Supreme Court Ruling Clears Path for 500 Stalled Real Estate Projects in MMR and Pune
The Supreme Court has cleared a major regulatory hurdle, allowing nearly 500 stalled real estate projects in the Mumbai Metropolitan Region (MMR) and Pune to proceed. This ruling is expected to provide relief to thousands of homebuyers and increase housing supply in the market.
Real EstateSupreme CourtMmrPuneEnvironmental ClearanceReal Estate NewsAug 09, 2025
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 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 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 finalizing 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 centralized appraisal of large-scale construction projects, may rise by 7-8%, according to a report published in the Hindustan Times newspaper.
“Developers who had mobilized 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 located 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 ruling reaffirm?
The Supreme Court 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.
How will the Supreme Court's ruling help homebuyers?
The ruling will help homebuyers by clearing the regulatory hurdle that had stalled numerous housing projects. Many stalled redevelopment projects are expected to resume, offering relief to residents who have been waiting to return to their new homes.
What impact will the ruling have on the housing market in MMR and Pune?
The ruling is expected to increase the housing supply in the market as many projects in the pipeline can now be launched. This will provide homebuyers with a wider range of options to consider before finalizing their purchase.
Will the ruling lead to an increase in home prices?
Yes, according to real estate developers, prices of homes in the affected projects may rise by 7-8% due to the increase in launches and the resolution of the regulatory hurdle.
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