Supreme Court Order Unlocks 500 Stalled Real Estate Projects in MMR and Pune

The Supreme Court's recent ruling has cleared the way for 493 stalled real estate projects in the Mumbai Metropolitan Region (MMR) and Pune, providing much-needed relief to homebuyers and developers.

Real EstateSupreme CourtMumbaiPuneEnvironmental ClearanceReal Estate MumbaiAug 09, 2025

Supreme Court Order Unlocks 500 Stalled Real Estate Projects in MMR and Pune

Real Estate Mumbai:The Supreme Court has disposed of a writ petition filed by NGO Vanshakti vs Union of India, reaffirming that the State Environment Impact Assessment Authority (SEIAA) and the State Expert Appraisal Committee (SEAC) will continue to be the competent authorities for project-level environmental assessments.

This ruling removes a key regulatory hurdle that had stalled approvals for nearly 500 housing projects, paving the way for thousands of homebuyers in the Mumbai Metropolitan Region (MMR) and Pune to finally get possession of their long-delayed homes.

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. This order of the SC has paved the way for 493 stalled real estate projects across the Mumbai Metropolitan Region (MMR) and Pune.

Here’s how the order is likely to impact real estate projects in MMR and Pune:

1) Why were the projects stalled?

In August 2024, the National Green Tribunal’s (NGT) Bhopal bench barred State Environment Impact Assessment Authorities (SEIAAs) from approving real estate projects larger than 20,000 sq m located within 5 km of ecologically sensitive areas. Instead, developers were directed to seek approvals from the Ministry of Environment, Forest and Climate Change (MoEFCC). Following the order, most developers in Maharashtra adopted a wait-and-watch approach rather than approaching the central ministry for clearances. This led to the suspension of several housing projects in the Mumbai Metropolitan Region (MMR) and Pune falling within the 5 km buffer of sensitive zones. Many parts of MMR, particularly Mumbai’s western and central suburbs, are adjacent to ecologically rich zones such as Sanjay Gandhi National Park (SGNP), Tungareshwar Wildlife Sanctuary, and Karnala Bird Sanctuary. Projects within this radius were unable to move forward. Typically, once developers secure environmental clearance, they can obtain commencement certificates (CCs) for their projects and subsequently register them with the Maharashtra Real Estate Regulatory Authority (MahaRERA) to begin sales in the open market.

2) What does the SC order say?

The SC has said 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. 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, according to CREDAI-MCHI, an apex body of real estate developers. The court also 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 CREDAI-MCHI said.

3) How will the Supreme Court order help homebuyers?

Several housing societies in Mumbai had already undergone redevelopment and vacated their apartments when the NGT’s August 2024 order halted work. In many cases, the old buildings had been demolished, but projects were left in limbo. With the Supreme Court now clearing the regulatory hurdle, many of these stalled redevelopment projects are expected to resume, offering relief to residents who have been waiting to return to their new homes, a real estate developer told HT.com. “This judgment brings much-needed clarity on the scope of environmental regulation for real estate projects. The Supreme Court’s recognition that the General Conditions under the EIA 2006 Notification do not apply to projects under Items 8(a) and 8(b) ensures regulatory certainty and paves the way for timely development. It addresses a key legal hurdle that has stalled critical housing and infrastructure projects nationwide,” said Samit Shukla, Partner, Dispute Resolution Practice, Trilegal.

4) More housing supply to hit the market

According to real estate developers, project launches in the Mumbai market have been subdued over the past year due to pending approvals. With the clearance now in place, many projects in the pipeline are expected to be launched, increasing overall supply. This will give homebuyers a wider range of options to consider before finalising their purchase.

5) Will prices increase?

According to real estate developers, prices are set to increase owing to an increase in launches due to the SC's green signal on getting environmental approvals. Prices of homes in 493 affected projects in the state, stalled due to the National Green Tribunal’s direction in 2024 for centralised appraisal of large-scale construction projects, may rise by 7-8%, according to a report published in the Hindustan Times newspaper. “Developers who had mobilised capital for launching projects were severely inconvenienced by the restriction, and had to wait for nearly a year till the power was restored with the state-level authority,” said Keval Valambhia, chief operating officer, CREDAI-MCHI. “Most of the affected projects were for mass housing, and homes in these projects are likely to be dearer by 7-8% compared to earlier prices,” Valambhia was quoted as saying in the Hindustan Times.

Frequently Asked Questions

Why were the real estate projects in MMR and Pune stalled?

The projects were stalled due to a National Green Tribunal (NGT) order in August 2024, which barred State Environment Impact Assessment Authorities (SEIAAs) from approving real estate projects larger than 20,000 sq m within 5 km of ecologically sensitive areas. Developers were required to seek approvals from the Ministry of Environment, Forest and Climate Change (MoEFCC), leading to a regulatory hurdle.

What did the Supreme Court's order state?

The Supreme Court's order reaffirmed that the State Environment Impact Assessment Authority (SEIAA) and the State Expert Appraisal Committee (SEAC) will remain the competent authorities for conducting project-level environmental assessments. The court also struck down key portions of the 2014 and 2016 notifications that had sought to introduce an Environmental Cell under local authorities.

How will the order benefit homebuyers?

The order will benefit homebuyers by removing the regulatory hurdle that had stalled approvals for nearly 500 housing projects. This will allow many stalled projects to resume, providing relief to residents who have been waiting to return to their new homes.

Will the order lead to an increase in housing supply?

Yes, the order is expected to lead to an increase in housing supply. With the clearance now in place, many projects in the pipeline are expected to be launched, giving homebuyers a wider range of options to consider.

Is there a possibility of price increases due to the order?

Yes, real estate developers predict that prices may increase by 7-8% due to the increase in project launches and the resolution of the regulatory hurdle. This is particularly true for mass housing projects that were affected by the National Green Tribunal’s direction in 2024.