On 06 August, 2025, the Supreme Court allowed construction projects covering 20,000 to 1,50,000 sq. mtrs.—including housing, industrial sheds, educational institutions, and hostels, to proceed with clearance from the State Environment Impact Assessment Authority (SEIAA), removing the need for Central environmental approval.

This decision revives thousands of stalled projects affected by a prior stay on the Centre’s January 29 notification, challenged by NGO Vanashakti over alleged ecological risks. The court upheld the Environment Ministry’s stance that the Centre lacks capacity for detailed scrutiny across states. However, it partially struck down the Centre’s blanket exemption, mandating state-level scrutiny for specific categories like industrial sheds and educational facilities.

Additionally, the bench—comprising CJI B R Gavai and Justice K Vinod Chandran—clarified that projects near eco-sensitive zones, wildlife areas, critically polluted zones, and inter-state borders will now fall under state authority. The ruling balances environmental protection with development needs, ensuring that such activities aren’t entirely stalled pending Central approvals.