T.N. Godavarman Thirumulpad vs Union Of India & Ors

The Supreme Court emphasized the importance of conserving natural resources under Article 48A and Article 51A of the Constitution of India, mandating that both the Union and State Governments must protect the environment. The Court held that before diverting forest land for non-forest purposes, user agencies must compensate for the ecological loss by paying the Net Present Value (NPV) of the diverted land, as stipulated under the Forest (Conservation) Act, 1980. This ruling establishes that economic development must not come at the expense of environmental degradation, necessitating a balance between development and conservation.