"Only at the time of construction activities, environment clearances are required and not before that," a bench comprising Chief Justice H L Dattu and Justices M Y Eqbal and Arun Mishra said.
"For developing a new capital city, there will be some or the other problem. Here it is about acquiring 30,000 hectares of land. All sorts of problems will be there. Can the Supreme Court say that the capital city will be in this part or that part?" the bench observed.
"It is very diificult for us (to pass direction)," the bench said, following which Bhushan sought to withdraw the petition with the liberty to approach the National Green Tribunal.
Allowing withdrawal of the PIL, the bench said the petitioners are at liberty to approach an appropriate forum.
The new capital city of Andhra Pradesh is proposed in Guntur district, north of Guntur city, and will be developed under Capital Region Development Authority.
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