MCGM Declines Stop Work Notice for Godrej Properties' Kandivali Project

Municipal Decision Favors Continuation of Construction
The Municipal Corporation of Greater Mumbai (MCGM) has decided against issuing a stop work notice for Godrej Properties’ ongoing residential project in Kandivali. This decision comes despite a request from the defence ministry’s Central Ordnance Depot (COD), which had raised concerns about the project's proximity to the Kandivali COD complex.

Defence Ministry Concerns
The defence ministry unit had previously written to the civic authority, requesting a suspension of work at the 'Godrej Reserve' project, citing its closeness to the COD complex. The project spans an 18.6-acre land parcel and is estimated to generate Rs 7,000 crore in revenue. According to the company’s FY24 regulatory filing, approximately 1.91 million sq ft of the project has been launched, with bookings for 1.51 million sq ft worth Rs 2,693 crore already secured.

MCGM's Legal Standpoint
The MCGM, in its response to the COD, highlighted that numerous ongoing developments are within the vicinity of the COD in Kandivali and Malad. The civic authority noted that these projects comply with the circular dated October 21, 2016, which allows construction beyond 10 meters from defence establishments. Therefore, issuing stop work notices to such projects would not be in accordance with the law.

Official Statement
The letter from MCGM’s building proposal department, dispatched to the COD on Tuesday, stated: “The construction being undertaken is permissible under the provisions of the Maharashtra Regional Town Planning Act, 1966, and Development Plan, 2034, which was formulated after considering all aspects of safety and security. We have not received any suggestion/objection while making the development plan 2034, and there is vast existing urban settlement and construction in the vicinity.”

Defence Ministry Guidelines
In a note issued in May, the COD had pointed out that the Godrej plot is within 500 meters of the Kandivali complex, referring to the union government’s May 2011 guidelines. These guidelines prohibit construction within 100 meters of any defence establishment and limit construction to a maximum of four storeys within 100-500 meters, pending a no-objection certificate (NOC) from the defence ministry. However, the project's permission was granted during a transitional period between the Bombay High Court's decision to discontinue the NOC requirement and the Supreme Court’s ruling to uphold it in February.

Godrej Properties' Project Potential
Godrej Properties acquired the plot in December 2022, planning a development potential of about 3.72 million sq ft with an estimated revenue potential of nearly Rs 7,000 crore. The project will mainly feature premium residential apartments and some retail units, benefiting from a prime location with access to the Western Express Highway, metro, and suburban railway stations.

Record Performance
Godrej Properties reported its best-ever quarterly and annual performance in terms of sales bookings, net profit, collections, project deliveries, and business development for the period ending March.

The decision by MCGM to continue Godrej Properties' Kandivali project underscores the regulatory balance between urban development and security considerations, paving the way for further advancements in Mumbai's real estate landscape.