A directive issued by the National Green Tribunal (NGT) has resulted in the suspension of nearly 200 real estate projects across the Mumbai Metropolitan Region (MMR). The order, which was implemented on August 9 and is applicable nationwide, has mandated that projects with a built-up area exceeding 20,000 square meters and located within a 5-kilometer radius of eco-sensitive zones must obtain environmental clearances from the central government. Previously, such approvals had been handled by state authorities.
The projects affected by this ruling include those situated near critical ecological areas such as the Sanjay Gandhi National Park in Borivali, the Flamingo bird sanctuaries in Thane and Navi Mumbai, and the Tungareshwar Wildlife Sanctuary in Vasai-Virar. The absence of clear guidelines for the implementation of the directive has led to significant delays, as both state and central agencies have been unable to process applications. It has been noted that state agencies have refused to handle approvals, citing the NGT order, while central agencies remain unprepared to take over this responsibility.
The impact of the order has been felt most acutely by projects requiring modifications to their original plans and by new developments within the designated 5-kilometer radius. Land parcels that had been acquired for redevelopment purposes, as well as agreements signed with societies, have also been left in limbo. Developers have expressed concerns that the blanket nature of the rule has not accounted for the unique challenges of Mumbai, where eco-sensitive zones are often adjacent to densely populated urban areas.
Delays caused by the directive are being linked to cost escalations and extended project timelines, putting the financial feasibility of many developments at risk. The builders’ association CREDAI-MCHI has filed a petition with the Supreme Court, seeking a temporary suspension of the order until a central committee is formed to oversee the clearance process. It has been reported that three hearings have already taken place, with the next one scheduled for January 21. The Ministry of Environment, Forests, and Climate Change (MoEFCC) has been directed by the court to respond to the concerns raised by the association.
Before the implementation of this order, the State Environment Impact Assessment Authority (SEIAA) had been responsible for granting environmental clearances in Maharashtra. This arrangement, praised for its efficiency and regional understanding, has now been disrupted. Developers have argued that the absence of a functional system under central oversight is creating an administrative vacuum, leading to widespread uncertainty and project delays.
As the process remains in flux, calls for interim measures to allow state-level hearings have been made by developers. Until a resolution is provided, the fate of these stalled projects remains uncertain, leaving developers and stakeholders grappling with the implications of this directive.
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