In Brief
A real estate project was granted environmental clearance by a municipal authority under a 2016 notification allowing local authorities to issue clearances for certain projects. After the project was substantially constructed, the NGT invalidated portions of the 2016 notification. The Supreme Court held that the completed buildings should be protected as the developer had acted in good faith compliance with the applicable law at the time of clearance. The Court applied the doctrine of legitimate expectation, holding that citizens cannot be expected to anticipate regulatory changes and lose their investments. However, any future construction must obtain fresh clearance under the current regulatory framework.
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