Real Estate Stakeholders To Receive Advisory From Central Government

The central ministry for housing and urban affairs said that the impact of the lockdown on the real estate sector will be treated as an event of ‘Force Majeure’ under the provisions of the Real Estate (Regulation and Development) Act, 2016 (RERA). The government will soon issue an advisory to states about the special measures that need to be taken to save the interest of homebuyers, real estate industry stakeholders.

The decisions were taken at the Central Advisory Council meeting under RERA which was chaired by minister of state for housing and urban affairs, Hardeep Singh Puri on Wednesday. The meeting saw different stakeholders of the real estate sector including state secretaries, RERA Chairpersons, representatives of home buyers, real estate associations and other stakeholders at a meeting of Central Advisory Council of RERA.

“Participants raised several concerns facing the sector in the light of COVID-19 pandemic. I assured them that govt is taking various proactive steps to revive economic activities. We shall consider their demand for invoking ‘force majeure’ clause under RERA & will soon announce measures to save the interest of home buyers & protect the sector from adverse impact,” Puri said on Twitter after the meeting.

There has been a strict lockdown imposed across the country to tackle the spread of covid-19 since 25 March. Even as construction has been allowed in some parts in the second phase of the lockdown, such activities have been impacted due to reverse migration of labour at large scale and disruption of supply chain of various construction materials.

The meeting also saw a demand for providing special relief for the real estate sector so that the sector is able to cope up with adverse impact of the current crisis.

Durga Shanker Mishra, secretary for housing and urban affairs said the step special relief will be in interest of homebuyers & real estate industry so that projects can be completed & homes get delivered.

“There have been demands for relief so that real estate projects can cope with adverse impact of current crisis. It was unanimously recommended to invoke force majeure clause to give suo moto relief to registered projects due to be completed on or after 25 March, 2020,” Mishra said.

(Source: Livemint)