A-five member Appellate Division bench, led by chief justice Surendra Kumar Sinha, passed the order on Monday after hearing a writ petition and prosecution.
The apex court also stayed the High Court verdict that declared the housing project illegal.
Earlier on 16 August, the High Court scrapped its previous order that declared the Ashiyan City housing project in Uttara illegal.
An HC special bench comprising justice Syed AB Mahmudul Huq, justice Naima Haider and justice Qazi Reza-Ul-Hoque passed the order after reviewing its earlier verdict following a petition filed by the project authorities.
On 16 January 2014, the High Court declared Ashiyan City housing project illegal.
On 3 September 2015, the managing director of the housing project filed a petition with the High Court seeking a review of the HC verdict that declared it illegal.
Later, chief justice SK Sinha formed the special bench with three judges for the review of the plea.
Eight human rights and environmental organisations, including Ain o Salish Kendra, Association for Land Reforms and Development, Bangladesh Environmental Lawyers Association and Bangladesh Legal Aid and Services Trust, filed a writ petition with the High Court on 22 December 2012 challenging the legality of Rajuk’s approval and clearance certificate given by the Environment Directorate. Prothom Alo.