RERA-compliant projects should be exempt from construction ban, say realtors

As Delhi-NCR remained enveloped in a thick grey haze on account of pollution for the third straight day on November 19, real estate developers said that while they are willing to cooperate with the government agencies in adhering to the GRAP 4 norms, a blanket ban on construction activity will not only impact project timelines but also budgets and developers’ obligations to financial institutions and that RERA-compliant projects should be exempt from the Graded Response Action Plan guidelines.
G Hari Babu, National President of NAREDCO said that RERA-approved projects, which adhere to stringent pollution-control measures, should not be grouped under this blanket ban. “These projects already comply with strict environmental norms, ensuring minimal dust and pollution during their execution. Halting such regulated construction activities disrupts project timelines, impacts financial obligations, and causes ripple effects across the entire ecosystem of suppliers, contractors, and laborers,” he said.
Also Read: GRAP 4 curbs in Delhi-NCR: Realtors say temporary halt to construction work factored in their contingency plans
“The decision to ban all construction activities in Delhi under GRAP-IV measures, including critical infrastructure projects like highways, roads, and pipelines, reflects the urgent need to combat the region’s deteriorating air quality. While the construction industry understands the importance of addressing environmental challenges, it is equally important to consider the broader implications of such measures,” he said.
“Pollution control is essential, and CREDAI extends its support to the CAQM mandate. However, it should also be understood that real estate projects already adhere to stringent pollution control standards as required by RERA. The real estate sector, being one of the nation’s largest employers of unskilled labour, also suffers financially, and therefore, such activities that do not increase dust levels, NGT can consider them to keep outside the ambit of GRAP,” said Manoj Gaur, president, CREDAI-NCR.
Also Read: GRAP 3 curbs in Delhi-NCR amid ‘severe’ AQI may delay real estate projects: Credai and Naredco
It should also be understood that each halt impacts project timelines, budgets, and developer obligations to financial institutions, he said.
One of RERA’s stringent conditions includes timely delivery of projects, and in case of any delay, a developer has to pay a late delivery penalty, which raises the cost of the project. With a large number of units currently under construction and customers eagerly waiting for their homes, exempting RERA-approved projects, especially those nearing their completion, from GRAP could balance public health needs with economic stability by sustaining essential development work, he added.
It is true that pollution has the unfortunate tendency of becoming an accepted feature for urban dwellers. Real estate prices in most Indian cities are not dictated by environmental factors as much as by affordability and their ability to provide employment, said Prashant Thakur, director and head – research, ANAROCK Group.
The Delhi government’s Stage 4 of the Graded Response Action Plan (GRAP) came into effect from 8 am on November 18. The CAQM issued the order due to the deteriorating air quality in Delhi.
“Ban C&D activities, as in the GRAP Stage-III, also for linear public projects such as highways, roads, flyovers, over bridges, power transmission, pipelines, tele-communication etc,” the CAQM order said.
Delhi’s air quality is categorised into four categories according to the National Capital Region’s (NCR) Graded Response Action Plan (GRAP): Stage I is “poor” (AQI 201-300); Stage II is “very poor” (AQI 301-400); Stage III is “severe” (AQI 401-450); and Stage IV is “severe plus” (AQI >450).
According to Akash Vashishtha, an environment lawyer, any activity that has the potential of causing pollution or is a direct source of PM10 levels should be governed by the pollution control regime that includes all orders and legislations dealing with air pollution. It is also important to note here that that Article 21 that guarantees the Right to Life to citizens also includes the right to a clean and safe environment. “This is a Fundamental Right that precedes any other legal right granted to a person by any enactment or other instrument,” he opined.