August 11, 2025: In a significant ruling, the Supreme Court has confirmed that the State Environment Impact Assessment Authority (SEIAA) and the State Expert Appraisal Committee (SEAC) will continue to grant environmental approvals for building and township projects. The verdict resolves months of uncertainty triggered by an August 2024 order from the National Green Tribunal’s (NGT) Bhopal bench, which had barred SEIAAs from approving projects over 20,000 sq m within five km of ecologically sensitive zones.
That earlier directive had compelled developers to approach the Ministry of Environment, Forest and Climate Change (MoEF&CC) in Delhi, causing delays in hundreds of projects near areas such as Sanjay Gandhi National Park, Tungareshwar Wildlife Sanctuary, and Karnala Bird Sanctuary.
The apex court struck down exemptions that had allowed industrial sheds, schools, and educational institutions to bypass environmental clearance, declaring them unconstitutional. It also invalidated provisions for creating Environmental Cells under local bodies, citing risks of overlapping jurisdictions. Importantly, the bench clarified that the “General Condition” in the EIA 2006 framework does not apply to large residential and township projects under Items 8(a) and 8(b), eliminating the legal uncertainty that had stalled state-level approvals.
The decision offers relief to both homebuyers and developers. Several redevelopment projects in Mumbai had been abandoned mid-way, with residents displaced and structures demolished before work halted. With the Supreme Court’s intervention, these projects can now proceed, paving the way for homebuyers to finally receive long-delayed possession.
Industry body CREDAI-MCHI has welcomed the judgment, with developers forecasting an uptick in launches. Market experts anticipate that prices in previously stalled projects could rise by seven to eight per cent due to revived demand and supply. Analysts also expect the ruling to expand housing inventory in the MMR and Pune regions, particularly in the mid-income and affordable housing segments.
Source: Times Property
