June 30,2025: The construction of over 70,000 housing units spread across 493 projects in the Mumbai Metropolitan Region (MMR) has ground to a halt following a directive issued by the National Green Tribunal (NGT) in Bhopal. The order mandates that any real estate development within a five-kilometre radius of eco-sensitive zones must now obtain environmental clearance from the Central government, replacing the earlier system where state authorities, specifically the State Environment Impact Assessment Authority (SEIAA), held jurisdiction.
This shift in approval protocol has significantly disrupted project timelines and imposed heavy financial burdens on both developers and prospective homeowners. Industry estimates suggest that most of the stalled projects lie within the affordable and mid-income housing categories.
In early June, real estate developers appealed to Municipal Commissioner Bhushan Gagrani for interim relief, requesting permission to continue construction up to the plinth level under the Ease of Doing Business policy. However, this request was denied, as it would contravene the NGT’s August 2023 ruling, issued in response to a petition by environmentalist Pranjal Karera.
Karera’s plea sought central oversight for all construction activities near protected zones, including those under the Wildlife Protection Act, critically polluted zones as flagged by the Central Pollution Control Board, and eco-sensitive areas under the Environment Protection Act.
The fallout is being felt in locations across MMR—such as Sanjay Gandhi National Park, Karnala and Thane bird sanctuaries, Panvel Creek, and Phansad Wildlife Sanctuary.
“While environmental safeguards are vital, project viability is at risk,” said Zameer Khan, CEO of Unimax World. Approvals under the Coastal Zone Management Plan (CZMP) are also pending, worsening delays. Developers caution that continued uncertainty could inflate costs, ultimately impacting homebuyers.
“The ripple effects span contractors, buyers, and state revenue,” noted Hitendra Ghadia, Director at Millennium Infra.
Source: Hindustan Times
