Restrictions imposed around the Pallikaranai Ramsar site could impact nearly ₹72,000 crore worth of economic activity in Chennai and affect more than one lakh patta landowners, according to CREDAI Chennai. The real estate industry body on Tuesday urged the Tamil Nadu government to review the blanket one-kilometre development freeze around the internationally recognised wetland.
Economic Impact Breakdown
CREDAI’s assessment detailed a three-part economic impact:
| Category | Estimated Loss (₹ crore) |
|---|---|
| Real estate business (stalled) | 51,735.88 |
| Direct revenue loss to government (stamp duty, registration charges, levies) | 10,995.38 |
| Indirect economic impact | 8,795.10 |
| Total | 71,526.36 (≈ ₹72,000 crore) |
The developers’ body said the current restrictions have effectively stalled real estate activity in parts of Chennai’s southern growth corridor over the past nine months, affecting residential and commercial developments, industries, financial institutions and property owners.
CREDAI’s Concerns Over Demarcation
Mehul H Doshi, President of CREDAI Chennai, said the industry body’s concern is not with the 698-hectare Pallikaranai Swamp Reserve Forest — protected since 2007 — or even the 1,248-hectare Ramsar site. Instead, the issue relates to an additional 550 hectares that has been brought under the notification without clear identification or survey number demarcation. More than one lakh patta owners have been impacted because of this uncertainty, Doshi said.
Planning Freeze and Infrastructure Projects
Viswajith Kumar, Vice-President of CREDAI Chennai, said the uniform one-kilometre influence zone around the Ramsar site has created a planning freeze over a much larger urban area without adequate scientific assessment. The entire Pallikaranai region, which includes Old Mahabalipuram Road (OMR), has witnessed a virtual halt in real estate activity for the past nine months after the Chennai Metropolitan Development Authority (CMDA) suspended approvals and sanctions within the notified area.
Kumar pointed out that the one-kilometre zone covers several major public infrastructure projects, including:
- Chennai Metro Rail Phase II stations
- Existing MRTS stations
- The proposed integrated transit hub at Sholinganallur
Separate from Brigade Enterprises Case
Last month, the State Environment Impact Assessment Authority revoked the environmental clearance granted to Brigade Enterprises for a residential project near the Pallikaranai marsh after finding that construction had commenced without mandatory approval from the Tamil Nadu State Wetland Authority. CREDAI said their representation is unrelated to that case and is focused on safeguarding the interests of genuine patta holders and ensuring regulatory clarity.
Call for Scientific Assessment
CREDAI argued that the influence zone should be determined through hydrological studies, drainage patterns, topography, land-use assessment and field validation rather than by applying a blanket buffer. The industry body’s representation urges the Tamil Nadu government to adopt a more targeted approach that balances environmental protection with the economic rights of landowners and the continuity of public infrastructure projects.
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