Extension of registration of real estate projects due to ‘force majeure’ under the provisions of RERA Act 2016

Uttar Pradesh Real Estate Regulatory Authority (U.P. RERA) in its 35th Authority meeting deliberated on the extension of registration of real estate projects due to ‘force majeure’ under the provisions of Real Estate (Regulation and Development), Act 2016.  The meeting was chaired by the Authority Chairman Rajive Kumar and attended by all the members and senior officers of U.P. RERA.

After due deliberations, the Authority decided that all registered projects under the jurisdiction of U.P. RERA for which the completion date or revised completion date or extended completion date as per registration expires on or after 25th March 2020, the registration and completion date or revised completion date or extended completion date is automatically extended by six months due to outbreak of COVID-19 pandemic which is a calamity caused by nature and is adversely affecting regular development of real estate projects by invoking “force majeure” clause. This will also be applicable to such projects which have already availed one-year extension as provided in the RERA Act on or after 25th March 2020.

The Government of India had earlier issued an advisory through its Office Memorandum dated 13th May 2020 regarding extension of registrations of real estate projects due to ‘force majeure’ under the provisions of Real Estate (Regulation and Development), Act 2016 (RERA).

The Authority also decided that the time limit for various compliances including any of the previous Quarterly Progress Reports and/or Annual Audit Reports of projects under the Real Estate (Regulation and Development) Act, 2016, the U.P. Real Estate (Regulation and Development) Rules, 2016, or under U.P. Real Estate Regulatory Authority (General) Regulations, 2019 and the Orders of the Authority, which were due to be submitted by 31.03.2020, is hereby extended up to 30th  June,2020 without any payment of late fee.

Chairman U.P. RERA Rajive Kumar said, “The Authority has received representations from various organisations such as NAREDCO and CREDAI along with individual representations wherein they have explained in detail the issues being faced by the sector as a result of COVID-19 pandemic. Different promoters also raised their concerns in this regard in a meeting of promoters held by the Authority through video conferencing. Therefore, considering all the aspects, having a detailed deliberation in this regard and having in view the advisory issued by Government of India, the Authority using the powers conferred on it under section 37 of the Act, issued the directions regarding the extension of registration of real estate projects for six months”.

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Secretary U.P. RERA  Abrar Ahmed said, “The project will not require an extension if the CC/OC of the project has already been obtained. For the aforesaid extension, no fees will be charged from the promoters. The Authority will issue fresh ‘Project Registration Certificates’ with revised timeline in each such registered real estate project”.