MahaRERA Extends Project Completion Deadline By Three Months

Real Estate Projects in Maharashtra Gets Three Months Extension

In a major relief for developers, the Maharashtra Real Estate Regulatory Authority (MahaRERA) on April 2, 2020, extended the completion deadline for all registered housing projects where completion date, revised completion date, or extended completion date expires on or after 15th March 2020 by three months.

Besides, the authority also extended the validity period of all statutory compliances in accordance with the Real Estate (Regulation and Development) Act, 2016, and the rules and regulations which were due in March, April, and May are till June 2020.

The construction work in MahaRERA registered projects has been severely affected and supply chains for getting construction materials has been disrupted due to nation-wide 21-day lockdown. At the same time, migrant workers may also have migrated back to their home towns.

Due to these circumstances, the housing projects across Maharashtra will take some time to restart work. The state, as well as the central government, has taken several steps to control the damage caused by COVID-19 pandemic and ensure that completion of MahaRERA register housing projects does not get adversely affected. As a result, it has been decided by the MahaRERA to issue this order.

With this, the real estate developers will get a 3-months extension to complete their projects.

This move comes just after the Reserve Bank of India (RBI) recently allowed banks to provide a 3-month moratorium on fixed-term loans and EMI payments.

Builders Welcome MahaRERA Move

Several developers across the state welcomed the relief from the authority saying that the lockdown brought all work to a halt, hence an extended deadline for real estate projects across Maharashtra will definitely be the need of the hour.

Welcoming the MahaRERA’s decision, Nahar Group’s Vice Chairperson, Manju Yagnik said that this extension of the deadline for projects in Maharashtra is in sync with RBI’s announcement of allowing a 3-month moratorium for payment of home loan EMIs and other working capital loans are a welcome move.

“We welcome this move in the wake of supply chain disruption, migration of workers, and other related issues, as it will take some time for the real estate industry to be on track. A much-appreciated step when the country is under total lock-down to counter the impact of pandemic COVID-19 leading to construction work coming at grinding halt,” she said.

Ashok Mohanani, Chairman EKTA World said that at a time when there is “mental, social and economic crisis globally, this move brings relief”.

He wrote that the lockdown brought all work to a halt, therefore, a deadline extension for under-construction projects was surely the need of the hour.

President of the National Real Estate Development Council (NAREDCO) Niranjan Hiranandani described the decision as a “proactive” step by Maharashtra RERA.

“Even after the lockdown is lifted, it is anyone’s guess how long it will take for things to return to normalcy,” Hiranandani said.

MahaRERA Announcement On Deadline Extension

In April 2020, the Maharashtra Real Estate Regulatory Authority (MahaRERA) announced a 3-month extension on project completion deadlines to support the state’s developers who are badly hit by the slowdown.

MahaRERA in its 2nd announcement in May 2020 extended the validity of registered projects by 3-months, in case the completion date, the revised completion date, or the extended completion date expires on or after March 15, 2020.

The authority was also extended all statutory compliances till June 20 that were due in March, April, and May.

On 8th May 2020, in a major relief to the developer community, the central government directed real estate authorities to extend the project completion deadlines automatically by 9-months due to coronavirus outbreak in the country. After the central government’s announcement, the Maharashtra government has extended due dates of all building approvals by 9-months.

With the new announcement, all permissions are further extended by another 6-months.

On May 13, 2020, Finance Minister Nirmala Sitharaman made it compulsory for the developers to mention the ‘force majeure’ clause, as a legal justification for delays in project deliveries. Accordingly, the state government directed state real estate regulatory authorities to consider the entire duration of the Coronavirus pandemic in the country as a force majeure, as far as real estate projects are concerned.