Construction ban in Delhi-NCR will delay projects: Real estate developers 

With the air quality deteriorating to `severe’ levels in the national capital region, the Commission for Air Quality Management (CAQM) has invoked stage III of the Graded Response Action Plan (GRAP), which includes a ban on all non-essential construction and demolition activities in Delhi-NCR.

With the air quality deteriorating to `severe’ levels in the national capital  region, the Commission for Air Quality Management (CAQM) has invoked stage III of the Graded Response Action Plan (GRAP), which includes a ban on all non-essential construction and demolition activities in Delhi-NCR.

Reacting to the move, real estate developers said the ban will delay delivery of projects, and impact builders as well as homebuyers, as  a one-month ban on construction, on average,  delays a project by at least two to three months. They added that authorities should adopt a case-by-case approach when implementing air pollution regulations, and control vehicular emissions and roadside dust, which are the main sources of pollution.

Delhi's air quality index (AQI) stood at 402 at 5 pm on 2nd November, 2023. Apart from a ban on non-essential construction and demolition activities, GRAP-III also includes a ban on the entry of diesel light commercial vehicles (LCVs), trucks, and medium and heavy goods vehicles registered outside Delhi (except those involved in the provision of essential services).

Also Read: Delhi-NCR Pollution: Air quality dips to 'severe' zone for first time this season

GRAP action depends on four stages of pollution: Stage I - 'poor' (AQI 201-300); Stage II - 'very poor' (AQI 301-400); Stage III - 'severe' (AQI 401-450); and Stage IV - 'severe plus' (AQI above 450).

Impact on real estate

Manoj Gaur, chairman, Confederation of Real Estate Developers' Associations of India (CREDAI)-National, said the real estate sector fully supports the authorities’ efforts to curb rising pollution, but it does have certain reservations.

“A one-month construction ban will lead to delays of at least two to three months in project completion. The real estate sector is concerned that blanket bans, while addressing pollution, may lead to increased project costs and affect the livelihood of construction workers,” Gaur told Moneycontrol.

He said that despite these challenges, developers proactively undertake measures like sprinkling water regularly and installing anti-smog machines to mitigate pollution.

He added that authorities should adopt a case-by-case approach as developers who follow pollution control guidelines should not face unnecessary restrictions.

“Additionally, we propose that RERA-registered projects (commercial and residential buildings) should be considered public interest projects and be exempt from pollution control guidelines. This approach aims to balance environmental concerns with the need to sustain construction activity, safeguard project timelines, and protect the interests of both homebuyers and developers,” Gaur explained.

Homebuyers’ take

Rajiva Singh, president of the Noida Federation of Apartment Owners Associations (NOFAA), said there is a need to find ``quick, sustainable solutions” in order to have good air.

“Such bans are required to bring air quality under control, but this would also further delay already-delayed housing projects. The unfortunate part is that every year the government makes commitments to reduce pollution levels, but with no outcome. Political will to find sustainable solutions is missing,” Singh said.

Adwitiya Sharma, a homebuyer in Gurugram, said that he has invested in a project coming up along the Dwarka Expressway. The project is already running behind schedule, and would get further delayed due to this move.

Also Read: Delhi-NCR air pollution: 'Not a hill station,' says internet as smog struggles return

“I was scheduled to get possession of my flat in July this year, but it is still not completed. The CAQM ban on construction activities will delay the delivery of my flat further,” Sharma said.