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RERA – Centre Allows Four-Month Relief for Eligible Housing Projects Amid West Asia Disruptions

RERA – The Central Government has directed all State Real Estate Regulatory Authorities (RERAs) to provide a four-month extension to the registration and completion deadlines of eligible real estate projects affected by disruptions linked to the ongoing conflict in West Asia.

Rera housing projects four month extension relief

The Ministry of Housing and Urban Affairs issued an advisory to all State RERAs, stating that the continuing geopolitical tensions in West Asia have disrupted global supply chains, creating shortages of key construction materials. According to the ministry, these challenges have slowed construction activities and made it difficult for several developers to complete projects within the originally approved timelines.

Ministry Invokes Force Majeure Provisions

The advisory referred to an Office Memorandum issued by the Department of Expenditure under the Ministry of Finance on April 29, which classified the ongoing situation in West Asia as a “war” for the purpose of invoking the force majeure clause. This recognition enables authorities to consider exceptional relief measures for projects that have faced delays due to circumstances beyond the control of developers.

The ministry said the decision has been taken in line with the legal framework provided under the Real Estate (Regulation and Development) Act, 2016, ensuring that the extension process remains consistent with existing provisions of the law.

Legal Basis Under the RERA Act

Section 6 of the Real Estate (Regulation and Development) Act, 2016, allows the registration of a real estate project to be extended in cases of force majeure. The law specifically includes situations such as war and other extraordinary events that directly affect the normal progress of construction and project development.

The advisory also highlighted Section 7(3) of the Act, under which a Real Estate Regulatory Authority has the discretion to allow a project’s registration to continue instead of cancelling it. Such permission can be granted on conditions considered appropriate by the authority while safeguarding the interests of homebuyers and other stakeholders.

Projects Eligible for the Extension

Based on the force majeure conditions, the Ministry has advised all State RERAs to issue suitable orders extending both the project registration period and the corresponding completion deadline by four months.

The benefit will be available to registered real estate projects whose original completion date, revised completion schedule, or any previously extended deadline falls on or after February 28, 2026. The move is expected to provide temporary relief to developers facing unavoidable delays caused by international supply chain disruptions.

Industry Welcomes the Decision

The announcement has received a positive response from the real estate industry. Parveen Jain, President of the National Real Estate Development Council (NAREDCO), described the ministry’s decision as a timely and balanced measure.

According to Jain, recognising the current geopolitical situation under the force majeure provisions of RERA offers practical support to the sector while maintaining the regulatory framework. He said the decision acknowledges the exceptional circumstances affecting construction activity and provides developers with additional time to complete projects without compromising compliance requirements.

Relief Aimed at Maintaining Project Stability

The latest advisory is intended to help ensure that construction projects impacted by global supply shortages receive temporary regulatory relief rather than facing avoidable penalties. By extending project timelines under the provisions of the RERA Act, the government aims to reduce pressure on developers while also protecting the interests of homebuyers through an established legal process.

The measure reflects the government’s approach of addressing external disruptions through existing statutory provisions instead of introducing separate emergency regulations, allowing ongoing housing projects affected by the West Asia conflict to continue with greater certainty.

 

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