MUMBAI: Around 200 real estate projects in the Mumbai Metropolitan Region (MMR) are on hold following an order by the National Green Tribunal (NGT), which requires projects within a 5-km radius of eco-sensitive zones to secure environmental clearance from the central government, not state agencies.
The order, delivered on August 9 and applicable nationwide, relates to those with a built-up area of more than 20,000sq mt and within a 5-km radius of eco-sensitive zones, wild life sanctuaries and severely polluted areas. In the MMR, the order has stalled projects around the Sanjay Gandhi National Park in Borivali, the Flamingo bird sanctuaries in Thane and Navi Mumbai, and the Tungareshwar Wildlife Sanctuary in Vasai-Virar.
The builder lobby is confused and upset, not so much with the order per se but the fact that no system or guidelines have been put in place by the Union Ministry of Environment, Forests and Climate Change (MoEFCC), to implement the order. โWhen we approach the state agencies for clearances, they say they have no authority to grant approvals following the NGT order. The central agencies, on the other hand, have not received any guidelines to process the files. There is no clarity and no system in place,โ says Hari Babu, national president of realty developersโ body, National Real Estate Development Council (NAREDCO).
Developers point out that the scale of projects affected is large. While under-construction projects within the stipulated 5km radius are not impacted by the NGT order, those that are include projects that want to make changes to the original plan and layout. These would need fresh environmental approvals, according to the NGT order, and comprise a majority of the 200 projects that are stuck.
Also within the ambit of the NGT order are fresh launches within the 5-km radius, where builders have purchased land parcels or have signed development deeds with societies for redevelopment but are yet to receive environmental clearances.
According to Dominic Romell, President of CREDAI-MCHI, a Mumbai-based body of real estate developers, โThe NGTโs directive has created an administrative vacuum, halting large-scale projects in Maharashtra. We urge the Maharashtra government to resume state-level hearings for these projects pending the appointment of a special appraisal committee at the centre.โ
The order, builders point out, has resulted in extended timelines and cost escalations. Hiren Chheda, Managing Director of Ekatva Group, who has several ongoing projects in Thane, says it is not practical to impose a blanket rule on maintaining a certain distance from green cover in a city like Mumbai, where many densely populated suburbs are located right next to the Sanjay Gandhi National Park and Aarey Milk Colony.
HT reached out many developers who did not want to speak on record. However, Anuj Goradia, director, Dosti Realty, said one of his under-construction projects in Thane is within 5 km of the Flamingo Bird Sanctuary and stuck midway due to the NGT order. โItโs the same story. The Centre does not have the guidelines or Standard Operating Procedures as yet to process our project. In the meantime, my meter is down, resulting in cost escalation,โ said Goradia, who said that they are awaiting environmental appraisal of an amendment to one of the three towers in this project.
According to Manan Shah, managing director, MICL Group, which has projects in Dahisar, delays resulting from the NGT order are impacting home buyers. โThey are worried about getting their homes in time.โ
Meanwhile, CREDAI-MCHI has filed a petition in the Supreme Court, seeking a stay on the tribunalโs order until a central committee is established to evaluate projects for environmental clearance. Three hearings have taken place and the next hearing is scheduled for January 21. The court has directed the MoEFCC to respond to the queries of CREDAI-MCHI.
Until the recent order, the State Environment Impact Assessment Authority (SEIAA) used to grant environmental clearances to all real estate projects in Maharashtra. This arrangement allowed state authorities familiar with the local geography and regulations to efficiently approve projects tailored to the areaโs needs.
Principal Secretary, Environment, Government of Maharashtra, Pravin Darade confirms that 150 to 200 real-estate projects could be impacted by the NGT order. He said, โWe are going strictly by the NGT order,โ adding with sarcasm, โWe have instructed developers to give the state government a written undertaking that their projects did not fall within the 5-km radius and the government would grant them environment approvals. Builders are obviously not obliging,โ Darade explained.
