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Supreme Court clears path for over 493 stalled housing projects in MMR and Pune

#Law & Policy#Residential#India#Maharashtra
Last Updated : 6th Aug, 2025
Synopsis

The Supreme Court has ruled in favor of CREDAI-MCHI in a key environmental clearance case, unlocking over 493 previously stalled housing projects in the Mumbai Metropolitan Region and Pune. The verdict restores the authority of state-level environmental bodies, benefiting over 70,000 housing units primarily in the affordable and mid-income segments. The decision overturns earlier notifications that caused regulatory confusion, marking a major win for developers and homebuyers. The legal intervention by CREDAI-MCHI brings long-awaited clarity and momentum to real estate growth in Maharashtra.

The Supreme Court has ruled in favor of CREDAI-MCHI's petition challenging ambiguities in the environmental clearance process that had led to the stalling of over 493 real estate projects across the Mumbai Metropolitan Region (MMR) and Pune. The affected projects had been in limbo, impacting construction timelines and delaying delivery of around 70,000 homes many in the affordable and mid-income categories.


The case, W.P.(C) 166/2025 - Vanashakti vs Union of India, was taken up earlier this week and has now been officially disposed of by the court. In its judgment, the apex court reaffirmed the roles of the State Environment Impact Assessment Authority (SEIAA) and the State Expert Appraisal Committee (SEAC) as the competent authorities for granting project-level environmental clearances.

The ruling brings an end to months of confusion following the 2014 and 2016 environmental notifications, which had attempted to transfer key clearance powers to local municipal environmental cells. The Supreme Court struck down Clause 14(a) and Appendix 16 from those notifications, citing that such provisions would have caused overlapping jurisdictions, further complicating the regulatory process.

Moreover, the court dismissed the idea of applying different environmental rules for industrial sheds and educational buildings, clarifying that all types of construction must follow the same environmental norms under the Environment (Protection) Act, 1986. This uniform approach is expected to eliminate inconsistency and ensure better compliance across the real estate sector.

Domnic Romell, President of CREDAI-MCHI, expressed gratitude for the outcome and said that the petition was filed to bring much-needed clarity to the approval process. He credited the united legal and industry effort behind the success of the case and noted that this victory was a reflection of the industry's commitment to regulatory transparency and reform.

The legal action was part of a broader effort by CREDAI-MCHI to push for timely approvals and avoid unnecessary hurdles in project execution. The association has been at the forefront of lobbying for predictable and streamlined development norms, particularly for the housing segments that cater to Maharashtra's growing urban population.

The Supreme Court's decision is expected to revive investor sentiment and help accelerate project completions that had been halted due to unclear jurisdictional authority. The official court order is expected to be uploaded shortly.

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