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SC Relief for 493+ Stalled Projects: Environmental Clearance Mechanism Restored

In a major legal victory for the real estate sector, Supreme Court landmark ruling brings long-awaited relief to over 493 projects stalled in the Mumbai and Pune.

BY Realty+
Published - Wednesday, 06 Aug, 2025
SC Relief for 493+ Stalled Projects: Environmental Clearance Mechanism Restored

In a major legal victory for the real estate sector, the Hon’ble Supreme Court today disposed of W.P.(C) 166/2025 – Vanashakti vs Union of India, a case initiated by CREDAI-MCHI, the apex body of real estate industry in MMR, reaffirming that the State Environment Impact Assessment Authority (SEIAA) and State Expert Appraisal Committee (SEAC) shall continue to remain the competent authorities for project-level environmental assessments.

This landmark ruling brings long-awaited relief to over 493 projects stalled in the Mumbai Metropolitan Region (MMR) and Pune, affecting more than 70,000 housing units, particularly in the affordable and mid-income segments. The judgment removes regulatory ambiguity that had severely impacted project approvals, construction timelines, and homebuyer confidence.

The Supreme Court has also struck down key portions of the 2014 and 2016 notifications — specifically Clause 14(a) and Appendix 16 — that had sought to introduce an Environmental Cell under local authorities, a move that would have led to confusion and potential overlaps in jurisdiction. Additionally, the court rejected the differential regulatory treatment for industrial sheds and educational buildings under the Environment (Protection) Act, 1986, underscoring the need for uniformity in environmental regulation.

Domnic Romell, President, CREDAI-MCHI, said, “We initiated this petition to bring clarity to an increasingly complex and ambiguous environmental clearance process, and we are grateful that the Hon’ble Supreme Court has upheld the role of SEIAA and SEAC as competent authorities. This is a monumental relief for Maharashtra’s real estate sector. This victory reflects the strength of united industry advocacy and our resolve to drive meaningful reform.”

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