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The Ministry of Housing and Urban Affairs- MOH&UA- has requested the government to extend the timelines under the RERA (Real Estate (Regulation and Development) Act, 2016. It has asked to develop the timelines to invoke the Force Majeure under the Act; to complete the Real Estate Projects which have got locked and delayed in these COVID-19 times, and various statutory compliances, under the provisions of RERA.
The request was added to the government to make changes in the ongoing RERA, due to the reverse movement of the laborers from cities to villages, in the coming of this Pandemic-Covid-19.
It is the Central Advisory Council, where all the stakeholders from the different areas such as representatives of home buyers, developers, real estate, agents, financial institutions, regulatory authorities, and state governments. It is a body that regulates and issues the guidelines on the real estate projects which have been registered under the RERA.
Every promoter of the real estate project has to take the certificate of registration from the RERA- Regulatory Authorities, of the requisite states and Union Territories, before advertising, marketing, booking, selling, or offering for sale, or inviting persons to purchase the plot. Apartment or building etc.
Non- completion of the projects within the stipulated period may attract penalties which may be extended up to- 5 % of the estimated cost of the project. If the promoter fails to submit the project on time or fails to give the possession time, as settled in the agreement, the allottee is entitled to the payment of interest as may be set out in the agreement to sell until the handling of the possession.
Read our article:RERA Registration for Real Estate Agent
It can be concluded that RERA has and its extension of time limit over the registered projects of real-estate, was essential to avoid the hefty penalties which could be attracted due to the provisions of the Act. The sentences were drawn on the builders of real estate projects due to non-completion of the projects. The step called off the penalties, as the situation was not in the hands of builders.
After including the Pandemic of Covid-19 in the definition of the Force Majeure, has saved the penalties and list of defaulters according to the RERA Act.
The government also clarified that it will suspend the new initiation of insolvency applications, for a year considering the current COVID-19 Pandemic. The recourse to the homebuyers under the Insolvency and Bankruptcy Code shall not be applicable over them, in this situation for a year. These developments brought by the government have been in favor of the home developers, and no mercy was spared to the Homebuyers in the IBC for the insolvency application.
Read our article:RERA Registration Fees Structure
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