On Friday, the Maharashtra Real Estate Regulatory Authority (MahaRERA) provided real estate developers with a six-month extension for project completion deadlines. MahaRERA accepted considering the force majeure clause, because of the impact of the second wave of the COVID-19 pandemic. This marks the second instance during the pandemic where authorities have extended such relief to developers operating within the state.
According to an official notification, "All projects registered with MahaRERA, for which the original, revised, or extended completion date falls on or after April 15, 2021, will receive a six-month extension." The authority has stated that it will issue revised project registration certificates. Furthermore, amended timelines for these projects will be shared as soon as possible. Also, This makes it clear that those projects initially slated for completion before April 15 do not qualify for the extension.
The notification specifies that the state government issued directives on April 13, which imposed restrictions on movement aimed at curbing the spread of the latest wave of infections, which was described as particularly deadly. The resulting lockdowns caused disruptions in construction operations due to both shortages of labor and impediments to the transport of necessary construction materials. A six-month period of force majeure has been instated, lasting from April 15 to October 14.
Other Authorities Should Adopt A Similar Approach
The order aims to mitigate the adverse effects of COVID-19 and ensure that project implementation remains on track. Likewise, project timelines expiring during the force majeure period will be automatically extended until the conclusion of this period. Allottee rights, however, remain unaffected by this order. The notification also states that an association of promoters had previously appealed to the authority for assistance in overcoming the latest disruptions impacting the real estate sector.
Niranjan Hiranandani, who serves as the National president of the real estate industry body NAREDCO, stated, "This measure represents a step in the right direction, and we trust that other authorities, in addition to MahaRERA, will embrace a similar approach and offer comparable relief."
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