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CREDAI wins clarity in SC – Urban Projects near Sensitive Zones

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Judgment dated 12.9.2025 of the Supreme Court of India in Civil Appeal No.10043 of 2024 of Confederation of Real Estate Developers Association (CREDAI)  Vs.   Union of India and others

 EIA 2006 Notification was issued under Section 3 of the Environment Protection Act and classified the project in Category A and Category B for environmental clearance.  Category A projects require EC from the Central Expert Appraisal Committee, while Category B requires EC from the State Committee (SEAC) & State Environment Impact Assessment Authority (SEIAA)

However, the Schedule to the Notification provide for General Condition (GC) that the Category B projects would be treated as Category A if they are located within 5km distance of environmentally sensitive areas.

Items 8(a) Building and Construction Projects and  Item 8(b) Townships and Area Development Projects were not subjected to the GC.

The Supreme Court in Okhla Bird Sanctuary judgment extended the GC to the projects under Items 8(a) and 8(b).

By the Office Memorandum dated 2.5.2011, it was clarified that the projects of Items 8(a) & (b) would remain category B irrespective of their location.

On 22.12.2014, Notification was issued amending the Schedule to the EIA 2006 Notification and the Note to Items 8(a) & (b) was added expressly providing that GC shall not apply to the building projects.

In the aftermath of court orders, once again the Notification dated 29.1.2025 was issued and Note was inserted in Column No.5 of Item 8 that the GC shall not apply.

This Notification dated 29.1.2025 was upheld save and except Note 1 to Entry 8(a) by the Supreme Court vide judgment dated 5.8.2025 in Vanashakti case.

 

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