Status as on- 27/04/2020
INTRODUCTION
The COVID-19 situation resulted in nation-wide lockdown. Thus, all activities are paused in the Real Estate Sector, including the development and construction of projects and ultimately impacting the development and functioning of the real estate sector.
The developers and builders are facing different challenges. Therefore, to minimize the damage of COVID-19 and to ensure that real estate does not get adversely affected, the RERA authorities have been taking preventative measures across the nation.
Relief to Gujarat RERA Registered Projects
Gujarat RERA real estate projects registered with it and currently, almost 5000 projects are in the development stage. The COVID-19 lockdown has halted the progress of all these projects. Therefore, in order to prevent any panic among the stakeholders of the real estate sector and ensure its longevity, the Gujarat Real Estate Regulatory has taken the following steps:
- Firstly, by invoking its power under Rule 7(1) “where extension of registration is due to force majeure the Authority may at its discretion waive the fee for such extension granted to any real estate project”. The authority has granted one-time extensions to all registered real estate projects.
- Secondly, it has waived the fee for an extension application- “For all the Gujarat RERA registered projects having their project End Date on or between 1st April 2020 and 31st March 2021, the Promoters are allowed to apply for a one-time extension of their project End Date. The Application Fee for this Registration Extension applied as a result of delay due to COVID Lockdown is waived.”
- Thirdly the authority declared that promoters who want to revise the development plans may opt for De-registration of Portion of their Inventory from the registered project through alteration application and authority will waive the fee for those applications.
Thus, authority allowed for the application of a one-time extension in the project completion date. However, only those registered projects which have completion dates on and between April 1, 2020, and March 31, 2021, will be allowed to take the benefit.
CONCLUSION
Likewise, other states, Gujarat RERA declared several measures and to support the Real Estate Sector in the State. By granting above mentioned relaxations, the authority has extended benefit to more than 80% of the ongoing projects across the state which are likely to be completed in the next four years.
Disclaimer- The above article is based on the interpretation of related judicial pronouncement and related laws. The readers are expected to take expert opinion before relying on this article. For more information and clarification, please connect to us at support@centrik.in
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