In a significant ruling on November 18, 2025, the Supreme Court of India, by a 2:1 majority, recalled its earlier judgment that prohibited the Centre from granting retrospective environmental clearances (ECs) for projects violating environmental regulations. This decision comes after a review petition was filed by the Builders Association of India (BAI) against the May 16 judgment, which had deemed such clearances a "gross illegality" and an "anathema" to environmental law.

Chief Justice B.R. Gavai and Justice K. Vinod Chandran supported the recall, emphasizing the potential consequences of demolishing public projects worth over ₹20,000 crore if the earlier ruling remained in effect. Chief Justice Gavai stated, "Public projects of ₹20,000 crore will have to be demolished if the clearance is not reviewed."

Justice Ujjal Bhuyan, who dissented, argued that retrospective clearances are fundamentally incompatible with environmental jurisprudence. He described the concept as "an anathema, a curse devoted to evil, to environmental jurisprudence," and maintained that the case was not suitable for review.

The May 16 judgment had barred the Ministry of Environment, Forests and Climate Change (MoEFCC) from granting retrospective ECs and had struck down a 2017 notification and a 2021 Office Memorandum that recognized such clearances. The court had previously criticized the government for attempting to regularize illegal constructions through retrospective clearances, which it deemed as protecting those who violated environmental laws.

The majority opinion now allows for the possibility of granting retrospective clearances for permissible projects, while the dissenting opinion warns against undermining environmental protections. The matter has been referred to an appropriate bench for further consideration. A detailed judgment is expected to follow, clarifying the court's stance on this complex issue.