Understanding Environmental Clearance Requirements
Environmental Clearance (EC) is a mandatory approval for large construction, township, and infrastructure projects under the EIA Notification, 2006, as amended. In Maharashtra, EC is issued by the State Environment Impact Assessment Authority (SEIAA) for most real estate projects, while very large projects fall under the MoEF&CC (Central Authority). Investors must assess whether the land parcel and proposed development fall under EC norms, as even early-stage planning may require environmental compliance to avoid regulatory delays.
01
Applicability Based on Project Size and Category
EC applicability depends on built-up area, plot area, and project type. Residential, commercial, industrial, logistics parks, and township projects each have different notification thresholds. For example, projects over 20,000 sq. m. built-up area require EC at the state level. Projects exceeding higher limits fall under Category A requiring central-level clearance. Investors must confirm the classification early, as financial institutions require proof of EC eligibility before funding large real estate ventures.
02
Critical Environmental Studies and Technical Assessments
For EC approval, developers must prepare several technical studies, including hydrology, traffic impact, water balance, sewage treatment, solid waste management, DG emissions, and environmental sustainability planning. Maharashtra authorities place strong emphasis on rainwater harvesting, STPs, solar provisions, green belts, and flood zone assessments. Investors benefit from reviewing these studies to understand long-term operational costs and environmental compliance liabilities associated with the project.
03
Impact of EC on Permissions, Construction, and Handover
No major real estate construction can legally begin without receiving the EC letter and uploading it to the Parivesh portal. Authorities like MPCB, local planning bodies, municipal corporations, and Collector offices will not issue further permissions—such as Commencement Certificate (CC) or Occupancy Certificate (OC)—without EC compliance. Violating EC conditions may attract penalties, work stoppage orders, or litigation in NGT or High Court. Investors need to verify EC status before purchasing or developing any land.
04
Post-EC Compliance, Monitoring, and Investor Safeguards
After obtaining EC, the project must follow strict compliance conditions including quarterly reporting, green cover development, STP operations, and environmental audits. Compliance reports must be regularly uploaded to the Parivesh portal and may be inspected by SEIAA or MPCB. For investors, monitoring EC compliance ensures that the project remains legally secure, avoids NGT penalties, and maintains steady progress. Non-compliance significantly affects timelines, project value, and long-term returns.
