New Delhi: Finance Minister Nirmala Sitharaman on Wednesday (May 13) gave relief to real estate developers by extending the deadline for completion of projects by up to six months in the wake of coronavirus COVID-19 outbreak.
The relief will be extended to all the registered projects under the Real Estate (Regulation and Development) Act, RERA, expiring on or after March 25, the date from which national lockdown to control coronavirus came into effect.
Notably, the real estate industry has been demanding that the deadline for completion of projects should be extended by at least six months as construction work came to a halt due to lockdown.
Sitharaman said the Ministry of Housing and Urban Affairs will advise States and their regulatory authorities to "treat COVID-19 as an event of Force Majeure under RERA", adding that the regulators can extend the registration and completion date suo motto by six months for all registered projects expiring on or after March 25 without individual applications.
The Finance Minister said, "These measures will de-stress real estate developers and ensure completion of projects so that home buyers are able to get delivery of their booked homes with new timelines."
Extension of Registration and Completion Date of Real Estate Projects under RERA
1. Adverse impact due to COVID and projects stand the risk of defaulting on RERA timelines. Timelines need to be extended. Ministry of Housing and Urban Affairs will advise States/UTs and their Regulatory Authorities to the following effect.
2. Treat COVID-19 as an event of 'Force Majeure 'under RERA.
.@MoHUA_India will advise States/UTs and their Regulatory Authorities to extend the registration and completion date suo-moto by 6 months for all registered projects expiring on or after 25th March, 2020 without individual applications pic.twitter.com/SBChFjXVGv
— PIB India #StayHome #StaySafe (@PIB_India) May 13, 2020
3. Extend the registration and completion date suo-moto by 6 months for all registered projects expiring on or after March 25, 2020 without individual applications.
4. Regulatory Authorities may extend this for another period of up to 3 months if needed
5. Issue fresh 'Project Registration Certificates' automatically with revised timelines.
6. Extend timelines for various statuary compliances under RERA concurrently.
These measures will de-stress real estate developers and ensure completion of projects so that homebuyers are able to get delivery of their booked houses with new timelines.
Notably, the Ministry of Housing and Urban Affairs will issue an advisory to real estate regulators of all states and Union Territories, to treat COVID-19 as an act of God so that 'force majeure' clauses under RERA can be invoked for providing relief to builders in completion of projects.