Approval Hiccups Hit Schedule, Profits of MMR and Bengaluru Realty Majors

Challenges of environmental clearance in Mumbai region and an evolving e-Khata portal in Bengaluru coupled with lengthy approval processes—that of land use, building plan and layout, fire safety, etc—have been hitting real estate developers' launch schedule, project viability, and balance sheets.

- PRACHI PISAL

"Land acquisition complexities, delayed environmental clearances, and slower municipal approval processes continued to cause project delays and added execution risk. While regulatory reforms like Rera have improved transparency, procedural hurdles remain particularly acute for new developments and smaller players," a Savills report noted.

Pending environmental approvals

According to an August 2024 order issued by the National Green Tribunal (NGT), environmental clearances for any real estate project with a built-up area of over 20,000 square meters and situated within a 5-kilometer radius of an eco-sensitive zone must be approved by the Centre. Mumbai Metropolitan Region (MMR) is said to be the most affected market by this decision.