29 Jul 2026
Trilegal secures key Supreme Court ruling for CREDAI on ex post facto environmental clearances
03 Aug 2026
03 Aug 2026
Matter Overview | The Hon’ble Supreme Court of India, in its reportable judgment dated 29 July 2026 (“Judgment”) in Vanashakti v. Union of India and connected matters, considered the validity of the Notification dated 14 March 2017 (“2017 Notification”) and the Office Memorandum dated 7 July 2021 (“2021 OM”) issued by the Ministry of Environment, Forest and Climate Change (“MoEF&CC”) in relation to ex post facto Environmental Clearances (“ECs“). The judgment arose after the earlier decision in Vanashakti v. Union of India dated 16 May 2025 (“Vanashakti-I”) was recalled in review sought by CREDAI, following which the matters were restored for fresh hearing. Trilegal successfully represented CREDAI in this re-hearing.
The Supreme Court held that the prior EC regime under the Environment Impact Assessment Notification, 2006 (“EIA 2006 Notification”) is mandatory. However, it also held that the 2017 Notification is a valid delegated legislative measure, narrowly tailored and time-bound in nature, and therefore capable of operating as an exceptional violation-management mechanism. In contrast, the Hon’ble Court held that the 2021 OM, being an administrative instruction, could not create a perpetual regularisation regime inconsistent with the 2006 Notification and was therefore declared invalid. The 2021 OM was accordingly quashed with prospective effect.
Importantly, the Court directed that all ECs already granted under the 2017 Notification and the 2021 OM shall remain valid unless individually challenged on merits, and that all pending applications under those instruments shall be taken to their logical conclusion in accordance with law. At the same time, the Court clarified that no fresh applications under the 2017 Notification and the 2021 OM can now be entertained. The Court further clarifies that there is no restrain on the power of the Central Government to grant ex post facto EC save and except by way of a valid notification in exercise of powers under Section 3 of the Environment Protection Act, 1986.
Matter Significance | The decision is of considerable importance to the real estate and infrastructure sectors, as it resolves the uncertainty that had prevailed following the earlier judgment in Vanashakti-I. It preserves the mandatory nature of prior EC while recognising the legal validity of a carefully circumscribed statutory amnesty measure such as the 2017 Notification. The protection granted to existing ECs and pending applications is particularly significant for projects that had already progressed under the prevailing regulatory framework.
The Trilegal Dispute Resolution Team advising on the matter was led by Partner: Samit Shukla, Counsel: Saakshi Saboo, Associate: Vaibhavi Bhalerao.
Date of Judgment | 29 July 2026.
About Trilegal
Trilegal is a leading full-service law firm in India with over 25 years of experience, trusted for its in-depth expertise and client-centric approach. The firm advises a diverse set of clients, including Fortune 500 companies, global investment funds, major Indian conglomerates, domestic and international banks, technology and media giants, family offices, and high-net-worth individuals. With 161 partners operating under a distinctive lockstep model, Trilegal is the largest equity partnership in the country. The firm retains over 1,300 professionals across its Mumbai, Delhi, Gurugram, Bengaluru, Chennai, Pune, and GIFT City offices.
Trilegal has consistently been recognised among India’s top-tier firms in leading legal directories such as Chambers & Partners (Asia Pacific and Global), Legal 500 Asia Pacific, and Benchmark Litigation. It has also earned several prestigious accolades, including being named Law Firm of the Year at the ET Global Legal Awards2026, Best Overall Law Firm by India Business Law Journal (IBLJ) 2025, Innovative Lawyers in Disputes & Crisis Management by the Financial Times (FT) Innovative Lawyers Asia-Pacific Awards in 2025, M&A Firm of the Year by IFLR Asia-Pacific in 2024.
For more information, please get in touch with Prakruti Jani | Mob: +91-9867868976 | BD@trilegal.com.
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