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HomeInfrastructureHousingEnvironmental Clearance Order Stalls 200 Mumbai Real Estate Projects

Environmental Clearance Order Stalls 200 Mumbai Real Estate Projects

Environmental Clearance Order Stalls 200 Mumbai Real Estate Project

The Mumbai real estate sector is facing significant disruptions following a directive from the National Green Tribunal (NGT), which has led to the suspension of nearly 200 projects across the Mumbai Metropolitan Region (MMR). Issued on August 9, the order mandates that projects with a built-up area exceeding 20,000 square metres and situated within a 5-kilometre radius of eco-sensitive zones must obtain environmental clearances from the central government. Prior to this, such approvals were handled by state authorities, but the new ruling has left both developers and government agencies struggling to adapt.

The order affects numerous high-profile projects located in proximity to critical ecological zones, including the Sanjay Gandhi National Park in Borivali, the Flamingo bird sanctuaries in Thane and Navi Mumbai, and the Tungareshwar Wildlife Sanctuary in Vasai-Virar. These areas are considered environmentally sensitive, and the ruling aims to protect them from the adverse impact of large-scale construction activities. While the intention behind the order is to safeguard the environment, its sudden implementation has resulted in substantial delays for real estate developers. Many projects, particularly those in the planning or early construction phases, are now caught in limbo due to the lack of clear guidelines on how the new clearance process should be executed. State agencies have refused to grant approvals, citing the NGT order, while central agencies are still in the process of setting up the mechanisms to take over this responsibility. This has created an administrative vacuum, leaving projects stalled and developers uncertain about how to proceed.

The impact has been particularly pronounced for projects requiring modifications to their original plans or new developments within the designated 5-kilometre radius of the eco-sensitive zones. Land parcels previously acquired for redevelopment and agreements with societies have also been left hanging. Developers have expressed frustration that the broad application of the rule does not take into account the unique urban challenges of Mumbai, where eco-sensitive zones often adjoin densely populated areas. The delays have not only caused significant financial strain but have also led to escalating project costs. With construction timelines stretched indefinitely, many developers fear that the financial viability of their projects may be compromised. In response to the situation, the Confederation of Real Estate Developers’ Associations of India – Maharashtra Chapter (CREDAI-MCHI) has filed a petition with the Supreme Court. The petition seeks a temporary suspension of the NGT order until a central committee is formed to oversee the clearance process.

The court has already held three hearings on the matter, with the next one scheduled for January 21. The Ministry of Environment, Forests, and Climate Change (MoEFCC) has been directed by the court to address the concerns raised by the petitioners. Prior to this ruling, the State Environment Impact Assessment Authority (SEIAA) was responsible for granting environmental clearances in Maharashtra. This system was praised for its efficiency and understanding of regional environmental concerns. However, the sudden shift to centralised clearance has disrupted the process, leaving a gap in administration that has contributed to the widespread uncertainty currently gripping the industry. Until a resolution is reached, developers are calling for interim measures that would allow state-level hearings to continue in the absence of a central mechanism. The fate of the stalled projects remains uncertain, and with Mumbai’s real estate market under strain, stakeholders are left grappling with the potential long-term impacts of the NGT’s ruling.

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