Supreme Court Ruling Clears Path for 493 Stalled Real Estate Projects in Mumbai and Pune

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The Supreme Court has issued a key ruling that will allow 493 previously stalled real estate projects in the Mumbai Metropolitan Region (MMR) and Pune to resume. The projects, which collectively represent over 70,000 housing units, had been delayed due to confusion over environmental clearance requirements.

On August 5, the apex court dismissed a petition filed by an environmental NGO and upheld the authority of the State Environment Impact Assessment Authority (SEIAA) and the State Expert Appraisal Committee (SEAC) to provide environmental clearances for large construction projects. The ruling confirms that these state-level bodies are the competent authorities for granting approvals, even for projects located within five kilometers of eco-sensitive zones.

The stalled projects were impacted after a National Green Tribunal (NGT) directive required all developments near eco-sensitive areas to obtain clearance from the Central government instead of the state-level bodies. This change in approval jurisdiction created an administrative void, halting hundreds of residential and commercial projects near protected regions such as Sanjay Gandhi National Park and Tungareshwar Wildlife Sanctuary.

In its verdict, the Supreme Court also struck down Clause 8 of a January 29 notification from the Ministry of Environment, Forest and Climate Change, which had sought to exempt large projects of up to 1.5 lakh square meters from environmental scrutiny. The court ruled that such exemptions were not in line with environmental protection standards.

CREDAI-MCHI, the leading real estate body in Maharashtra, welcomed the decision. Its president, Domnic Romell, called the verdict a “landmark judgment” that eliminates long-standing regulatory uncertainty and allows both developers and homebuyers to move forward with confidence.

With the ruling in place, SEIAA and SEAC can now resume clearing pending applications, enabling developers to adjust project plans and restart construction. While the verdict is expected to revive investor and buyer sentiment, developers have also warned that rising construction costs and delays may still pose financial hurdles.