Supreme Court Quashes Centre’s Retrospective Green Amnesty

New Delhi: The Supreme Court on Wednesday quashed the 2021 Office Memorandum that allowed retrospective environmental clearances to projects started without prior approval, holding it legally impermissible.

A three-judge Bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and Vipul M. Pancholi, in a unanimous verdict, ruled that the decision would operate prospectively.

The court said the Centre has the power to grant post-facto environmental clearances only through statutory notifications under Section 3 of the Environment (Protection) Act, 1986, and not through an administrative office memorandum. “The 2021 OM (Office Memorandum) is an administrative order, and provides for a perpetual regime for grants of EC to projects undertaken without prior approval. It substantially alters the nature of enquiry as well as the criteria for grants of the EC under the 2006 notification. The 2021 OM thereby subplants an earlier dedicated legislation through an administrative instruction, which is impermissible in law,” it said.

Quashing the OM, the Bench observed that a “perpetual amnesty scheme” for all projects lacked valid criteria. “The OM does not satisfy the test of proportionality and reasonableness and is violative of Article 14 (right to equality) and 21 (right to life) of the Constitution. Thus, the 2021 OM is quashed, but with prospective effect,” the court said.

The court clarified that no further applications under the 2017 notification and the 2021 OM would be entertained. It also restrained the Centre from issuing administrative orders in future to grant post-facto environmental clearances, except through valid statutory notifications under the Environment (Protection) Act.

The Bench said its directions would not limit the Supreme Court’s powers under Article 142 to grant relief in appropriate cases.

The verdict follows hearings on 49 petitions, including review pleas relating to retrospective clearances. The court had reserved judgment on April 1 after six days of arguments.

Earlier, on May 16, 2025, a two-judge Bench had barred retrospective clearances. A subsequent three-judge Bench, in a 2:1 ruling on November 18, 2025, had allowed such clearances on payment of penalties, citing the risk of large public investments being rendered unviable.

With the present ruling applying prospectively, projects that had already received retrospective environmental clearance will not face demolition or punitive action.