Over 100 large housing projects in Pimpri-Chinchwad and its surrounding areas have stopped following a Supreme Court stay. The notification had allowed state-level approvals for housing projects up to 1.5 lakh sq mt, easing clearance norms for developers in the Pune region. With the stay in place, these projects, valued at over Rs 30,000 crore, are again uncertain, causing significant delays for developers and homebuyers.
The notification was intended to address delays caused by strict environmental clearance norms in Pimpri-Chinchwad, which is considered a highly polluted area. Under previous regulations, projects exceeding 20,000 sq mt required approval from the Union Ministry's expert committee, resulting in bottlenecks. The January notification shifted approval authority to the state-level Environmental Impact Assessment (EIA) Committee, offering a much-needed reprieve to developers.
However, the Supreme Court's intervention now mandates central-level environmental approvals again, leading to delays. Resulting, housing projects between 20,000 and 1.5 lakh sq mt are stuck, pushing back construction timelines and increasing costs for developers. This slowdown affects developers financially and limits the supply of homes, potentially driving up property prices. Homebuyers face further delays in receiving possession of their properties, while the government loses out on revenue from property sales, stamp duty, and GST collections.
The real estate body CREDAI-Pune Metro has voiced strong opposition to the Supreme Court's stay, arguing that it is severely impacting the real estate industry, which is a major job creator and contributes significantly to the economy. The real estate body highlighted the confusion caused by the Maharashtra State Environment Committees, claiming that neither state nor central authorities are processing the necessary environmental clearances for the region despite the CEPI score of below 60 for Pimpri-Chinchwad.
