On Friday, the Maharashtra Real Estate Regulatory Authority (MahaRERA) gave builders a six-month relaxation to complete projects. Authority has accepted the demand to apply the force majeure clause due to the second wave. This is the second time during the pandemic that the authorities have provided such assistance to developers in the state.
“All projects registered by MahaRERA for which a completion date, revised completion date or extended completion date expire April 15, 2021 or later. The validity period for such projects is extended by six months, authority said in a notification.
Further authority said it would issue revised project registration certificates and revised timelines for such projects as soon as possible. It also made it clear that the renewal will not apply to projects that were to be completed by April 15th.
The notification said that on April 13, the state government issued instructions to restrict the movement of people due to another wave of infection, adding that the wave was more deadly. The lockdowns halted the construction activities due to labor shortages and impact on the movement of building materials. A six-month period of “force majeure” has been announced from April 15 to October 14.
Other authorities should also follow same process
The order was issued to help the government control the damage caused by COVID-19. Also to ensure that the implementation of the project is not affected.
The conditions or time limits for the implementation of projects that expire at any time during the force majeure period will be automatically extended till the expiration date. However the rights of allottees will not get affected through the order. The notification said that an association of promoters had presented themselves before the authority for help in view of another disruption ravaging the industry.
Developer Niranjan Hiranadani, National president of realty industry body Naredco, said, “This is a step in the right direction and the sector hopes that other authorities besides MahaRERA will follow the same thought process and provide the same relief.”