Supreme Court order on green clearance paves way for 493 stalled real estate projects in Mumbai and Pune: CREDAI-MCHI

The SC reaffirmed that SEIAA and SEAC shall continue to remain the competent authorities for project-level environmental assessments

In a major victory for 493 stalled real estate projects across the Mumbai Metropolitan Region (MMR) and Pune, the Supreme Court (SC) on August 5 disposed of writ petition of Vanshakti NGO vs Union of India, and reaffirmed that the State Environment Impact Assessment Authority (SEIAA) and State Expert Appraisal Committee (SEAC) shall continue to remain the competent authorities for project-level environmental assessments.

The Supreme Court judgment removes regulatory ambiguity that had severely impacted project approvals, construction timelines, and homebuyer confidence, CREDAI-MCHI said in a statement (Representational photo) (Pexels)

In its ruling, the SC reaffirmed that the State Environment Impact Assessment Authority (SEIAA) and the State Expert Appraisal Committee (SEAC) would remain the competent authorities for conducting project-level environmental assessments, allowing state agencies to continue overseeing environmental clearances.

"This landmark ruling brings long-awaited relief to over 493 projects stalled in the Mumbai Metropolitan Region (MMR) and Pune, affecting more than 70,000 housing units, particularly in the affordable and mid-income segments. The judgment removes regulatory ambiguity that had severely impacted project approvals, construction timelines, and homebuyer confidence," CREDAI-MCHI said in a statement.

According to the statement, the SC has also struck down key portions of the 2014 and 2016 notifications, specifically Clause 14(a) and Appendix 16, that had sought to introduce an Environmental Cell under local authorities, a move that would have led to confusion and potential overlaps in jurisdiction.

Additionally, the court rejected the differential regulatory treatment for industrial sheds and educational buildings under the Environment (Protection) Act, 1986, underscoring the need for uniformity in environmental regulation, the statement said.

Domnic Romell, president, CREDAI-MCHI, said, “This judgment is a direct result of CREDAI-MCHI’s proactive legal intervention to protect the interests of our members and the thousands of homebuyers impacted by stalled projects. We initiated this petition to bring clarity to an increasingly complex and ambiguous environmental clearance process, and we are grateful that the Hon’ble Supreme Court has upheld the role of SEIAA and SEAC as competent authorities."

According to CREDAI-MCHI's statement, the official order from the SC is awaited.