Mumbai Real Estate On Edge: Defence Ministry Orders Halt To Construction Without Military NOC; 170+ Projects In Malad-Kandivali At Risk

Mumbai's real estate market is facing uncertainty following a Defense Ministry directive to halt construction without a military no-objection certificate (NOC), even if approvals have been obtained from the Brihanmumbai Municipal Corporation (BMC) or other government agencies. This move has raised concerns among developers and homebuyers, particularly in suburban areas near defense installations.

Yomesh Rao, President of the Practising Engineers, Architects and Town Planners Association (India), revealed that over 120 projects in Malad and Kandivali are currently at various stages of construction, while at least 50 more developments are in the pipeline. Rao expressed concern over the ongoing uncertainty, emphasizing that the requirement for defense clearances has been a source of confusion for developers and homebuyers for more than 16 years.

The Maharashtra government's Urban Development Department (UDD) has directed the Bangalore Municipal Corporation (BMC) to implement the Defense Ministry's new instruction, requiring the immediate cessation of construction on projects approved without an NOC from the local military authority. The BMC has already demolished illegal constructions in 13,211 out of 2.14 lakh complaints, according to an RTI disclosure.

The latest directive follows correspondence between the state government and the Defense Ministry, which highlighted confusion over the legal requirement for defense clearances. While the state government maintains that planning authorities must insist on an NOC unless specifically mandated under the Works of Defence Act, 1903, the Defense Ministry insists that its NOC guidelines remain applicable.

The issue has previously affected projects in Mumbai, with the BMC declining to issue a stop-work notice to a Godrej Properties project in Kandivali East despite an objection from the Army's Central Ordnance Depot. As developers and homebuyers await clarity on the way forward, the latest order has once again put projects near defense establishments under scrutiny.