The imposition of restrictions around the Pallikaranai Ramsar site could potentially jeopardise ₹72,000 crore worth of economic activity in Chennai, with over one lakh patta landowners likely to be affected, according to CREDAI Chennai.

Economic Impact of Ramsar Site Restrictions

CREDAI Chennai's assessment reveals that the planning freeze around the Ramsar site could impact ₹51,735.88 crore worth of real estate business, resulting in a direct revenue loss of ₹10,995.38 crore to the government through stamp duty and registration charges. The indirect economic impact is estimated to be ₹8,795.10 crore, cumulatively affecting nearly ₹72,000 crore worth of economic activity.

The real estate industry body has expressed concerns that the uniform one-kilometre influence zone around the Ramsar site has created a planning freeze over a larger urban area without adequate scientific assessment. The freeze has stalled real estate activity in parts of Chennai's southern growth corridor, including the Old Mahabalipuram Road (OMR) region, over the past nine months.

Impact on Landowners and Infrastructure Projects

According to Mehul H Doshi, President of CREDAI Chennai, more than one lakh patta owners have been impacted due to the uncertainty surrounding the additional 550 hectares brought under the notification without clear identification or survey number demarcation. The one-kilometre zone also covers several major public infrastructure projects, including Chennai Metro Rail Phase II stations and the proposed integrated transit hub at Sholinganallur.

  • Estimated economic impact: ₹72,000 crore
  • Real estate business impact: ₹51,735.88 crore
  • Direct revenue loss to government: ₹10,995.38 crore
  • Indirect economic impact: ₹8,795.10 crore
  • Number of patta landowners affected: over one lakh

Viswajith Kumar, Vice-President of CREDAI Chennai, suggests that the influence zone should be determined through hydrological studies and land-use assessment rather than a blanket buffer. The industry body's representation aims to safeguard the interests of genuine patta holders and ensure regulatory clarity, unrelated to specific cases like the recent revocation of environmental clearance for Brigade Enterprises' residential project.