Homebuyers body urges PM to restrict project extension to lockdown period

The Forum for People's Collective Efforts (FPCE), a pan-India homebuyers forum, has sought urgent intervention of Prime Minister Narendra Modi in directing the ministry of housing to restrict the extension of project completion by real estate developers for only the lockdown period.

In a letter to Prime Minister (DH has reviewed the letter), the FPCE said the force majeure clause should be applied only for the lockdown period when construction was not permitted and should not be extended further. Anything other than this, is patently illegal and should not be promoted by the very custodians of law, FPCE said.

The homebuyers body also requested the PM to direct the Ministry of Housing and Urban Affairs (MOHUA) to issue an advisory to the regulatory authorities to adhere to the requirements of Section 6 of RERA for any project extension in normal course. The authorities should also seek the consent of buyers prior to approving any extension, it said.

Last month, Finance Minister Nirmala Sitharaman, as part of the government's relief package to Covid-19 affected industries, had announced six months extension to all the RERA registered residential projects that were due for completion. Many housing projects are delayed due to lockdown for over the last two months.

“There is no provision in RERA Act, except considering extension under Section 6, as force majeure. Whereas the MOHUA has advised the state authorities to extend the projects and most of the authorities are issuing extension. States like Rajasthan has extended for 12 months, Maharashtra for 9 months, Karnataka, Madhya Pradesh for 6 months but not under Section 6... which is illegal,” said M S Shankar, General Secretary, FPCE in his letter to the prime minister.

He also urged the PM to direct the MOHUA to issue an advisory to the regulatory authorities to adhere to the requirements of Section 6 for any project extension in normal course, and also to seek the consent of buyers prior to approving any extension. During this extension, the EMIs should be payable by the builders.

He has also urged the Prime Minister to direct the builders, Suo-motu, pay the delay compensation as per the Section 18 as well. This will also act as deterrent for developers from seeking unnecessary extensions and delaying project completion, he stated.

MOHUA should also be directed to issue an advisory to all state governments and authorities under RERA, to ensure execution of orders/judgements issued by adjudicating officers, authorities, tribunal, as per the timeline mentioned in RERA.

FPCE has also sought a direction to MOHUA to ensure uniform enforcement of RERA across the country by undiluted RERA rules and regulations thereof and appointment of permanent authorities and tribunals also to advise the appropriate governments to amend suitably the inconsistencies of state acts pertaining to the real estate industry.