NAREDCO requests UP-RERA to consider giving extension to real estate projects

The National Real Estate Development Council (NAREDCO) for Uttar Pradesh has written to the Real Estate Regulatory Authority (RERA) of the state asking for a six months automatic extension for compliance of various orders issued by the authority after construction activities at all real estate projects have come to a complete standstill with the escalation of second wave of Covid-19 cases.

According to data by the Ministry of Housing and Urban Affairs, 65,539 cases have been disposed of by the respective state RERA authorities as of 24 April 2021.

Out of this, nearly 40% cases (26,510 complaints) were resolved in Uttar Pradesh alone.

NAREDCO-UP has also requested state RERA a extension of similar time period for completion of various projects of developers registered with UP-RERA and submission of various returns and documents.

“This will give the developers a breathing space to re-organise the construction activities and find resources to comply with various orders of RERA,” said RK Arora, President, UP-NAREDCO.

NAREDCO, in its letter has said that persons in large numbers associated with construction activities, have become Covid-19 positive and many have even died.

“Some of the projects have been sealed by the District Administration prohibiting any kind of movement to and from these projects. The second wave of COVID-19 is considered to be a national natural calamity qualifying for force majeure for all purposes and relief measures are being taken by the government on a war footing basis,” the letter said.

The situation has brought the construction activities at all projects to a complete standstill as the weekend curfew/lockdown was clamped on from April 23.

“Since the COVID-19 cases are still rising rapidly and no indication of the situation improving visible, it is expected that the construction will suffer at least for the next six months. Even after that, it will take time to restore the material supply chain, re-engagement of manpower and machines,” the letter said.

The disruption of construction has led to a liquidity crisis amongst developers as the collections have been completely stopped and the banks and financial institutions are not releasing funds against flats under their home financing arrangement.