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Home >Industry >Infrastructure >MahaRERA invokes force majeure, to extend project completion deadline by six months

Bengaluru: The Maharashtra Real Estate Regulatory Authority (MahaRERA) on Friday invoked the force majeure clause, following the second wave of the pandemic, to extend the registration validity of projects for which completion date, revised completion date and extended completion date expires on or after 15 April 2021, by six months.

The automatic extension will not be available to projects that were to be completed before 15 April 2021. Property developers in Maharashtra will get another six months to complete their projects providing much relief.

“The time limits for compliances under Section 11, which become due anytime during force majeure period, shall stand automatically extended for a period till the expiry of force majeure period," MahaRERA secretary Vasant Prabhu said in a notification.

Though the impact of the second wave of covid-19 was less than in 2020, project construction suffered, and project sites came to a standstill due to non-availability of labour and restricted movement of building material etc, particularly in Maharashtra.

The second wave has been a major challenge for real estate, said Niranjan Hiranandani, national president of industry body Naredco.

“As the lockdown which was imposed in Maharashtra from April 2021 impacted construction sites, it had been represented by real estate bodies, including Naredco that a time extension needed to be granted vis-à-vis regulatory aspect of time limitation.

“It is a move in the right direction. Real estate has faced various challenges during the pandemic, most important being reverse migration of labourers to their native places and break in supply chain of construction material. Activities at various construction sites across the country were severely impacted. In Maharashtra, the move by MahaRERA, extending invocation of force majeure for six months is a welcome step," he added.

This would be the second extension that RERA has provided in the wake of the pandemic and the national lockdown that was announced by the government last year.

In 2020, the ministry of housing & urban affairs (MoHUA) advised states to extend the completion and registration validity timelines for projects by six months across the country by treating the pandemic as a force majeure event, under the Real estate (Regulation & Development) Act, 2016.

MahaRERA had extended the projects' registration validity by six months until 14 September 2020.

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