the right to live in a pollution-free environment guaranteed under Article 21 of the Constitution, and the fundamental duty to protect the natural environment under Article 51A(g), imposed an obligation on the state not to create or perpetuate mechanisms that incentivised regulatory evasion.

The judgment issued consequential directions: MoEF&CC was restrained from issuing any future circulars, orders, or notifications providing for Retrospective Environmental Clearances in any form; regulatory authorities were directed to initiate closure and demolition proceedings against unlawful projects under Section 5 of the Environment (Protection) Act, 1986; and penal action under Section 15 read with Section 19 of the same Act was directed against violations. Notably, ex post facto ECs already granted under the 2017 notification were protected and left undisturbed by the judgment.

The Per Incuriam Recall: The Three-Judge Bench’s Verdict of November 2025

The judgment of May 2025 faced immediate and substantial resistance. Developers, industry associations, state governments, and public sector undertakings filed nearly 40 review petitions. The lead petition was filed by the Confederation of Real Estate Developers of India (CREDAI), and the matter was titled Confederation of Real Estate Developers of India (CREDAI) v. Vanashakti, 2025 SCC OnLine SC 2474, 2025 INSC 1326 [6].

On 18 November 2025, a three-judge bench led by Chief Justice B.R. Gavai, alongside Justice K. Vinod Chandran and Justice Ujjal Bhuyan — who had himself co-authored the original Vanashakti verdict — delivered three separate opinions. By a 2:1 majority, Chief Justice Gavai and Justice Chandran recalled the May 2025 judgment and restored the original writ petitions for fresh hearing by an appropriate bench. Justice Bhuyan, in a 97-page dissent, dismissed all review petitions and reaffirmed the May judgment in its entirety.

The majority’s central reasoning was that the Vanashakti judgment was per incuriam — rendered in ignorance of binding coordinate bench decisions that had already upheld Retrospective Environmental Clearances frameworks in limited circumstances. The majority specifically pointed to Electrosteel Steels Limited v. Union of India, (2021) SCC OnLine SC 1247, D. Swamy v. Karnataka State Pollution Control Board, (2023) 20 SCC 469, and Pahwa Plastics Pvt. Ltd. v. Dastak NGO, (2023) 12 SCC 774, all benches of equal or comparable strength that had, in specific factual contexts, countenanced post facto EC. The majority also cited Common Cause v. Union of India, (2017) 9 SCC 499 to note that the Court had there permitted mining leaseholders to resume operations subject to compliance, effectively allowing a limited form of retrospective regularisation.

Chief Justice Gavai catalogued the concrete consequences of the May ruling in detail: central government projects worth ₹8,293 crore across 24 projects and state government projects worth ₹11,168 crore across 29 projects had been stalled — a total approaching ₹20,000 crore. The listed examples included a 962-bed AIIMS hospital in Odisha, the Vijayanagar Greenfield Airport in Karnataka, and Common Effluent Treatment Plants whose own demolition would cause further environmental harm. The CJI wrote: “If the Judgment Under Review is not recalled, it will have serious consequences in terms of demolition of projects which are either completed or about to be completed in the near future and which are of vital public importance constructed out of the public exchequer.” He further argued that demolishing and then rebuilding these projects after fresh EC would itself generate greater pollution than permitting their continuation under penalty.

Justice Bhuyan’s Dissent: The Constitutional Conscience of the Court

Justice Bhuyan’s dissent is remarkable for its doctrinal rigour and its refusal to subordinate constitutional principle to economic pragmatism. He categorically rejected both the per incuriam characterisation and the public interest reasoning offered by the majority. On the per incuriam question, Justice Bhuyan held that none of the coordinate bench decisions cited by the majority — Electrosteel, D. Swamy, or Pahwa Plastics — had expressly overruled or even deliberately departed from the core principle articulated in Common Cause and Alembic Pharmaceuticals. Those cases dealt with peculiar factual situations where regularisation was permitted in extreme circumstances under Article 142 jurisdiction, and their reasoning could not be read as establishing a general principle permitting ex post facto ECs as a routine remedial mechanism.

Justice Bhuyan described the very concept of ex post facto EC as “an anathema, a curse devoted to evil, to environmental jurisprudence.” He wrote: “Precautionary principle is the cornerstone of environmental jurisprudence. Polluter pays is only a principle of reparation. Precautionary principle cannot be given a short shrift by relying on the polluter pays principle. The review judgment is a step in retrogression.” He noted pointedly that MoEF&CC itself had not filed any review petition against the Vanashakti judgment — effectively accepting it — and questioned why the reviewing bench appeared to be, in his words, “so keen, virtually prodding the Central Government or the MoEF&CC to grant Retrospective Environmental Clearances to all the law violators.” Invoking the deadly Delhi smog as a reminder of the stakes, he emphasised that the Supreme Court as the highest constitutional court had a duty under the Constitution and under Indian environmental law to safeguard the environment and could not be seen to be “backtracking on the sound environmental jurisprudence that has evolved in this country, that too, on a review petition filed by persons who have shown scant regard for the rule of law.”

The Constitutional Vacuum: What Remains Unresolved

The recall of the Vanashakti judgment and the referral of the original petitions for fresh hearing by a larger bench has created a genuine constitutionality vacuum in Indian environmental law [7]. The 2017 notification and the 2021 OM — struck down by a two-judge bench in May 2025 — have had their striking-down itself recalled by a three-judge bench in November 2025. This places both instruments in legal limbo: neither definitively valid nor definitively invalid, pending a larger bench adjudication.

The question for the larger bench involves several distinct constitutional threads that are not easily reconcilable. The first is whether the fundamental right to a pollution-free environment under Article 21 imposes an absolute bar on retrospective clearances, or whether that right can be balanced against competing claims of economic development and public infrastructure. The second is whether the executive’s power under Section 3 of the Environment (Protection) Act, 1986 extends to creating regularisation mechanisms for past violations, or whether such mechanisms are an impermissible dilution of mandatory statutory safeguards. The third — and perhaps most critical — is whether the per incuriam doctrine was correctly invoked: were the coordinate bench decisions in Electrosteel, D. Swamy, and Pahwa Plastics genuinely binding precedents that were overlooked, or were they factually distinct applications of an agreed general principle, as Justice Bhuyan maintained?

The constitutional stakes are heightened by the question of intergenerational equity, a value the Supreme Court has recognised as embedded within both Article 21 and Article 51A(g). Retrospective clearances, by their nature, eliminate the ex ante deliberation — public hearing, expert appraisal, community consultation — that embodies this intergenerational protection. When a project is assessed after it has already been built, there is no opportunity to prevent harm; there is only the possibility of managing or compensating harm that has already occurred. Whether the Indian constitutional framework can accommodate this fundamentally different exercise in place of the forward-looking precautionary assessment is the question the larger bench must answer.

The Jairam Ramesh Petition and the Court’s Current Posture

The constitutional uncertainty was further underscored in February 2026 when former Union Minister Jairam Ramesh filed a writ petition directly challenging the November 2025 recall order. A bench presided over by Chief Justice Surya Kant dismissed the petition on procedural grounds, observing that the correct remedy was a review petition, not a fresh writ petition challenging the apex court’s own judgment [8]. The Court’s statement that the petition appeared aimed “more at attracting public attention than addressing a legal grievance” reflects something of the institutional frustration with the cycling of this litigation, even as the substantive constitutional question remains entirely open.

Implications for Environmental Governance and the Rule of Law

The broader implications of this unresolved controversy extend far beyond the specific projects at stake. As reporting by Down to Earth has noted, the recall risks making prior environmental clearance effectively optional — something developers aim for in good faith but know they can seek to avoid through regularisation if they proceed without it [9]. If the ex post facto pathway is reliably available, even if costly, the deterrent value of the EIA framework is fundamentally compromised. The signal received by the market, whatever the legal niceties, is that commencing a project without clearance and seeking retrospective regularisation later remains a viable — even rational — commercial strategy.

This concern is not abstract. Before the Supreme Court, reports placed before the bench indicated that MoEF&CC had, under the 2017 and 2021 mechanisms, already granted post facto clearance to over 100 projects and issued Terms of Reference for at least 150 more, including coal and iron mines and large factories. The scale of the violation-regularisation cycle in operation before the Vanashakti judgment is itself evidence of systemic regulatory failure that a constitutionally sound framework must address rather than accommodate. The larger bench’s eventual resolution of this question will also have implications for India’s obligations under multilateral environmental agreements and for the National Green Tribunal’s jurisdiction to enforce prior EC requirements against violators.

Conclusion

The recall of the Vanashakti judgment in November 2025 has left India’s environmental clearance jurisprudence in an unprecedented state of legal suspension. The constitutionality of retrospective or ex post facto environmental clearances — a question the two-judge bench answered clearly in the negative — remains formally open, awaiting adjudication by a larger bench. The tension at the heart of this dispute, between the precautionary principle and the economic consequences of rigorous compliance, is real and cannot be dismissed. But the manner of its resolution will determine whether India’s constitutional commitment to a clean environment retains genuine, substantive force, or can be diluted whenever the economic stakes are deemed high enough. The larger bench’s eventual judgment will, in a very real sense, define what kind of environmental rule of law India chooses to maintain — and what that choice will cost in irreversible ecological terms.

References

[1] Environment (Protection) Act, 1986, Ministry of Environment and Forests, Government of India. Available at: https://cpcb.nic.in/uploads/Projects/Bio-Medical-Waste/THE_ENVIRONMENT_(PROTECTION)_ACT1986.pdf

[2] Environment Impact Assessment Notification, 2006, S.O. 1533(E), 14 September 2006, MoEF&CC. Available at: https://environmentclearance.nic.in/writereaddata/EIA_notifications/2006_09_14_EIA.pdf

[3] Trilegal overview of the 2017 ex post facto EC notification and its legal history. Available at: https://trilegal.com/magazine/obtaining-environmental-clearance-in-india-comprehensive-overview-insights-issue-14.html

[4] Vanashakti v. Union of India, 2025 SCC OnLine SC 1139 / 2025 INSC 718, decided 16 May 2025 (Justices A.S. Oka and U. Bhuyan). Available at: https://indiankanoon.org/doc/44390976/

[5] Alembic Pharmaceuticals Ltd. v. Rohit Prajapati, (2020) 17 SCC 157, decided 1 April 2020 (Justices D.Y. Chandrachud and A. Rastogi). Full judgment available at: https://api.sci.gov.in/supremecourt/2016/2562/2562_2016_0_1501_21582_Judgement_01-Apr-2020.pdf

[6] Confederation of Real Estate Developers of India (CREDAI) v. Vanashakti, 2025 SCC OnLine SC 2474 / 2025 INSC 1326, decided 18 November 2025 (CJI B.R. Gavai, Justices K.V. Chandran and U. Bhuyan). Analysis and judgment coverage at: https://www.scconline.com/blog/post/2025/11/19/ex-post-environmental-clearances-sc-2025-review-vanashakti/

[7] Down to Earth, “SC’s decision to recall Vanashakti judgement risks making prior environmental clearance optional,” 20 November 2025. Available at: https://www.downtoearth.org.in/governance/scs-decision-to-recall-vanashakti-judgement-risks-making-prior-environment-clearance-optional

[8] Bar and Bench, “For media publicity: Supreme Court on Jairam Ramesh plea against retrospective environmental clearances,” February 2026. Available at: https://www.barandbench.com/news/litigation/for-media-publicity-supreme-court-on-jairam-ramesh-plea-against-retrospective-environmental-clearances

[9] Down to Earth, “The Supreme Court is sending wrong signals on post facto environmental clearances.” Available at: https://www.downtoearth.org.in/environment/the-supreme-court-is-sending-wrong-signals-on-post-facto-environmental-clearances-85208