Green Clearance Hurdle Stalls Over 70,000 Housing Units Across MMR

Mumbai: June 30, 2025

Over 70,000 housing units across the Mumbai Metropolitan Region (MMR) have been stalled following a directive from the National Green Tribunal (NGT), causing widespread disruption in the real estate sector. The projects—spread across 493 sites—are facing delays due to the requirement for new environmental clearances from the Central government.

The NGT’s order, passed by its Bhopal bench, mandates that all real estate projects within a 5-kilometre radius of eco-sensitive zones must secure environmental clearance (EC) from the Union Ministry of Environment, Forest and Climate Change (MoEF&CC), rather than from state-level authorities as was previously permitted.

This regulatory shift has created a bottleneck for project approvals, particularly affecting developments near protected natural habitats like Sanjay Gandhi National Park, Tungareshwar Wildlife Sanctuary, Karnala and Thane Bird Sanctuaries, Panvel Creek, and Phansad Wildlife Sanctuary.

Centralised Clearance Slows Down Construction
 

Earlier, the State Environment Impact Assessment Authority (SEIAA) had the jurisdiction to clear such projects. The new rule, which was based on an August 2023 NGT judgment, shifts that responsibility to the Centre—resulting in administrative backlogs and prolonged waiting periods.

The ruling came in response to a petition filed by Bhopal-based environmentalist Pranjal Karera, who argued that state agencies were clearing projects without sufficient ecological consideration. The NGT accepted the plea and ordered a uniform rule mandating Central appraisal for all projects within 5 km of eco-sensitive or critically polluted areas.
 

Developers and Buyers Caught in the Crossfire
 

According to real estate experts, most of the affected housing units belong to the affordable and mid-income segments, worsening the housing crisis and affecting thousands of homebuyers.

In early June, a group of real estate developers and stakeholders met with BMC Commissioner Bhushan Gagrani, requesting that projects be allowed to continue up to the plinth level—the foundational stage—until the Central clearance was received. The request, however, was denied as it would violate the NGT’s ruling.

“The new rule is choking projects that were already in advanced stages of planning,” said Zameer Khan, CEO of Unimax World. “We respect environmental regulations, but we need a more balanced approach. These delays are not just financial; they are emotional for thousands of families waiting for their homes.”
 

Navi Mumbai Projects Hit Hard
 

The situation is especially severe in Navi Mumbai, where many developments on CIDCO-allotted lands have come to a standstill. Without the new Central clearance, these projects cannot be registered with the Maharashtra Real Estate Regulatory Authority (MahaRERA), making it illegal to market or sell the units.

Many of these projects are also waiting on approvals under the Coastal Zone Management Plan (CZMP), adding another layer of delay.

“The delay has stalled our entire pipeline. Contractors are idle, buyers are anxious, and our costs are escalating every day,” said Hitendra Ghadia, Director of Millennium Infra. “This kind of uncertainty has ripple effects across the economy.”

 

Real Impact on Homebuyers

For the average homebuyer, the consequences are alarming. With no clear timeline for environmental clearances, possession dates are being pushed back, and in many cases, EMIs are being paid on homes that are nowhere near completion. Developers have also warned that extended delays could lead to a rise in housing prices, as costs mount due to inflation and prolonged project timelines.

The state government, though sympathetic, has indicated that legal limitations prevent any relaxation in rules until the Central government takes a decision.

 

A Call for Balance

 

Industry leaders are now calling for a streamlined and time-bound clearance mechanism that balances the needs of environmental conservation with the ground realities of housing demand.

“There’s no denying that environmental protection is vital,” said Khan. “But a complete halt in construction is not a solution. We need guidelines that are both environmentally conscious and development-friendly.”

Until a resolution is found, thousands of homes—and the dreams attached to them—remain suspended in limbo, waiting for a green signal from Delhi.