Mumbai: Mumbai's real estate sector faces fresh uncertainty after the Defence Ministry directed an immediate halt to construction projects near defence establishments that do not have a No-Objection Certificate (NOC) from the local military authority, even if they have secured approvals from the BMC or other government agencies.
Developers Warn Of Widespread Project Disruption
The directive has raised concerns among developers and homebuyers, particularly in suburban areas located near ordnance depots. Industry representatives warn that the order could disrupt several ongoing projects and affect families who have already invested in homes.
Yomesh Rao, President of the Practising Engineers, Architects and Town Planners Association (India), said more than 120 projects in Malad and Kandivali alone are at different stages of construction, while at least 50 additional developments are in the pipeline, reported The Times of India.
"There are 120+ projects in Malad-Kandivali alone at various stages of construction. Also, at least 50 more are in the pipeline, with some even razed," Rao said, according to the report. He warned that the uncertainty surrounding defence clearances had continued for more than 16 years, leaving developers and homebuyers unsure about the applicable requirements and the steps needed to secure approvals.
State Directs BMC To Halt Construction
On Wednesday, the Maharashtra government's Urban Development Department (UDD) wrote to the BMC commissioner, directing the civic body to implement the Defence Ministry's latest instruction.
The communication said construction on projects approved without an NOC from the local military authority must be stopped immediately. It also stressed that the ministry's NOC guidelines should be followed in the larger interest of protecting the security requirements of the armed forces.
Dispute Over Defence Clearance Requirements
The latest directive followed correspondence between the state government and the Defence Ministry. In a letter sent last month, Additional Chief Secretary Aseem Kumar Gupta had argued that permissions granted under the state's current development control regulations become 'committed development', making it difficult for civic authorities to withdraw or reverse approvals once issued.
Gupta's communication also highlighted confusion over the legal requirement for defence clearances. It argued that planning authorities were not required to insist on an NOC unless specifically mandated under the Works of Defence Act, 1903, or another applicable law, and noted that there was no operative Defence Ministry circular governing the requirement.
The ministry, however, rejected this interpretation and maintained that its NOC guidelines remained applicable, reiterating the need for clearances from local military authorities.
The dispute has previously affected projects in Mumbai. In 2024, the BMC declined to issue a stop-work notice to an under-construction Godrej Properties project on Akurli Road in Kandivali East, despite an objection from the Army's Central Ordnance Depot. The depot had maintained that the project site was within 500 metres of its perimeter wall.
Earlier Restrictions Add To Uncertainty
Construction restrictions near defence establishments have also undergone several changes. In January 2023, the Defence Ministry announced a relaxation for civilian construction near naval installations, including those in Mumbai, reducing the restricted zone from 500 metres to 50 metres. However, the relaxation was then kept in abeyance, bringing back uncertainty for redevelopment and new projects.
The latest order has once again put projects near defence establishments under scrutiny, with developers and homebuyers awaiting clarity on the way forward.
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