Real estate alert! 12-month extension to complete projects - NAREDCO urges UP RERA
Citing issues due to COVID-19 outbreak, realtors' body NAREDCO has urged the Uttar Pradesh Real Estate Regulatory Authority (RERA) to grant a 12-month extension for completing construction projects in the state
Citing issues due to COVID-19 outbreak, realtors' body NAREDCO has urged the Uttar Pradesh Real Estate Regulatory Authority (RERA) to grant a 12-month extension for completing construction projects in the state These are the projects that were to be completed during this year but have got hit due to disruption in supply chain of material, migrant worker exodus, among others since the outbreak of COVID-19 in March, UP NAREDCO office-bearers said.
"The decision could affect around one lakh housing units in NCR region of Uttar Pradesh and around 3 to 4 lakh across the state," UP NAREDCO chairman R K Arora said. The state unit of the National Real Estate Development Council (NAREDCO), an autonomous self-regulatory body under the aegis of the Union Urban Affairs Ministry, wrote to UP RERA Secretary Abrar Ahmed on Monday.
"It was expected that the pandemic would not last long and the set back in the real estate might be for a temporary phase. However, as of today, there is no sign of the pandemic being ended as the number of positive cases is increasing day by day," Arora stated in the letter.
"All the above setbacks have pushed back construction in real estate projects by about 18 months It is therefore very clear that the 'force majeure' situation is continuing for some more time for which further time extension to project completion dates need to be allowed by UP RERA," it stated, urging a time extension of 12 months. "Further, there was unexpected exodus of migrant labourers in large numbers from real estate projects to their native states. Also the supply chain of materials and equipment from different parts of the country, has been badly impacted due to lockdown restrictions," the letter stated.
However, the UP RERA said it would follow legal procedures to reach a decision on the matter. "There is no provision in the law to allow extension on such grounds. The RERA works according to the law," the UP RERA Secretary said.
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