Force majeure provision invoked on account of COVID-19
In view of the second wave of COVID-19, the Maharashtra Real Estate Regulatory Authority (MahaRERA) on Friday invoked the force majeure provision to give a six-month extension for real estate projects whose completion date, revised completion date or extended completion date expired on or after April 15, 2021.
“For all MahaRERA registered projects where completion date, revised completion date or extended completion date expires on or after April 15, 2021, the period of validity for registration of such projects shall be extended by six months. MahaRERA shall accordingly issue project registration certificates, with revised timelines for such projects, at the earliest. The above automatic extension shall not apply to projects that were to be completed before April 15,” said the order.
The order said the devastating second wave and consequent lockdowns disrupted supply chains for obtaining construction material, led to migration of workforce and caused slowdown in construction work.
“It is a welcome move that will give major relief to all developers who are reeling under the pressure of meeting the RERA guidelines amid the second wave of COVID-19,” said Ashok Mohanani, president, NAREDCO.
Pritam Chivukula, honorary secretary, CREDAI MCHI, said construction activity was adversely affected due to lockdowns. “The six-month extension by Maha RERA will surely provide much-needed relief to the ailing real estate sector,” Mr. Chivukula said.
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