New Delhi, September 12: In a major relief to builders and thousands of homebuyers, the Supreme Court on Thursday set aside a National Green Tribunal (NGT) order that had forced all large construction projects near eco-sensitive zones to seek clearance from the Centre. The bench of Justices J.B. Pardiwala and R. Mahadevan ruled that state-level expert authorities remain fully competent to grant environmental approvals for such developments.
Background
The dispute began when the NGT in August 2024 directed that every building or township project within five kilometres of protected forests, critically polluted zones or inter-state boundaries be treated as a high-risk “Category A” case, requiring central scrutiny. Real estate bodies like CREDAI, along with Godrej Properties and Sai Sahara Developers, argued this sudden shift paralysed projects and stranded homebuyers.
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The Ministry of Environment itself maintained that the original 2006 Environmental Impact Assessment (EIA) notification never intended central appraisal for ordinary construction, pointing out that its schedule left the relevant column for “General Conditions” blank for such projects.
Court’s Observations
“The 2006 notification does not provide for applicability of the General Conditions to projects in Entry 8(a) and 8(b),” the bench observed, stressing that wherever lawmakers wanted extra scrutiny, the schedule explicitly said so. The judges recalled earlier directions promoting decentralisation and noted that state environment authorities (SEIAAs) are “bodies of experts constituted by the Central Government itself and better equipped to assess local impacts.”
While emphasising sustainable development, the court added, “A country cannot progress unless development takes place. At the same time, precaution is needed so that the least damage is caused to the environment.”
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Decision
Allowing the appeals filed by CREDAI and others, the Court upheld the Centre’s 2025 notification that reaffirmed state control over clearances but struck down a separate exemption for industrial and educational buildings. The judges concluded, “The impugned order dated 09.08.2024 of the NGT… does not survive for consideration. The 2025 notification, excluding Note 1 to Entry 8(a), presently holds the field.”
With this ruling, stalled housing and redevelopment projects across the country can resume approvals through their respective state environment bodies.
Case: Confederation of Real Estate Developers Association of India (CREDAI) & Others v. Union of India & Others
Decision Date: 12 September 2025
