Real estate developers body NAREDCO writes to Defence Ministry over stalled redevelopment of 5,000 projects in Mumbai

(Representational image)

The Maharashtra arm of the National Real Estate Development Council (NAREDCO), the apex body of real estate developers, has written to the Ministry of Defence over the stalled redevelopment of around 5,000 buildings in India's financial capital.

The letter has sought a resolution to the order that put on hold its December 2022 order lifting restrictions for construction in close proximity of defence establishments.

The ministry on February 23 put on hold the order dated December 23, 2022, that paved the way for the redevelopment of more than 5,000 buildings, a project that was stuck in the absence of a no-objection certification (NOC) from the defence establishments.

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Sandeep Runwal, president of NAREDCO Maharashtra, confirmed to Moneycontrol about writing to the defence ministry. He said, “We request the ministry for a meeting to find a solution for the construction of buildings keeping in mind security. We are hopeful of resolving this issue where 5,000 projects are impacted.”

The letter added, “In the circular dated December 23, 2022, the Ministry of Defence has listed various Defence establishments/instalments under the management of NOC for construction outside 50 meters from the outer wall of these establishments The circular under reference is keeping the previous order under abeyance which will adversely impact several ongoing and completed redevelopment projects in the vicinity of defence establishments.”

It is estimated that the previous order, which was hailed as a 'landmark' by the real estate industry, would have benefited around 5,000 redevelopment projects in Mumbai which had been stalled since May 2011. The tenants of the dilapidated buildings faced difficulties arising from the cutting off of water supply and electricity due to the non-issuance of NOC for redevelopment. The abeyance order will again stall the redevelopment projects and adversely affect all the stakeholders involved, reads the letter dated March 1, 2023, signed by Runwal.

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In Mumbai, redevelopment and construction activities are currently affected in areas including Colaba, Malad, Ghatkopar, Mankhurd, Powai and Worli. Further, other defence establishments in Maharashtra are located in cities like Pune, Nashik, Nagpur, Kolhapur, Bhusawal, etc.

A developer from the suburbs, who asked not to be named, said, “The impacted projects are scattered in Mumbai, and the project cost for these projects is humungous. Not only loss to the citizens, but it is a big revenue loss for the state government and the local municipal corporation in the form of revenue it will receive from approval of these projects.”

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