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

The Supreme Court emphasized the necessity of balancing economic development with environmental conservation, particularly in relation to forest land diversion. It held that user agencies must pay the net present value (NPV) for diverted forest land, as established in T.N. Godavarman Thirumulpad Vs. Union of India, to compensate for ecological loss. The Court directed the formation of a committee to determine the parameters and methodology for estimating forest land values and who should bear the costs of restoration, thereby reinforcing the principle that development should not compromise environmental integrity.