Green clearance order by the Supreme Court enables resumption of 493 halted real estate projects in Mumbai and Pune, as stated by CREDAI-MCHI.
The Supreme Court of India's ruling on August 5, 2025, has brought clarity to the environmental clearance process, particularly for the real estate sector in the Mumbai Metropolitan Region (MMR) and Pune. The decision reaffirms the State Environment Impact Assessment Authority (SEIAA) and the State Expert Appraisal Committee (SEAC) as the competent authorities for granting environmental clearances at the project level in India.
The ruling addresses a prolonged regulatory deadlock, eliminating ambiguity about who has authority for environmental clearances, even in eco-sensitive and polluted areas. This decision is expected to significantly ease regulatory hurdles and revive stalled projects without compromising environmental governance.
The court upheld the 29 January 2025 notification by the Ministry of Environment, Forest & Climate Change (MoEF&CC) that clarified exemptions and processes related to environmental clearance requirements for building and construction projects at the state level. The ruling also rejected challenges questioning the constitutional validity of this notification.
The judgment prevents the need for duplicative clearance at the central level for projects sized between 20,000 and 150,000 square meters, allowing streamlined approvals through state bodies. It emphasizes the need to balance development with environmental protection, recognizing both the importance of ecological safeguards and the imperative to avoid stalling legitimate development activities.
The environmental clearance process remains a structured multi-stage process involving screening, public consultation, expert appraisal, and final approval, differentiated by project category. Category A (high impact) clearances remain under the MoEF&CC, while Category B (moderate impact) are handled by SEIAA and SEAC at the state level.
Domnic Romell, president of CREDAI-MCHI, stated that the Supreme Court's judgment on environmental clearances is a direct result of their proactive legal intervention to protect the interests of their members and the thousands of affected homebuyers. The ruling affects more than 70,000 housing units, particularly in the affordable and mid-income segments.
The SC's decision comes after the petition filed by Vanshakti NGO vs Union of India, which challenged certain portions of the 2014 and 2016 notifications. The SC has struck down key portions of these notifications, specifically Clause 14(a) and Appendix 16.
Notably, over 493 stalled real estate projects in the MMR and Pune are expected to benefit from this ruling. CREDAI-MCHI has also announced that over 25,000 buildings in the Mumbai Metropolitan Region are eligible for redevelopment with a total value of ₹30,000 crore, although further details were not provided.
In conclusion, the Supreme Court's ruling on August 5, 2025, has provided much-needed clarity to the environmental clearance process in India, particularly for the real estate sector. This decision is expected to streamline approvals, boost investor confidence, and revive stalled projects without compromising environmental governance.
- The ruling on environmental clearances by the Supreme Court of India is a direct consequence of the legal intervention by Domnic Romell, president of CREDAI-MCHI, aimed at safeguarding the interests of thousands of affected homebuyers.
- The Supreme Court's decision affects more than 70,000 housing units, primarily in the affordable and mid-income segments within the Mumbai Metropolitan Region (MMR) and Pune.
- Over 493 stalled real estate projects in the MMR and Pune are expected to benefit from this ruling, expediting their approvals and allowing for potential revival.
- CREDAI-MCHI has announced that over 25,000 buildings in the Mumbai Metropolitan Region are eligible for redevelopment, with a combined value of ₹30,000 crore, following the Supreme Court's judgment.
- Beyond the real estate sector, the ruling is significant for various industries like personal finance, wealth management, and business, as it seeks to increase investor confidence by streamlining approvals and easing regulatory hurdles.
- The decision exerted pressure on the financial sector, as reducing regulatory delays might lead to an increase in real estate investments and boost the economy of India.
