In Brief
Formaldehyde manufacturing units in Rajasthan and Haryana operated with valid pollution control board permits but lacked prior environmental clearance required under 2006 regulations. The National Green Tribunal ordered closure for this procedural non-compliance. The Supreme Court reversed the closure orders, holding that units established in good faith with valid permits cannot be shut for technical irregularities when pollution norms are met. The Court allowed continued operations while units complete the pending clearance process, citing employment concerns and the principle that closure should be a last resort. The decision balances environmental protection with economic stability.
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