India's Real Estate Projects Face Extended Stop-Work Orders

The Kolkata Municipal Corporation (KMC) has kept its stop‑work order on nearly 500 under‑construction high‑rise projects until safety audits are completed, despite a four‑month extension granted by the Ministry of Housing and Urban Affairs (MoHUA) under a force‑majeure provision linked to supply‑chain disruptions from the Iran conflict. Only projects that clear the audit may resume, while new developments must submit a compliance undertaking. Industry groups warn the continued suspension could delay completions by up to ten months, and the Confederation of Real Estate Developers’ Associations of India (CREDAI) is seeking a longer extension.

Separately, the Supreme Court of India ordered that no work order be issued for the MHADA‑led Bandra Reclamation redevelopment project until at least 13 August 2026, extending an earlier protection from the Bombay High Court. The case involves a 98.27‑acre reclamation and a 34.33‑acre layout intended for medium‑ and low‑income housing societies, with Adani Properties identified as the highest bidder. Petitioners argue the scheme violates constitutional rights and improperly includes high‑income units. The Court set timelines for filing counter‑affidavits and a hearing on the matter.