On The Ground of Force Majeure, Builders Can’t Give Excuse To Delay Flats
Madhya Pradesh and Karnataka Real Estate Regulatory Authority said in MBTV live show that buyers are entitled to get compensation for the delay of real estate projects beyond the force majeure extension given by the central government.
Last month, to support real estate developers in the country, FM Nirmala Sitharaman announced that the deadline for completion of the projects will be extended by up to 6-months considering the coronavirus outbreak as an event of “force majeure” under the RERA Act 2016.
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. The extension was given to all registered projects expiring on or after March 25, 2020.
Keeping in mind the central government advisories to real estate regulators of all states and union territories states have implemented power provided for by law under sections 37 and 34, a force majeure period of 6-months from 25th March to 24th September 2020, has been enforced.
Madhya Pradesh RERA Chairman, Anthony De Sa while discussing the basic facts of the extension given by the central government “The COVID-19 situation is beyond everyone’s control. It has hit workforces, supply lines, manufacturing of raw materials, and everything else. Once a project is stalled, it takes some time for it to restart. That is why we have given a six-month extension to projects. Builders cannot use it as an excuse to delay further. All assurance and rights of buyers are protected and they are entitled to seek compensation on delay beyond the COVID-19 extension.”
Karnataka RERA Secretory, KS Latha Kumari also stated “We have also extended the project completion deadlines by six months but this move is to de-stress the real estate sector. The government wants to support the industry. By extending the RERA timeline, we are helping both consumers and developers. The overall growth of this sector depends on these two stakeholders, and we need to protect both.”
Consumers across the country are being convinced that this “Force Majeure” clause doesn’t impact their previous compensation claims and future delays of the project. At the same time, consumers will have to match the payment schedules if the developers start construction work and project move to certain levels of construction. And if they found default will be penalized in the same manner.
