Mumbai, a bustling metropolis and financial hub of India, is renowned for its soaring skyscrapers and rapidly evolving skyline. However, not all areas of this city are free for development. In fact, several localities have stringent restrictions on construction due to the presence of defense facilities, aviation regulations, or environmental protection laws. This blog delves into the specifics of these restrictions and their implications for real estate development in Mumbai.
The Case of Godrej Properties:
Godrej Properties Limited (GPL), a prominent real estate developer, recently found itself in a challenging situation when the defense authorities objected to their housing project, Godrej Reserve, in Kandivali. The project was halted due to its proximity to the Central Ordnance Depot (COD) complex, raising significant concerns among developers and investors alike.
This incident is not isolated. Several areas in Mumbai face similar restrictions that can impact the feasibility and timeline of real estate projects.
Understanding Construction Restrictions:
According to guidelines issued by the Government of India in May 2011, construction activities are not permitted within 100 meters of the perimeter wall of defense establishments. Furthermore, any construction within 100 to 500 meters requires a No Objection Certificate (NOC) from the defense department and is limited to a maximum of four storeys.
Key Areas with Restrictions:
Kandivali and Malad
These areas are in close proximity to the COD, resulting in height restrictions. Numerous redevelopment projects in these localities are delayed due to these limitations.
Juhu
The Juhu area faces severe restrictions due to its closeness to defense facilities, leading to a halt in redevelopment projects worth approximately ₹20,000 crore.
Dahisar
New height restrictions imposed by the Airports Authority of India (AAI) since January 2021 have impacted construction activities within a 2-km radius around Dahisar toll naka, affecting projects worth nearly ₹7,000 crore.
Ghatkopar and Colaba
The Indian Navy has imposed strict regulations on construction within 50 meters of its installations, necessitating NOCs for any new developments.
Mahim
Coastal Regulation Zone (CRZ) norms heavily restrict construction in areas close to the sea to protect coastal ecology. Despite some relaxations, redevelopment in areas like Mahim and Charni Road remains challenging.
Legal and Administrative Perspectives:
Legal experts highlight the complexity of resolving issues related to redevelopment in restricted zones. While courts are limited in their ability to interfere with administrative decisions, there is a call for policy solutions to relocate affected residents to Project Affected People (PAP) units.
Nilesh Gala, a Mumbai-based lawyer, suggests, "We need a balanced approach that serves the interests of both affected residents and national security. Relocating residents from stuck redevelopment projects to PAP units could be a viable solution."
Moving Forward:
The challenges faced by developers in Mumbai due to construction restrictions underline the need for careful planning and compliance with regulatory frameworks. For real estate developers, understanding these restrictions is crucial for navigating the complex landscape of Mumbai’s real estate market.
Conclusion:
Mumbai’s real estate sector is vibrant but fraught with regulatory hurdles in specific areas due to defense and environmental concerns. Developers must stay informed about these restrictions and work collaboratively with authorities to find feasible solutions that ensure both progress and compliance. For investors and homebuyers, being aware of these factors can help make more informed decisions in the dynamic market of Mumbai.
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