Covid-19 Second Wave: Developers’ bodies seek deadline extensions for RERA-registered projects.

Builders have also requested that the housing minister send a directive to all states extending the validity of all current permits.

Covid-19 Second Wave: Developers’ demand extension timelines projects registered under RERA

To deal with the effects of the second wave of COVID-19, real estate developers have called for more time to complete projects, claiming that the situation could take six to nine months to return to normalcy, and have asked the housing ministry to send a guideline to all states extending the validity of all current permissions.

Credai National said in a letter to the Ministry of Housing and Urban Affairs that there could be a gap in the overall lifecycle of construction projects due to labor shortages, disruptions in the supply chain of raw materials, and other unpredictable factors.


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According to the letter, even after the lockdown is lifted, mobilizing labor and supplies would take months. Though states have removed building work from the lockdown, labor is returning to their villages due to an outbreak of infections in major cities.

The first wave has had a cascading impact, as the already broken supply chain has just begun to stabilize, and now that states have implemented new lockdowns and curfews, the supply chain will continue to be affected, according to the builders’ letter.

Both considerations would have a significant effect on project schedules, resulting in delays in under-construction assets and RERA breaches. Rapid vaccination, resulting in a reduction in diseases and deaths, will regain labor morale, and only then will labor return to the sites. According to the builders’ body, the condition will take 6-9 months to return to normalcy based on the first wave’s experience.

It requested that the ministry issued a “directive to all states to extend the validity of all current permits, licenses, and no-objection certificates, including those granted by RERA to real estate projects for a period of nine months.”

The National Real Estate Development Council (Naredco) has also requested an increase of project implementation deadlines in its letter to the ministry.

“In light of the industry’s difficulties, we respectfully request that you send an advisory to State Governments and their RERA Authorities to further extend the completion date for all real estate projects registered under RERA for a duration of 6 months, with a provision for further extension,” Naredco said in a letter to the ministry.

“We also recommend that you release an advisory for ‘suo moto’ extensions of the deadlines of various time-bound permits, such as No Objection Certificates (NoCs), approvals relevant to real estate building projects, and so on,” it said.

In May of this year, the Centre released an advisory requesting that real estate authorities in states and union territories postpone the deadline for project implementation by at least six months due to the coronavirus epidemic.

The outbreak of COVID-19, a coronavirus-caused respiratory disease, will be viewed as an “act of God” and a “force majeure” case under the Real Estate Regulatory Authority (RERA) Act, according to a housing and urban affairs ministry advisory released on May 13.



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