In a major relief for the real estate developers, the Union Ministry for Housing and Urban Affairs will issue advisory to states and union territories to declare the Covid-19 situation as a 'force majeure' under the Real Estate (Regulation and Development) Act.
Addressing the media here on Wednesday, Finance Minister Nirmala Sitharaman said that the Ministry for Housing and Urban Affairs would issue advisory to the states and union territories to the effect in a bid to provide relief to developers.
With the move, the government has allowed suo-moto extension of the registration and completion date by six months for all registered project expiring on or after March 25, 2020 without individual applications.
She said that regulatory authorities may extend this for another period of upto three months, if needed.
Further, the fresh project registration certificates will be issued automatically with revised timelines. The Centre has also directed the extension of timelines for various statutory compliances under RERA concurrently.
As per the government, these measures will de-stress real estate developers and ensure completion of projects so that home buyers are able to get delivery of their booked houses with new timelines.
The announcement is part of the Rs 20 lakh crore economic package announced by Prime Minister Narendra Modi on Tuesday evening.
( With inputs from IANS )