real estate development - The Legal Chamber

Supreme Court Allows Ex-Post Facto Environmental Clearance: A Major Shift in Environmental Law

6Feb

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Allows Ex-Post Facto Environmental Clearance: A Major Shift in Environmental Law

The Supreme Court, in a review petition, reversed its earlier judgment by allowing the recall of the ban on ex-post facto environmental clearances. The Court ruled that the Environment (Protection) Act, 1986 does not absolutely prohibit such clearances and that they may be granted in exceptional cases after applying the principle of proportionality and the polluter pays principle. The bench emphasized that a balanced approach, weighing ecological damage against economic and public interest, must be adopted. Facts Of The Case: The case originates from legal challenges to a 2017 notification and a 2021 office memorandum issued by the Ministry of Environment, Forest and Climate Change (MoEF&CC). These instruments created a framework for granting ex-post facto Environmental Clearance (EC...

Supreme Court Quashes Service Tax Demand, Says No Suppression If Transactions are Transparent

30Jan

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Quashes Service Tax Demand, Says No Suppression If Transactions are Transparent

The Supreme Court held that transactions involving the outright sale of land, even if accompanied by ancillary facilitation activities, do not constitute taxable services of a ‘Real Estate Agent’ under the Finance Act, 1994. The activity must involve a clear contract of agency. Mere sale of immovable property is excluded from the definition of ‘service’. Facts Of The Case: The respondent, M/s Elegant Developers, entered into three Memorandums of Understanding (MOUs) with M/s Sahara India Commercial Corporation Ltd. (SICCL) for the identification, acquisition, and development of land parcels for real estate projects. Under these agreements, Elegant Developers was responsible for tasks like purchasing contiguous land blocks, obtaining title clearances, securing necessary government approva...

Central vs. State Green Authority: Supreme Court Settles the Jurisdiction Debate for Builders

4Nov

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Supreme Court

Central vs. State Green Authority: Supreme Court Settles the Jurisdiction Debate for Builders

In a significant ruling, the Supreme Court upheld the validity of the 2025 EIA Notification, clarifying that the "General Conditions" under the EIA 2006 Notification do not apply to building and construction projects. Consequently, such projects will continue to be appraised and granted environmental clearance by State-level authorities (SEIAA/SEAC) and not be automatically elevated to the Central level for approval. Facts Of The Case: The case originated from an order dated 09.08.2024 passed by the National Green Tribunal (NGT). The NGT had directed that all building and construction projects falling within 5 km of protected areas, critically polluted areas, or other eco-sensitive zones must be treated as ‘Category A’ projects. This meant they would require environmental clearance from ...

Wake-Up Call for Courts: Supreme Court Says Long Delays Can Create New Rights in Property Disputes

18Sep

By The Legal ChamberNo Comments

Supreme Court

Wake-Up Call for Courts: Supreme Court Says Long Delays Can Create New Rights in Property Disputes

The Supreme Court set aside the High Court's order condoning a delay of 5,250 days in filing a restoration application. It held that courts must be cognizant of third-party rights created during prolonged delays and that such condonation requires reasoned orders after hearing affected parties, who may be impleaded. The matter was remanded for fresh consideration. Facts Of The Case: The case originated from a suit for eviction filed by Mafatlal Mangilal Kothari and another (Respondent Nos. 1 and 2) against the defendants concerning a disputed property. The Trial Court dismissed the suit in 1988, prompting the plaintiffs to file a First Appeal. This appeal was admitted by the Bombay High Court in 1989 but was eventually listed in 2008, where the Court passed an order stating that if the co...