Concessionaires With NHAI Work Orders Issued Before March 2024 Exempt From Environmental Clearance Requirement: Kerala High Court
The High Court clarified that NHAI contractors and concessionaires with Work Orders issued before March 21, 2024, may extract or source ordinary earth for linear projects without Environmental Clearance, provided they comply with NHAI’s approved safeguards.
Justice Devan Ramachandran, Justice M.B. Snehalatha, Kerala High Court
The Kerala High Court has held that concessionaires executing projects under Work Orders issued by the National Highways Authority of India (NHAI) before March 21, 2024, are not required to obtain an Environmental Clearance (EC) for sourcing or extracting ordinary earth.
The Court was hearing a reference petition arising from conflicting views on whether such an exemption extended to private concessionaires operating under valid NHAI Work Orders in light of the Supreme Court’s ruling in Noble M. Paikada v. Union of India (2024).
A Division Bench comprising Justice Devan Ramachandran and Justice M.B. Snehalatha concluded that “the express intent of the Hon’ble Supreme Court is to allow even concessionaires, who are enjoying a Work Order issued by the ‘NHAI’ prior to 21.03.2024, to engage in extraction, sourcing, and borrowing of ordinary earth for linear projects, without having to apply for or obtain an ‘EC’.”
Senior Advocate S. Sreekumar represented the petitioners, while Advocate B.G. Bidan Chandran represented the respondents.
Background
The reference arose after a Single Judge of the High Court sought clarity on whether concessionaires of the NHAI, who received Work Orders before the Supreme Court’s March 2024 ruling in Noble M. Paikada, were required to obtain an Environmental Clearance under the Environment (Protection) Act, 1986, for extracting or sourcing ordinary earth for road construction.
The Supreme Court in Noble M. Paikada had struck down Item 6 of Appendix IX of the Ministry of Environment, Forest and Climate Change’s notifications dated March 28, 2020, and August 30, 2023, which had earlier exempted NHAI projects from EC requirements.
However, in a clarificatory order dated May 15, 2024, the Supreme Court permitted all NHAI Work Orders issued prior to March 21, 2024, to continue without interruption, thereby retaining the exemption for such ongoing projects.
The question before the Kerala High Court was whether this relaxation also applied to concessionaires executing works for NHAI and whether such operations could continue without seeking environmental clearance.
Court’s Observation
The Kerala High Court examined the implications of the Supreme Court’s clarification and the subsequent regulatory framework, observing that the clarification made by the apex court extended to both NHAI and its concessionaires, as the judgment explicitly referred to Work Orders rather than limiting its scope to the Authority itself.
Rejecting arguments that only NHAI could claim exemption, the Court stated that “if the intent of the Hon’ble Supreme Court was to allow only the ‘NHAI’ to conduct the extraction, sourcing and borrowing of ordinary earth directly, then it would not have offered the clarification with respect to the Work Orders issued by it in favour of the concessionaires.”
The High Court further noted that a previous Division Bench judgment in Pradeep Kumar P. v. State of Kerala (2025) had already directed NHAI to ensure environmental safeguards while permitting concessionaires to extract ordinary earth under the Kerala Minor Mineral Concession Rules, 2015.
The Bench reiterated that concessionaires must strictly comply with Standard Operating Procedures (SOPs) and safeguards prescribed by NHAI, such as erecting metallic information boards at extraction sites and adhering to environmental monitoring requirements.
The NHAI, through its counsel, informed the Court that a fresh notification dated March 17, 2025, had been issued by the Ministry of Environment, Forest and Climate Change, incorporating these safeguards and fully aligning with the Supreme Court’s directions.
The Bench recorded the assurance that these updated procedures would be implemented for all ongoing and future NHAI projects, ensuring ecological accountability alongside project continuity.
Conclusion
Answering the reference, the Kerala High Court held that the Supreme Court intended to allow both NHAI and its concessionaires with valid Work Orders issued before March 21, 2024, to continue sourcing or extracting ordinary earth for linear projects without EC.
The Bench clarified that such an exemption must operate within the framework of environmental safeguards approved by the NHAI and the High Court in Pradeep Kumar P., and that the future projects must comply with the revised 2025 notification and standard procedures for sustainable execution.
Cause Title: Anirudh Karthikeyan v. The State of Kerala & Others
Appearances:
Petitioner: S. Sreekumar (Senior Advocate) with Advocates K.R. Arun Krishnan, Deepa K. Radhakrishnan, Sanal C.S., Vishak K.V., Anu T.H., Renjith K.R., and S. Rajeev.
Respondents: Advocates B.G. Bidan Chandran and Rafeek with Government Pleader.
