The Supreme Court has held that the Central Government can grant post-facto environmental clearances through a valid statutory notification issued under Section 3 of the Environment (Protection) Act, 1986. Environmental clearances are mandatory approvals required for development projects to ensure they do not harm the environment, governed by regulations under the Environment (Protection) Act, 1986 and the Environmental Impact Assessment (EIA) Notification, 2006. Justice Bagchi, who read out the judgment in court today, has clarified that the court's decision will have a prospective effect and clearances already granted under the impugned regime will be protected. In November last year, Court had recalled its landmark Vanashakti judgment from May 2025, which barred the Central government from granting retrospective environmental clearances (ECs). He argued that proportionality had to be considered and that demolition of completed projects would impose significant environmental and public costs.