Real Estate

Developers commend Centre’s move to invoke force majeure under RERA

Anil Urs Bengaluru | Updated on May 14, 2020

The extension for various statutory compliances under the Real Estate Regulation and Development Act (RERA) will further aid in providing ease to developers and buyers, said JC Sharma, Vice Chairman & Managing Director, Sobha Limited.

“The additional support of one-year extension provided by the government for loans by NBFCs to the commercial real estate sector from the date of commencement for commercial operations (DCCO) will spur growth and de-stress the sector,” Sharma said, reacting to the first tranche of the ₹20-lakh crore package announced by Union Finance Minister on Wednesday.

Terming the steps by the government towards the real estate sector laudable, Sharma said the sector contributes significantly to the growth and employment of the economy.

“In support of the sector, an announcement on extension of registration and completion dates of projects suo moto by six months for all registered projects expiring on are after March 25, without individual application, is very thoughtful,” he said.

“Further, the Ministry of Housing and Urban Affairs will advise States/UTs and their regulatory authorities to treat Covid-19 as an event of force majeure under RERA. The regulatory authorities can extend this as required for three months and a fresh ‘Project Registration Certificate’ can be issued with revised timelines,” he added.

 

‘Big breather’

M Murali, Chairman and Managing Director, Shriram Properties said “Awarding a stimulus package in the order of ₹20 lakh crore alongside big reforms at this crucial hour is a big breather for the nation as a whole.”

“As real estate developers, we welcome the Centre’s move in advising the States to invoke the force majeure clause under RERA and allowing extension of project completion timelines by six months. An additional three-month leeway to this extension has also been allowed under the discretion of State regulators. We are hopeful that a fiscal relief will follow, given that real estate is the second-largest employment-generating sector in India,” he added.

Surendra Hiranandani, Chairman and Managing Director, House of Hiranandani

said “During the lockdown, the construction industry has nearly come to a standstill thus negating the green shoots that had just begun appearing prior the pandemic came to the fore. In order to tackle the subdued demand from hom-buyers during and post Covid-19, reduction in interest rates on home loans will encourage fence-sitters to act quickly to invest in a property.”

Published on May 14, 2020

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