Projects completion extension to protect the interests of developers and home buyers

The 6-month extension granted for completion of projects by FM , will help destress both developers and home buyers.

In the wake of Corona crisis, the Finance Ministry has invoked force measure. It has extended by six months the registration and completion date of all RERA registered real estate projects.This is applicable to all projects expiring on or after March 25 2020. This will provide a breather to about 40000 housing projects across India which are under construction.In addition to 6-month extension applicable to all RERA authorities, individual Authorities can provide another 3-month extension. What more, along with projects,extension has been provided to various statutory compliances under RERA.

Says Pradeep Aggarwal, Founder Chairman Signature Global, Chairman, National Council on Real Estate, Housing and Urban Development, ASSOCHAM, ” This regulatory provision will provide relief to both developers & home buyers. However, projects timeline extension is not sufficient. As developers face capital crunch to complete their projects, they need liquidity infusion. Despite repo & reverse repo rate reductions by RBI, there is limited lending by banks to NBFCs/HFCs. Several lakh crores of funds are parked by banks with RBI under reverse repo. These should be freed to extend lending support to real estate sector. Also, the FM should come up with credit guarantee scheme for real estate.

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