Supreme Court Reviews Its Own Judgment That Struck Down Ex Post Facto Environmental Clearance Notifications Under Environment (Protection) Act. Review Petition Seeks Recall Citing Overlooked Binding Precedents.

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Case Note & Summary

Background: The present matter is a review petition arising from the Supreme Court's judgment in Vanashakti v. Union of India, dated 16 May 2025, which held that the 2017 Notification and 2021 Office Memorandum, issued under the Environment (Protection) Act, 1986, were illegal and struck them down. The said instruments provided a mechanism for granting ex post facto environmental clearances to projects that had commenced or expanded without prior statutory clearance. The review petitioner, Confederation of Real Estate Developers of India (CREDAI), along with the Union of India and other stakeholders, seek recall of that judgment. Facts: The Environmental Impact Assessment Notification of 2006, issued under Sections 3(1) and 3(2)(v) of the Environment (Protection) Act, 1986 and Rule 5(3)(d) of the Environment (Protection) Rules, 1986, mandated prior environmental clearance for specified projects. In 2017, a notification was issued to retrospectively regularize projects that had started work without obtaining prior clearance, by prescribing terms of reference and imposing remediation. The 2021 Office Memorandum, issued pursuant to a National Green Tribunal order, provided a Standard Operating Procedure for handling such violation cases. Several writ petitions were filed challenging these instruments, leading to the Supreme Court’s judgment in Vanashakti, which declared them ultra vires the parent Act and violative of the precautionary principle. The Court directed that even after payment of penalty, project construction must be stopped and demolished if undertaken without clearance. However, the judgment clarified that environmental clearances already granted under the 2017 Notification and 2021 OM would remain unaffected. Legal Issues: The review petition contends that the judgment suffers from an error apparent on the face of the record because it overlooked binding decisions of the Supreme Court in Common Cause v. Union of India, Alembic Pharmaceuticals Limited v. Rohit Prajapati, and Electrosteel Steels Limited v. Union of India, which allegedly held a different view on the permissibility of ex post facto clearances. Additionally, it is argued that later decisions in D. Swamy v. Karnataka State Pollution Control Board and Pahwa Plastics Private Limited v. Dastak NGO, which were not cited, support the validity of such notifications. Arguments: Senior counsel for the review petitioners and the Union of India submitted that specific paragraphs from the earlier judgments were not brought to the notice of the Bench that decided Vanashakti. They emphasized that if the Bench felt that D. Swamy and Pahwa Plastics were inconsistent with the law, it ought to have referred the matter to a larger Bench instead of ignoring them. The Solicitor General highlighted the impact on major projects like SAIL and AIIMS Orissa, which were at advanced stages under the 2021 OM and would suffer irretrievable loss. They argued that the JUR’s interpretation of Section 15 of the EP Act, requiring demolition even after penalty, was contrary to the ratio of the cited precedents. Court’s Analysis and Decision: The record before us is limited to the submissions and the listing of the issues. The judgment itself is yet to provide analysis or a final order, as the text breaks off during the submission phase. Therefore, no decision has been rendered at this stage.

Issue of Consideration

Whether the judgment in Vanashakti v. Union of India is liable to be recalled on the ground that it did not consider binding precedents and thus suffers from error apparent on the face of the record.

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Law Points

  • ex post facto environmental clearance
  • review on ground of error apparent
  • judicial discipline
  • per incuriam
  • overlooked precedents
  • effect of Section 15
  • Environment (Protection) Act
  • delegated legislation validity
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Case Details

2025 LawText (SC) (11) 46

Review Petition (C) No. of 2025 Diary No. 41929 of 2025 in Writ Petition (C) No.1394 of 2023

B.R. Gavai, CJI

Tushar Mehta, Kapil Sibal, Mukul Rohatgi

Confederation of Real Estate Developers of India (CREDAI)

Vanashakti and Another

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Nature of Litigation

Review of a Supreme Court judgment in a public interest litigation concerning environmental law and delegated legislation.

Remedy Sought

Petitioner seeks recall of the judgment dated 16 May 2025 in Vanashakti v. Union of India, which struck down the 2017 Notification and 2021 OM.

Filing Reason

The review petitioner contends that the judgment overlooked binding decisions and precedents, rendering it per incuriam and causing miscarriage of justice.

Previous Decisions

Vanashakti v. Union of India, 2025 SCC OnLine SC 1139 (the judgment under review); various other decisions including Common Cause v. Union of India, Alembic Pharmaceuticals Ltd. v. Rohit Prajapati, Electrosteel Steels Ltd. v. Union of India, D. Swamy v. Karnataka State Pollution Control Board, and Pahwa Plastics Pvt. Ltd. v. Dastak NGO.

Issues

Whether the judgment in Vanashakti v. Union of India suffers from error apparent on the face of the record for failing to consider material paragraphs from Common Cause, Alembic Pharmaceuticals, and Electrosteel Steels. Whether the Court below was bound to consider the ratio of D. Swamy and Pahwa Plastics, or refer the matter to a larger Bench if it disagreed. Whether the oversight of binding precedents justifies recall of the judgment.

Submissions/Arguments

The review petitioners and supporting counsels argued that certain paragraphs from Common Cause, Alembic, and Electrosteel were not placed before the Court, and that D. Swamy and Pahwa Plastics were not considered, leading to an inconsistent view on ex post facto environmental clearances. It was submitted that if the two-judge Bench was of the view that D. Swamy and Pahwa Plastics did not lay down correct law, the only option was to refer the matter to a larger Bench. Shri Tushar Mehta submitted that the SAIL project and AIIMS Orissa project had reached final stages under the 2021 OM and would be severely affected if the JUR is not recalled. It was contended that the JUR erroneously interpreted Section 15 of the EP Act to require demolition even after payment of penalty, which is not the position as per the overlooked precedents.

Judgment Excerpts

27. ... Perusal of the provisions of Section 15 shows that even if the penalty is paid by the project proponent, it will not regularise the project. Therefore, even after the payment of penalty, if the project is under construction, the same has to be stopped and demolished and even if operation has already commenced, the same has to be stopped and demolished. Therefore, the construction work has to be demolished.

Procedural History

The 2006 EIA Notification was issued under the EP Act. The 2017 Notification provided a process for grant of ex post facto EC for projects that had commenced without prior EC. The 2021 OM was issued following an NGT order to formulate an SOP. Multiple writ petitions were filed challenging these instruments. The Supreme Court in Vanashakti v. Union of India (JUR) struck down the 2017 Notification and 2021 OM as illegal. The present review petition seeks recall of that judgment.

Acts & Sections

  • Environment (Protection) Act, 1986: Section 3(1), Section 3(2)(v), Section 19, Section 3(3)
  • Environment (Protection) Rules, 1986: Rule 5(3)(d)
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Supreme Court Supreme Court Reviews Its Own Judgment That Struck Down Ex Post Facto Environmental Clearance Notifications Under Environment (Protection) Act. Review Petition Seeks Recall Citing Overlooked Binding Precedents.
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