It is not unknown that real estate has faced various challenges during the pandemic, most important being reverse migration of labourers to their native places and break in the supply chain of construction material.
Therefore, in another major move, on Friday, August 6, the Maharashtra Real Estate Regulatory Authority (MahaRERA) allowed a six-month relief to builders to deliver projects by accepting their demand for invoking the 'force majeure' clause because of the second wave.
In an official statement, the authorities mentioned that 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.
The automatic extension will not be available to projects that were to be completed before April 15, 2021. This order has been issued in order to aid government efforts in controlling the damage caused due to COVID-19 and ensure that completion of projects does not get adversely affected, the statement added.
The builders and real estate companies or property developers have welcomed and accepted the move by the government.
Commenting on the same, Anuj Puri, Chairman of ANAROCK Property Consultants said, “This extension, the second time as invoked under the force majeure clause, is justified as the situation demands it. The real estate construction industry is still heavily affected by the coronavirus pandemic. Developers have been able to keep on-site activities going to some extent with local labour, but the main workforce nevertheless comes from migrant labourers. Larger players have been able to provide additional facilities and retain a segment of their migrant workers, but smaller developers are still struggling and overall construction activity is far from optimal at any ongoing project. The restrictions imposed by the second wave are beyond the developer's ability to influence and the situation needed to be addressed by such a move.”
“Also, the supply chain of construction materials remains badly impacted. This, too, adds to extended construction and completion timelines,” he further stated.
"It is a move in the right direction and the real estate hopes for authorities other than MahaRERA to follow the same thought process and grant similar relief," developer Niranjan Hiranadani, national president of realty industry body Naredco was quoted by PTI.
A force majeure period of six months from April 15 to October 14 is being declared, the notification said.
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