More than 100 large-scale housing projects in Pimpri-Chinchwad and its surrounding areas have come to a standstill after the Supreme Court stayed a recent Union Environment Ministry notification that allowed state-level environmental clearances for construction projects up to 1.5 lakh square meters. The unexpected ruling has put over ₹30,000 crore worth of real estate developments on hold, leaving developers in limbo and homebuyers uncertain about their future properties.
Last month, the Union Ministry of Environment issued a notification easing clearance norms by shifting project approvals from the central expert committee to the state-level Environmental Impact Assessment (EIA) Committee. The move was intended to streamline approvals, reduce bottlenecks, and accelerate project execution in rapidly growing regions like Pune. However, the Supreme Court’s intervention has now forced developers to revert to central-level clearances, significantly delaying approvals and construction.
Developers Face Delays, Rising Costs, and Uncertainty
Pimpri-Chinchwad, which falls under highly polluted zones, has been subject to stricter environmental clearance requirements for projects exceeding 20,000 square meters. Under the previous system, developers were required to seek approvals from the Union Ministry’s expert committee, a process that led to prolonged delays. The January 2025 notification aimed to decentralize this approval process, making it easier and faster for developers to secure clearances at the state level. However, environmental concerns triggered legal challenges, leading to the Supreme Court’s stay order, which has now brought the entire process to a halt.
The impact is severe, with many housing projects stuck for over six months, causing escalating costs for developers. With ongoing financial commitments to land acquisitions, labor, and interest on loans, the inability to proceed with construction is adding financial strain on real estate firms. Additionally, the shortage of new housing supply may lead to increased property prices in the region, affecting homebuyers who were already in the process of purchasing homes in these stalled projects.
Real Estate Body CREDAI Calls for Urgent Resolution
The real estate industry has strongly opposed the Supreme Court’s stay, calling it a major setback to the sector, which contributes to over 250 allied industries and is the second-largest employment generator in India. CREDAI-Pune Metro, the industry body representing developers, has warned that the delays in environmental approvals will not only impact builders but also lead to job losses, a slowdown in housing supply, and economic setbacks for the state and central governments due to reduced stamp duty and GST collections.
According to Ranjit Naiknavare, president of CREDAI Pune, neither the state environmental committees nor the central government have taken steps to appraise and issue environmental clearances for projects in Pimpri-Chinchwad and its surrounding 5-km radius. He further highlighted that the Bhopal NGT order, which is being used as a reference to halt approvals, is applicable to all states and union territories, yet only Maharashtra is facing this challenge.
The latest CREDAI-CRE Matrix Housing Report indicates that new project launches have dropped by 25% due to the ongoing uncertainty, which is expected to further drive up property prices due to limited stock availability.
Homebuyers and the Real Estate Market Caught in the Crossfire
The Supreme Court’s decision has left homebuyers frustrated, as those who have already invested in under-construction properties now face indefinite delays in project completion. Many were banking on the relaxed clearance norms to speed up possession timelines, but with the legal battle ongoing, buyers are left with uncertainty regarding when their homes will be delivered.
The real estate sector, which was hoping for policy reforms to facilitate growth, is now witnessing yet another regulatory roadblock. Developers and industry stakeholders are now urging the central and state governments to seek immediate intervention from the Supreme Court to resolve the issue and allow stalled projects to resume at the earliest.
If the legal deadlock continues, not only will it impact developers and homebuyers, but it could also dent investor confidence in Maharashtra’s real estate sector, pushing future investments toward states with more stable regulatory environments.
