NGT Ruling Halts 70,000 MMR Homes Amid Clearance Shift

Construction activity on over 70,000 housing units across 493 real estate projects in the Mumbai Metropolitan Region (MMR) has come to a halt following a ruling by the National Green Tribunal (NGT), Bhopal.

The directive mandates that any project located within a five-kilometer radius of an eco-sensitive zone must now obtain environmental clearance directly from the Central government, replacing the previously streamlined process managed by the State Environment Impact Assessment Authority (SEIAA). This abrupt shift in jurisdiction has triggered significant delays in project approvals and jeopardized delivery timelines.

Key Highlights

• 70,000+ housing units in MMR delayed due to new NGT directive
• Central clearance now required for projects near eco-sensitive zones
• Affordable and mid-income housing segments most affected

Most affected developments fall under the affordable housing and mid-income housing categories—segments critical to addressing Mumbai’s chronic housing shortage.

The disruption has sparked concern across the real estate industry, with developers and industry bodies urging the government to adopt a transitional clearance framework or fast-track pending approvals. They argue that without intervention, the housing crisis in one of India's most densely populated and economically vital regions will worsen, limiting access to quality housing for thousands of potential homebuyers.

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The stalled projects further risk raising property prices and intensifying inventory bottlenecks. Experts stress the need for regulatory clarity and coordination between the Centre and state agencies to streamline the environmental clearance process while preserving ecological balance.