SC ruling on forest land: Which realtors will gain

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26 Aug, 2025 12:21

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The Supreme Court order on Thursday has freed over 6.4 lakh acres of lands for development by removing the 'private forest' tag. The SC order quashed the Bombay High Court ruling and the prior notices issued by the state government that had refrained development in the bordering areas of the Sanjay Gandhi National Park.

Also Read: SC frees pvt forest land for realty deals; Oberoi in focus

Over five lakh residents and many real estate developers, who were linked to these lands, will benefit from the move. These areas included Ghodbunder (Thane), Dahisar, Borivali, Kandivali, Goregaon Mulund, Nahur and Mahul.

The real estate developers who will heave a sigh of relief post this order are Godrej Properties, Oberoi Realty, Runwal Group, Nirmal Lifestyles, Atithi Builders and others.

We take a look at the chronology of the events, what the SC order says and how it will impact the real estate players caught in the legal tangle.

What does the SC order say?

The Supreme Court order has quashed Bombay HC judgment that upheld the state government's claim terming the lands owned by petitioners as forest land.

The petitioners include Oberoi, Godrej, Bombay Real Estate Development Company, and other developers, Vasant Garden CHS and Hillside Residents Welfare Association.

What it means and who will benefit from it:

*The SC order means the huge swathe of land treated as 'private forest' will be free for development.

*It will provide relief to over 5 lakh residents who had bought flats in buildings on such plots.

*The around Rs 100 crore fine that the government had levied on the residents and developers of such buildings will have to be returned.

*Plots owned by big realty developers like Godrej, Oberoi, Runwal among others will be free for development.

What did the Bombay HC order say?

In 2008, the Bombay HC dismissed the petitions filed by the affected developers like Godrej, Oberoi and others on the state government's claim that the land on which the development was going on was a 'private forest land'. This resulted in BMC refusing the construction permission to realtors, thus stalling many projects.

How it all started?

*1957, the state government had asked owners of the land to prove their ownership. Notices were also served to the owners of the litigated areas, however, hearing never held and property transaction went on. The residents were also charged property tax for the deals.

*Between 1967 and 1991, Brihanmumbai Municipal Corporation (BMC) termed these areas as residential and even allowed buildings to come up.

*In 2001-02, the Bombay Environment Action Group filed a PIL in the Bombay HC on the issue of encroachment in the private forest land.

*In 2005, HC asked the state to demarcate the forest land area and issue a list of encroachment on private forest land.

*In 2006, resident groups formed the Hillside Welfare Association and filed a counter PIL challenging the action.