All real estate projects both residential, commercial registered under Real estate Regulatory authority which stand to be completed on or after March 25, 2020 will get a six month extension as the lockdown to contain the covid 19 pandemic that stopped the construction work across the country.
Due to the corona virus outbreak, all projects stand the risk of defaulting RERA timelines, Finance Minister Nirmala Sitharaman said while announcing details of the Covid 19 economic package announced by Prime Minister Shri Narendra Modi earlier.
The Housing affairs ministry will advise all states and union territories and the authorities to
· Treat Covid 19 as a force majeure clause under RERA
· Extend the registration and completion date, suo motu, by six months for all registered projects expiring on or after March 25 without individual applications.
· Regulators may extend this for up to three months more, if needed
· Issue fresh ‘project registration certificates’ automatically with revised timelines.
· Extend timelines for various statuary compliances under RERA concurrently.
Jaxay Shah, chairman at developer lobby Credai-National, said the industry is hopeful that the finance minister will soon announce other necessary measures. These, according to Shah, include infusion of liquidity, de-cartelization of cement prices, restoration of supply chain to ease construction on the project sites and boost demand by increasing tax deduction limits for interest on home loans.
Neelesh Bora, Founder www.mypropertyboutique.com said: This move has been hailed by the real estate industry and it has come in at the right time. Though the industry still awaits the issues to be resolved with the help of the government which include restructuring of project loans, standard pricing policy on raw materials, reduction on home loan interest rates and measures to boost housing demand across the country.