The Supreme Court has confirmed state authorities can handle environmental permits. The State Environment Impact Assessment Authority (SEIAA) and State Expert Appraisal Committee (SEAC) will continue to decide on Category B projects. This decision impacts over 500 developments in the Mumbai Metropolitan Region and Pune. It ends a long-standing confusion that delayed construction.
Category A projects still require Union government approval. The ruling clarifies that a rule about projects near sensitive zones does not apply to Category B real estate. This rule had previously forced some state-level projects into the federal review process. Legal experts estimate this issue stalled around 700 projects in Maharashtra alone.
Previously, a 2014 Union government clarification exempted real estate from this rule. The Kerala High Court overturned this exemption in 2024. The National Green Tribunal agreed with the Kerala court. The developers’ group CREDAI-MCHI filed a case to clarify the environmental clearance process.
CREDAI-MCHI president Domnic Romell stated the judgment helps many homebuyers. He mentioned the ruling clarifies the roles of SEIAA and SEAC. The decision impacts about 70,000 housing units in stalled projects.
Many projects were halted in areas like Mulund and Thane. These locations are near sensitive zones like mangroves and hills.