The Supreme Court has upheld the authority of the State Environment Impact Assessment Authority (SEIAA) and the State Expert Appraisal Committee (SEAC) as the competent bodies for granting project-level environmental approvals. The ruling, delivered on August 5, is expected to revive 493 stalled housing and real estate projects across the Mumbai Metropolitan Region (MMR) and Pune, easing uncertainty that has gripped the sector for years.
The case originated from a long-standing dispute in Vanshakti NGO vs Union of India, where petitioners had challenged the framework for environmental clearances. By confirming SEIAA and SEAC’s jurisdiction, the apex court effectively removed the ambiguity that had frozen approvals and delayed thousands of housing units, particularly in the affordable and mid-income segments.
According to CREDAI-MCHI, the real estate developers’ body, over 70,000 homebuyers had been impacted as projects remained stuck at different stages of execution. Developers were unable to proceed despite investments already made, while contractors, suppliers, and workers also faced financial strain.
The judgment also struck down specific clauses from the Ministry of Environment, Forest and Climate Change’s 2014 and 2016 notifications. These provisions, which proposed clearance cells under local authorities, were deemed likely to create overlapping jurisdictions and regulatory confusion. The court further ruled against differential treatment of project categories such as industrial sheds and educational buildings, stating that uniform environmental standards must apply to all construction activity under the Environment (Protection) Act, 1986.
Industry representatives welcomed the move as a critical step towards restoring predictability and transparency in the approval process. Outgoing CREDAI-MCHI President Domnic Romell said the ruling would “restore confidence, accelerate housing delivery, and allow developers to plan with clarity.”
Analysts note that reviving stalled projects in MMR and Pune will have wider economic implications. The two regions together account for a major share of Maharashtra’s housing pipeline, and clearing the backlog could increase housing supply, reduce pricing pressure, and ease the burden on homebuyers awaiting possession.
Legal experts highlighted that the judgment strengthens the principle of decentralised oversight, with state-level authorities empowered to manage project assessments within the framework of central laws. This may also serve as a precedent for other states facing similar disputes over clearance authority.
The Supreme Court’s final written order is awaited. Once issued, SEIAA and SEAC are expected to fast-track pending applications, enabling developers to resume work. While projects will still need to comply with all environmental safeguards, the removal of jurisdictional hurdles is expected to significantly reduce delays and improve delivery timelines.
Image- sci.gov.in
