Lockdown forces K-RERA to extend completion date of real estate projects

Adjourns all cases listed for hearing up to April 14

The real estate sector has not escaped the cascading effects of the COVID-19 pandemic, the effects of which are being felt not just in India, but across the world. In the wake of the 21-day lockdown, the Karnataka Real Estate Regulatory Authority (K-RERA) has extended the completion deadline of registered projects that expired on or after March 15, 2020.

In a circular issued on April 4, K-RERA stated that the period of validity for registration of such projects will be extended by three months. The regulatory authority will issue project registration certificates with revised timelines.

The Authority acknowledged the impact of the lockdown noting that the progress of real estate projects registered with K-RERA has been severely hit. Some of the reasons for the delay include disruption of supply chains for obtaining construction materials and migration of the labour force to their native towns. “Under these circumstances, real estate projects across Karnataka will take some time to restart their work,” said K-RERA in the circular.

The Authority has also taken a decision to extend the date of statutory compliance in accordance with the Real Estate (Regulation and Development) Act, 2016, which is due in March, April and May. This has been extended till June 30, 2020.

In another decision, all the complaint cases listed for hearing up to April 14 before the K-RERA and adjudicating officer have been adjourned. The next date of hearing of each case will be posted on the website of the authority. This decision has been taken to avoid gathering of lawyers, litigants and visitors. However, exemption has been given to hearing of urgent cases.

The Confederation of Real Estate Developers Association of India (CREDAI) has welcomed the deadline extension. In a press release, president of CREDAI – Bengaluru Kishore Jain said, “With the slowdown, expected recession, developers were worried about complying with regulations set by RERA.”

CREDAI also pointed out that developers may need a further extension as labourers may not return immediately after the lockdown.

Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Jul 15, 2020 5:13:36 PM |

Next Story