NEW DELHI: All state Real Estate Regulatory Authorities (RERAs) have been asked to grant a four-month extension in the registration and completion timelines of eligible real estate projects affected by disruptions arising from the ongoing conflict in West Asia.
In an advisory issued by the Ministry of Housing and Urban Affairs on Friday to all regulatory authorities, it was stated that the prevailing situation in West Asia had adversely affected global supply chains, resulting in a shortage of construction materials, thereby impacting the timely construction of the real estate projects.
Referring to an Office Memorandum issued by the Department of Expenditure under the Ministry of Finance on April 29, the advisory also noted that the ongoing West Asia situation has been treated as “war” for the invocation of the force majeure clause.
Section 6 of the Real Estate (Regulation and Development) Act, 2016, provides for the extension of registration of a real estate project on account of force majeure, which, inter alia, includes “war” affecting the regular development of a real estate project.
Further, under Section 7(3) of RERA, the Authority may, instead of revoking the registration, permit it to remain in force subject to such terms and conditions as it considers appropriate in the interest of the allottees, the Advisory read.
In view of the force majeure conditions, the ministry has advised regulatory authorities to issue suitable orders extending the registration and corresponding completion timelines of registered real estate projects by four months. The relief would apply to projects whose original, revised or already extended completion date falls on or after February 28, 2026.
Welcoming the development, Parveen Jain, president, The National Real Estate Development Council (NAREDCO), said, “The ministry’s recognition of these extraordinary circumstances under the Force Majeure provisions of RERA is a balanced and much-needed step for the real estate sector.”
Extension clause
Section 6 of the Real Estate (Regulation and Development) Act, 2016, provides for the extension of registration of a real estate project on account of force majeure, which, inter alia, includes “war” affecting the development of a project.