Supreme Court construction ban may take toll on development
Development could grind to a halt in Maharashtra, Madhya Pradesh, Uttarakhand, Chandigarh and elsewhere following a Supreme Court ban on construction in parts of the country, delaying deliveries and hurting property companies and allied industries besides putting people out of work.
The real estate industry said it’s being punished for state inaction over solid waste management. “It will choke supply, and impact home seekers. Effectively, home buyers will suffer just because some state governments have not formally notified the policy,” said Niranjan Hiranandani, national president of lobby group National Real Estate Development Council (Naredco).
“The intention behind the order is good from a long-term perspective, but a blanket ban stopping all construction will have a negative impact on housing.”
The SC has banned construction in several states and union territories because they haven’t put in place rules on solid waste management.
The biggest impact is seen on Maharashtra, home to the high-value property markets of Mumbai and Pune, although the state has prepared a policy on the matter and may therefore be able to get relief on this score, developers said.