All RERA registered projects get an extension of 6 months for completion; Covid19 to be treated as 'Force Majeure'

New Delhi: All RERA registered real estate projects in the country will get an extension of 6 months in registration and completion dates suo moto. The extension will be for those projects whose expiry dates are on or after 25 March 2020. The developers need to apply for extension individually for their projects to get this benefit. 

Finance Minister Nirmala Sitharaman today said that the Ministry of Housing and Urban Affairs will soon issue an order to states and their regulatory authorities to extend the dates of the projects.

She said that due to the outbreak of corona virus, the projects have a risk of defaulting on their promised deadlines under RERA. Hence, the deadlines need to be extended.

Ministry of Housing and Urban Affairs will also advise states and RERA authorities to treat corona virus outbreak as ‘Force Majeure’ under RERA.

Taking bold decisions regarding the real estate industry, the Minister also said the state RERA authorities can extend the deadline for the project by another three months if they feel so.

The RERA authorities will issue fresh "project Registration Certificates" automatically with the changed timelines. The statutory compliances will also get extended now on their own. 

The Minister said that these steps will de-stress the developers and real estate companies. This will also help in proper completion of projects.

Meanwhile, she also said Rs 45,000 crore liquidity will be provided to NBFCs by way of partial credit guarantee scheme. She also said Rs 30,000 crore will be provided to NBFC, housing finance companies (HFCs) and MFIs through debt papaers so that they can lend afresh to small and medium companies and individuals. 

The decision of the government has been welcomed by the industry.

This is a big announcement by the Finance minister and will immensely help the industry since the construction has been stopped in the country due to the lockdown, said Anuj Puri, Chairman, ANAROCK Property Consultants. 

“The suo moto extension of the registration and completion dates by six months will help the industry cover for its losses as a result of the absence of the construction during the lockdown. However, an extension of a year is what the industry wanted and had asked for,” said Ankush Kaul, President (Sales & Marketing) Ambience Group.