Over 70,000 Housing Units Stalled in MMR Due to Green Clearance Hurdles
The National Green Tribunal (NGT) has mandated that all real estate projects within a 5 km radius of eco-sensitive zones must obtain environmental clearance from the Central government, causing widespread delays and financial strain.
HousingReal EstateEnvironmental ClearanceMmrNgtReal Estate NewsJun 30, 2025
The tribunal’s order mandates that all real estate projects falling within a 5 km radius of eco-sensitive zones must now secure environmental clearance from the Central government instead of state-level authorities — a significant departure from earlier norms. Until this directive, the State Environment Impact Assessment Authority (SEIAA) had the jurisdiction to evaluate and clear such proposals.
The new requirement has caused widespread delays, impacting project timelines and placing enormous financial strain on both developers and homebuyers. According to industry estimates, a majority of the affected projects fall within the affordable and mid-income housing segments. In early June, real estate representatives sought relief by meeting municipal commissioner Bhushan Gagrani, urging him to allow these stalled projects to at least proceed up to the plinth level under the Ease of Doing Business initiative. However, the plea was turned down, as any such permission would be in direct violation of the NGT’s August 2023 order, passed in response to a petition filed by Bhopal-based environmentalist Pranjal Karera.
Karera’s petition had sought that the Ministry of Environment, Forest and Climate Change (MoEF&CC) centrally appraise all construction projects within 5 km of protected zones — including those under the Wildlife Protection Act, 1972, critically and severely polluted areas identified by the Central Pollution Control Board, and eco-sensitive zones notified under Section 3(2) of the Environment Protection Act.
The order’s impact is being felt across large swathes of MMR — including areas surrounding Sanjay Gandhi National Park, Tungareshwar Wildlife Sanctuary, Karnala and Thane Bird Sanctuaries, Panvel Creek, and Phansad Wildlife Sanctuary. Developers argue that while environmental safeguards are necessary, delays in clearances are jeopardising the viability of ongoing projects. “These clearances are a crucial part of the approval process. Timely intervention is essential to streamline procedures without compromising environmental norms,” said Zameer Khan, CEO of Unimax World. He added that several projects are also awaiting Coastal Zone Management Plan (CZMP) approvals, further compounding delays.
Developers warn that the prolonged uncertainty could result in increased project costs, which may eventually be passed on to homebuyers. The situation is particularly severe in Navi Mumbai, where many housing projects on CIDCO-allotted government land are stuck. These projects cannot be registered with the Maharashtra Real Estate Regulatory Authority (MahaRERA) without the requisite clearances. “The ripple effects are far-reaching — contractors, buyers, and even state government revenues are suffering. We’re hoping for a viable solution soon,” said Hitendra Ghadia, director at Millennium Infra.
Frequently Asked Questions
What is the National Green Tribunal (NGT)?
The National Green Tribunal (NGT) is a statutory body in India that deals with cases related to environmental protection and other natural resources. It was established to ensure efficient and expeditious disposal of cases relating to environmental protection and conservation of forests and other natural resources.
Why are housing projects in MMR stalled?
Housing projects in MMR are stalled because the National Green Tribunal (NGT) has mandated that all real estate projects within a 5 km radius of eco-sensitive zones must obtain environmental clearance from the Central government, causing widespread delays and financial strain.
What are eco-sensitive zones?
Eco-sensitive zones are areas around protected areas such as national parks, wildlife sanctuaries, and other ecologically important areas. These zones are designated to protect the environment and biodiversity by regulating and controlling activities that can cause pollution and degradation.
How is the new requirement affecting developers and homebuyers?
The new requirement for environmental clearance has caused widespread delays, impacting project timelines and placing enormous financial strain on both developers and homebuyers. Developers are facing increased costs, which may eventually be passed on to homebuyers.
What is the role of the State Environment Impact Assessment Authority (SEIAA)?
The State Environment Impact Assessment Authority (SEIAA) is responsible for evaluating and clearing environmental proposals for projects at the state level. However, the new NGT directive mandates that projects within a 5 km radius of eco-sensitive zones must now obtain clearance from the Central government.
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