Force Majeure relief: NCR realty sector welcomes Centre's 4-month RERA extension

An advisory issued by the Ministry of Housing and Urban Affairs on July 31, granting real estate developers a four-month extension on project completion timelines under the Force Majeure provisions of RERA, has been welcomed by the industry as timely relief for a sector navigating global supply chain disruptions.

The order, signed by Under Secretary (Housing) Sanjay Kumar, invokes Section 6 of the Real Estate (Regulation and Development) Act, 2016, which allows an extension of project registration on the grounds of Force Majeure. It notes that the ongoing West Asia conflict was classified as “war” for this purpose under an office memorandum issued by the Department of Expenditure on April 29. Accordingly, State RERA authorities have been advised to grant a four-month extension to the registration and completion timelines of projects whose completion date, revised completion date, or extended completion date falls on or after February 28. To avoid developers having to apply on a project-by-project basis, the Ministry has also recommended that states issue a single common order covering all eligible projects.

Shekhar Patel, president, CREDAI, called the advisory “a positive step taken in line with the sector’s ask,” pointing to strained material and labour supply chains. He also welcomed the common-order approach for ensuring uniform implementation across states. Parveen Jain, president, NAREDCO, termed it “a balanced and much-needed step” and urged states to implement it “in letter and spirit” to avoid unnecessary litigation.

Sudeep Bhatt, director (Strategy), Whiteland, said recognising war under the Force Majeure framework brought “much-needed regulatory clarity” while safeguarding homebuyers’ interests. Pradeep Aggarwal, founder and chairman, Signature Global, called it “remarkable foresight” that would allow developers to absorb shortages without compromising quality.

Sidharth Pansari, managing director, Primarc Projects, said the extension offered “much-needed breathing space.” Shrivallabh Goyal, CEO, Reliance MET City, called it “a structured framework” for delays beyond developers’ control. Vivek Singhal said it reinforced “confidence across the sector by providing a uniform framework for addressing exceptional circumstances.”

Rajjath Goel, managing director, MRG Group, said it would help developers manage logistics and execution “without affecting the construction process.” Anil Godara, founder and managing director, J Estates, said the flexibility mattered most for the senior living segment, where timely delivery is critical. Sam Chopra, president and country head, eXp Realty India, called it “a pragmatic step” that would strengthen stakeholder confidence.

Chanderjeet Pathak, chairman, Divyansh Group, said the sector’s fundamentals remained strong, with transparent communication being key to sustaining buyer confidence. Sushil Mohta, president, CREDAI West Bengal, flagged additional state-specific delays arising from election-related processes and construction bans imposed for safety audits, expressing hope that the state authority would factor these in separately.

The relief carries particular significance for Gurugram, which accounts for one of the highest volumes of ongoing construction activity in the NCR and saw sites repeatedly idled through the past winter under GRAP curbs. Industry executives said the extension gives developers room to absorb both sets of disruptions without breaching registered project deadlines.

Developers now await the swift, coordinated notification of the common order by state RERA authorities.