The Supreme Court order cleared the way for nearly 500 stalled real estate projects in MMR and Pune. Here are 5 things to know about it and major highlights.
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NEW DELHI: In a landmark judgment, the Supreme Court has paved the way for the revival of nearly 500 stalled real estate projects across the Mumbai Metropolitan Region (MMR) and Pune, bringing much-needed relief to thousands of homebuyers who have been waiting for possession of their homes for years.
The ruling came in the case of NGO Vanshakti vs Union of India, where the apex court reaffirmed that the State Environment Impact Assessment Authority (SEIAA) and the State Expert Appraisal Committee (SEAC) will continue to be the competent authorities for conducting project-level environmental assessments.
This decision effectively removes a regulatory hurdle that had halted large-scale housing projects located within 5 km of ecologically sensitive zones, a restriction earlier imposed by the National Green Tribunal (NGT).
Why Were the Projects Stalled?
In August 2024, the NGT’s Bhopal bench barred SEIAAs from approving real estate projects larger than 20,000 sq m located within 5 km of ecologically sensitive areas. Developers were directed to seek approvals from the Ministry of Environment, Forest, and Climate Change (MoEFCC) instead.
This directive affected several projects in MMR and Pune, especially those near sensitive zones like:
- Sanjay Gandhi National Park (SGNP)
- Tungareshwar Wildlife Sanctuary
- Karnala Bird Sanctuary
Without environmental clearances, developers could not secure commencement certificates or register projects with the Maharashtra Real Estate Regulatory Authority (MahaRERA), leaving entire housing societies in limbo, some with demolished old buildings but no construction progress.
What Did the Supreme Court Say?
The Supreme Court has reaffirmed that the State Environment Impact Assessment Authority (SEIAA) and the State Expert Appraisal Committee (SEAC) will remain the competent authorities for conducting project-level environmental assessments. This means state agencies will continue to oversee and grant environmental clearances, rather than requiring central-level approvals for most projects.
In its judgment, the court also:
- Struck down parts of the 2014 and 2016 notifications, specifically Clause 14(a) and Appendix 16, that proposed creating an Environmental Cell under local authorities. According to the real estate body CREDAI-MCHI, such a move could have led to overlapping jurisdictions and regulatory confusion.
- Rejected special treatment for certain buildings. The SC disallowed differential regulatory treatment for industrial sheds and educational buildings under the Environment (Protection) Act, 1986, reinforcing that environmental regulations must apply uniformly across all project categories.
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Impact on Homebuyers
For thousands of residents, especially those awaiting completion of redevelopment projects, this ruling means work can finally resume. Many societies had vacated their old apartments and were living in temporary accommodations, incurring rent expenses while waiting for possession.
Real estate legal experts note that this judgment clarifies the scope of environmental regulation for projects under Items 8(a) and 8(b) of the EIA 2006 Notification, ensuring developers can move forward without legal uncertainty.
More Housing Supply in the Market
According to industry bodies like CREDAI-MCHI, project launches in Mumbai slowed down significantly over the past year due to pending environmental clearances. With the SC’s green signal, a wave of new launches is expected, offering homebuyers more options and potentially improving market liquidity.
Will Property Prices Rise?
Developers warn that while supply will increase, prices for affected projects may rise by 7–8%. This is partly because of the year-long delay, which increased holding costs for developers, and partly due to renewed demand as stalled projects restart.
“Most of the affected projects were mass housing. With work resuming, homes are likely to be dearer compared to earlier prices,” said Keval Valambhia, COO, CREDAI-MCHI.
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