Additional relief to builders on project completion against Rera Act: Homebuyers

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June 8, 2020 7:58 AM

The association urged Modi to direct MoHUA to modify its advisory on force majeure due to Covid-19 to be in line with Section 6 of Rera, and that to only for the actual period of lockdown when construction was not permitted.

The ministry is of the view that Covid-19 is caused by nature and is adversely affecting the regular development of real estate projects.

THE NATIONAL LOBBYING arm of homebuyers, Forum for People’s Collective Efforts (FPCE), has approached Prime MinisterNarendra Modi stating that the additional extensions sans penalties given to builders on completion dates of projects are against the Rera Act.

FPCE wrote a letter to the Prime Minister’s Office (PMO) on June 1 in which its general secretary, M S Shankar, said the ministry of housing and urban affairs (MoHUA) convened an emergency meeting of Central Advisory Council (CAC) on April 29 to provide  a blanket extension to all real estate projects across the country for 6/ 9 months, over
and above the 1 year already provided under Section 6 of Rera.“ FPCE had opposed the decision, as it is in violation of the act, and also followed it up with an email,” he added.CAC is constituted under the Real Estate(regulation and development) Act, 2016(Rera).

It is managed by MoHUA. Speaking to FE, FPCE president Abhay Upadhyay said, “The CPC before April 29 has met only once and that is on May 14, 2018. It has only met twice in the last three years that it was created. Our views were ignored.”

Upadhyay, who is also a member of CAC of Rera, said that officials should first ensure that Section6 of Rera Act is first exhausted and the ngo for additional extensions as builders, in any case, use the section for buying more time. MoHUA in a May 13 advisory to states said that regulatory authorities can extend the registration and completion date or revised completion date or extended completion date automatically by 6 months due to outbreak of Covid-19.

It also said that an additional extension of three months can be given by authorities at their own discretion. The ministry is of the view that Covid-19 is caused by nature and is adversely affecting the regular development of real estate projects by invoking force majeure clause. In the letter, Shankar said,“However, ignoring reviews, that the proposed extension is illegal andbeyondthepowersunderthelaw, and that the 1 year already provided under Section 6 should be exhausted first, MoHUA issued an advisory to all states to carry out this illegal blanket extension.”

The association urged Modi to direct MoHUA to modify its advisory on force majeure due to Covid-19 to be in line with Section 6 of Rera, and that to only for the actual period of lockdown when construction was not permitted. FPCE also requested the PM to direct MoHUA to hold regular CAC meetings to address the issues faced by all stakeholders and not only to convene emergency meetings for builders’interests.FPCE is a not for- profit company formed by core committee members of Fight For Reraunder Section 8 of Companies Act, to work towards protection of citizen’s right.

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