New CRZ Rule Blocks Navi Mumbai Development

Realty developers in Navi Mumbai are seeking reallocation of plots, development of which has been stuck due to a new Coastal Regulation Zone (CRZ) notification finalized in 2019. A total seven bodies representing realty developers in Mumbai’s satellite city have sought this relief from the City and Industrial Development Corporation (CIDCO). More than 200 plots allotted by the CIDCO, the planning authority for the region, are stuck without any development possibility now as the new CRZ rule does not permit the same. While these plots were allotted by CIDCO itself for development and it continues to charge additional lease premium from developers, the development is not allowed now. Out of over hundreds of such plots, properties have already been developed on more than 50 land parcels and sold to homebuyers. However, the authority is not issuing the occupation certificate and this has put homebuyers and developers in a fix. The CRZ notification was issued in 2011 and was finalized in 2019. The authority had allotted these plots for the development and continued to issue commencement certificates and other permission even during this period. The plots are located in various parts of Navi Mumbai including Ulwe near the proposed new international airport and Dronagiri. The government regulates the development along the coastal stretches through CRZ regulations. The Ministry of Environment & Forest has provided guidelines for demarcation in the CRZ notification area and have approved a set of CRZ maps and zones demarcated by the Maharashtra Coastal Zone Management Authority.  As per CRZ plans issued in January 2019, many plots allotted by CIDCO fall under category CRZ1 and CRZ2 that makes development on these land parcels no longer feasible. Realty developers are now suggesting the CIDCO attains blanket permission for the developable plots as these nodes, sectors were developed and plots were allotted by the body or premiums on the same should not be collected and plots can be reallocated in non-CRZ developable areas. The plots those are not developable can be reallocated at no extra cost within 3 months in the same node in the nearest sector.