Supreme Court Ruling Brings Clarity and Relief to 493 Stalled Real Estate Projects
Mumbai: In a significant boost to Maharashtra’s real estate sector, the Supreme Court on August 5 disposed of the writ petition Vanashakti vs Union of India, originally initiated by CREDAI-MCHI. This ruling reaffirms that the State Environment Impact Assessment Authority (SEIAA) and State Expert Appraisal Committee (SEAC) will remain the competent authorities for project-level environmental clearances.
Relief for 493 Projects and 70,000 Homebuyers
According to CREDAI-MCHI, the ruling brings long-awaited clarity and relief to over 493 stalled projects in the Mumbai Metropolitan Region (MMR) and Pune, affecting more than 70,000 housing units, especially in the affordable and mid-income segments.
Ambiguity in Environmental Approvals Resolved
The verdict removes regulatory ambiguity that had impacted construction timelines, project approvals, and homebuyer sentiment, the apex real estate body said in a statement. This clarity is crucial for the real estate sector, which has been grappling with delays and uncertainties due to the unclear regulatory framework.
Court Strikes Down 2014 & 2016 Notification Clauses
The Supreme Court also struck down key provisions of the 2014 and 2016 environmental notifications, specifically Clause 14(a) and Appendix 16. These clauses had proposed the creation of an Environmental Cell under local authorities, leading to potential overlaps in jurisdiction. By striking down these clauses, the court has simplified the regulatory process and reduced the bureaucratic hurdles for developers.
Uniform Regulatory Framework Emphasised
In a significant move, the court rejected differential regulatory treatment for industrial sheds and educational buildings under the Environment (Protection) Act, 1986, and stressed the need for a uniform environmental clearance process. This decision ensures that all projects, regardless of their nature, are subject to a consistent and fair regulatory framework.
CREDAI-MCHI Welcomes Verdict as ‘Monumental Relief’
Domnic Romell, President of CREDAI-MCHI, said, “This judgment is a direct result of our proactive legal intervention to protect the interests of our members and thousands of homebuyers. We initiated this petition to bring clarity to an increasingly complex environmental clearance process.” Romell credited the victory to CREDAI’s united advocacy, senior counsels, and leadership across the organisation.
CREDAI-MCHI, the Confederation of Real Estate Developers' Associations of India, is a leading industry body representing real estate developers in Maharashtra. The organization has been at the forefront of advocating for policies that support the growth and sustainability of the real estate sector in the region.
