HP RERA Enforces Force Majeure Because of Coronavirus Outbreak
On the 8th of June 2020, after the coronavirus outbreak, Himachal Pradesh RERA enforces force majeure clause for a period of six months, keeping in mind the central government advisory.
Recently, the housing and urban affairs ministry has issued an advisory regarding the extension of registration of real estate projects and simultaneously extending timelines of all statutory compliances due to “force majeure” under the provisions of Real Estate Regulations and Development Act, 2016.
A spokesperson of Himachal Pradesh RERA said that Keeping in mind the central government advisories and implementing power vested under sections 37 and 34, a force majeure period of 6-months from 25th March to 24th September 2020, has been enforced.
The spokesperson also stated that for further extension after the preceding 6-months, for badly affected projects concerned, promoters will have to apply in the same manner with the provisions of sections 6 of the act.
He further added that state RERA may waive off the fee for such extension under rule 6 (2) of Himachal Pradesh Real Estate (Registration and Development) Rules 2017, if such extension is extending due to force majeure. The compliance deadline under section 11, which becomes due at any time during the force period, automatically extends to the period until the end of the subsequent period.
The period of force majeure shall be treated as a moratorium period for the purpose of computation of interest under sections 12, 18 19 (4), and 19 (7) of the Act.
On 13th May 2020, the Finance Minister Nirmala Sitharaman gave relief to real estate developers by extending the deadline for completion of projects by up to 6-months due to coronavirus outbreak in the country.
The relief will be extended to all the registered projects under the Real Estate (Regulation and Development) Act, RERA, expiring on or after March 25, the date from which national lockdown to control coronavirus came into effect.
Extension of Registration and Completion Date of Real Estate Projects under RERA
- Unfavorable impact due to coronavirus outbreak nationwide and projects hold the risk of defaulting on RERA timelines. Timelines need to be extended, the Ministry of Housing and Urban Affairs will advise States/UTs and their Regulatory Authorities to the following effect.
- Treat COVID-19 as an event of ‘Force Majeure ‘under RERA.
- Extend the registration and completion date on its own by 6-months for all registered projects expiring on or after March 25, 2020, without individual applications.
- Regulatory Authorities may extend this for another period of up to 3 months if needed.
- Issue fresh ‘Project Registration Certificates’ automatically with revised timelines.
- Extend timelines for various statuary compliances under RERA concurrently.
These measures will stress-free real estate developers and safeguard completion of projects on time so that homebuyers are able to get delivery of their booked homes with new timelines.
Himachal News Update
On 28th April 2020, Himachal Pradesh Chief Minister asked for the financial support for the unorganized and other workers. Himachal Pradesh CM requested Prime Minister Narendra Modi to make a special rule so that funds available with the Building and Other Workers Welfare Board can also be used for the welfare of them. Under the Building and Other Construction Workers Act of 1996, there is a provision to use this amount for the welfare of buildings and other workers.
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