'Homes in projects stalled due to NGT order may be dearer by 7-8%'
Mumbai, Aug. 7 -- Although the Supreme Court on Tuesday restored the power of the State Environment Impact Assessment Authority (SEIAA) in all states to approve realty projects measuring over 20,000 square metres, providing much needed relief to developers, home buyers in Maharashtra are unlikely to benefit from the order, several developers told HT.
In fact, prices of homes in 493 affected projects in the state, stalled due to the National Green Tribunal's direction in 2024 for centralised appraisal of large-scale construction projects, may rise by 7-8%, the developers said.
"Developers who had mobilised capital for launching projects were severely inconvenienced by the restriction, and had to wait for nearly a year till the power was restored with the state-level authority," said Keval Valambhia, chief operating officer, CREDAI-MCHI. "Most of the affected projects were for mass housing, and homes in these projects are likely to be dearer by 7-8% compared to earlier."
The NGT's Bhopal bench had, in August 2024, directed developers of projects measuring over 20,000 square metres and located within 5 kilometres of ecologically sensitive areas to seek approval from the ministry of environment, forest and climate change (MoEFCC), instead of SEIAA.
Most developers in Maharashtra adopted a wait and watch approach after the NGT order, instead of applying for necessary approvals with the central ministry. Consequently, numerous projects in the Mumbai Metropolitan Region (MMR) - around Sanjay Gandhi National Park, Tungareshwar Wildlife Sanctuary, Karnala Bird Sanctuary, Thane Bird Sanctuary, Phansad Wildlife Sanctuary and Panvel creek - got stalled.
Valambhia from CREDAI-MCHI and several others said Tuesday's apex court order would not benefit consumers as developers would be keen to recover losses. But others said affected developers always had the option of seeking approval from the central government.
"They could have moved an application with the expert appraisal committee (under the MoEFCC) in New Delhi, the way a handful of developers did, including a Gujarat-based developer with a mega project in Mumbai," a developer who did not wish to be identified told HT.
Pankaj Kapoor, founder and managing director of Liases Foras, a non-broking real estate research company, said lack of environmental clearance was only one of several factors - such as subdued sales - due to which many housing projects got stalled.
Home buyers may still have to pay more than earlier as such developments often lead to speculative pricing, he noted....
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