India Supreme Court nullifies retroactive environmental clearance rule, probes fund usage

The Supreme Court of India directed the central government to file a detailed affidavit on the utilisation of the Environmental Relief Fund, noting that the scheme, established under the Public Liability Insurance Act, has seen little or no disbursement. The bench, comprising Chief Justice Surya Kant, Justice Joymala Bagchi and Justice Vipul M. Pancholi, also ordered the Central Pollution Control Board to assist in providing information on the fund’s status.

In a separate unanimous verdict, the Court quashed the 2021 Office Memorandum that had permitted retrospective environmental clearances for projects already under construction. The ruling held that such a change must be effected through a formal legal notification, not an administrative order, and applied prospectively, leaving existing clearances untouched. The Court cited violations of Articles 14 and 21 of the Constitution and emphasized that future projects must obtain prior environmental clearance.