Coronavirus lockdown | Ministry to advise real estate regulators to extend project completion deadlines

[ad_1]

The Union Housing and Urban Affairs Ministry will advise States and Union Territories and their regulatory authorities to extend the registration and completion date of real estate projects by six months as part of economic relief measures announced by Finance Minister Nirmala Sitharaman on Wednesday.

Full coverage on coronavirus

Referring to the announcement, Housing and Urban Affairs Minister Hardeep Singh Puri said in a tweet: “Relief measures announced by @FinMinIndia for India’s real estate sector will benefit home buyers, builders & other stakeholders who have been demanding these initiatives to counter the adverse effect of the pandemic crisis on construction activities in our urban areas. (sic).”

Natural calamity

In another tweet, he said the six-month extension and treatment of the COVID-19 pandemic as an event of force majeure, like a natural calamity, under the Real Estate (Regulation and Development) Act would “de-stress the sector and ensure completion of projects so that homebuyers are able to get delivery of their booked houses with new time lines.”

The States’ Real Estate Regulatory Authorities would give a six-month extension to registered projects expiring on or after March 25. If required, a further extension of three months could be given.

e-Book on COVID-19 | State-wise tracker for coronavirus cases, deaths and testing rates

In a statement, the MoHUA said: “Due to situation created by the COVID-19 pandemic, nation-wide lockdown was announced with effect from March 25, 2020. As a result, the construction work of ongoing real estate projects was halted leading to reverse migration of labourers to their native places. Further, there was large scale disruption in the supply chain of construction materials which adversely impacted the construction activities across the country.”

The Ministry noted that pre-monsoon construction could be started, leading to further delay in the construction cycle.

Coronavirus, May 13 updates | State Helpline numbers for COVID-19

“It is clear that in such circumstances, work on the real estate projects will take quite some time to restart in full gear. In the absence of urgent remedial regulatory measures under the Real Estate (Regulation and Development) Act, 2016, there is also a possibility of many real estate projects getting stalled leading to litigation etc.”

You have reached your limit for free articles this month.

Subscription Benefits Include

Today’s Paper

Find mobile-friendly version of articles from the day’s newspaper in one easy-to-read list.

Unlimited Access

Enjoy reading as many articles as you wish without any limitations.

Personalised recommendations

A select list of articles that match your interests and tastes.

Faster pages

Move smoothly between articles as our pages load instantly.

Dashboard

A one-stop-shop for seeing the latest updates, and managing your preferences.

Briefing

We brief you on the latest and most important developments, three times a day.

Not convinced? Know why you should pay for news.

*Our Digital Subscription plans do not currently include the e-paper ,crossword, iPhone, iPad mobile applications and print. Our plans enhance your reading experience.

[ad_2]

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *