August 9, 2025:
The Supreme Court 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, paving the way for 493 stalled projects across MMR and Pune to proceed.
1) Why were the projects stalled?
In August 2024, the National Green Tribunal’s (NGT) Bhopal bench prohibited SEIAAs from approving real estate projects larger than 20,000 sq m located within 5 km of ecologically sensitive areas. Developers were instructed to seek approvals from the Ministry of Environment, Forest and Climate Change (MoEFCC) instead.
This directive led most developers in Maharashtra to adopt a wait-and-watch approach, which in turn stalled several projects in MMR and Pune. Many affected sites were near Sanjay Gandhi National Park, Tungareshwar Wildlife Sanctuary, and Karnala Bird Sanctuary.
2) What does the Supreme Court order say?
The SC confirmed that SEIAA and SEAC will continue to grant environmental clearances.
It struck down provisions from the 2014 and 2016 notifications that sought to introduce Environmental Cells under local authorities and removed differential regulatory treatment for industrial sheds and educational buildings, ensuring uniform environmental rules.
3) How will the order help homebuyers?
Many redevelopment projects were left incomplete after the NGT order. Some residents had vacated and seen their buildings demolished, only for work to stop. The SC ruling will restart these projects, enabling displaced residents to return to their new homes
4) More housing supply to hit the market
Developers expect the resumption of delayed projects to significantly boost the housing stock in both MMR and Pune. This includes not only redevelopment schemes but also large township projects and mid-income housing that had been awaiting environmental clearance. With more projects entering the market, competition among developers is likely to increase, which could lead to better payment plans, promotional offers, and more varied housing configurations for buyers. Additionally, the revival of projects may also encourage fresh investment in the sector, as regulatory uncertainty has now been reduced.
5) Will prices increase?
Industry experts warn that while supply will improve, prices may not necessarily stabilise. According to CREDAI-MCHI, many developers had invested substantial capital before the NGT’s August 2024 order and faced financial strain during the prolonged halt. As a result, prices in the affected 493 projects are expected to rise by 7–8% to help recover holding costs, increased interest on loans, and inflation-linked construction expenses.
In the short term, demand from buyers eager to secure homes in well-connected areas may also push prices higher, especially for properties in redevelopment hotspots of suburban Mumbai.
Source: Hindustan Times
