Covid 19 Creates Opportunities for Developers in Relation to RERA

Kishan Thakkar K

Everyone has a dream of owning a home. Home is one of the necessities of humans. Everyone returns to the home as the day ends, there is one Gujarati quote for that: ‘Dhartino Chhedo Ghar’. 

For the past few decades, buyers have been facing problems from buying properties, along with the lack of clarity in the procedure. To address this, the Parliament passed the Real Estate Regulation and Development Act in 2016 to solve the issues faced by the buyers.

This act tried to safeguard home-buyers and also boost real estate investment. Under this act, the builders must enlist their land venture. 

The covid-19 pandemic and back-to-back lockdown severely impacted the housing market across India. The cities observed a significant dip in the residential market, which tumbled the housing sales by 10-20 percent.

What is RERA?

The main objective of RERA is to create a trustworthy environment for home buyers and also investors. The main vision of the RERA is to make the real estate sector secure through effective and fair regulation for both consumers and developers.

Is the Covid-19 Pandemic a Force Majeure Event Under RERA?

The explanation provided to the Section 6 of the Act states that the expression “Force Majeure” shall mean a case of war, flood, drought, fire, cyclone, earthquake, or any calamity caused by nature affecting the regular development of the real estate project.

Certain states have taken seriousness of the fact that the lockdown has affected the construction work in real estate projects and have made certain allowances.

The outbreak of COVID-19, the respiratory illness caused by the coronavirus, be treated as an “Act of God” and a “force majeure” event under the Real Estate Regulatory Authority (RERA) Act, Ministry of Housing and Urban Affairs had said in the advisory issued on May 13.

As one of the major reliefs to the real estate sector, the Finance Minister recently announced Covid-19 to consider as a ‘Force Majeure’ event & extension the timeline by a period of six months.

Force Majeure, A friend of yours,

Kindly visit the blog written by Marshall Hargrave on Force Majeure, by clicking here, Force Majeure.

Developer Demanding Extensions for Project 

Developers have demanded more time to complete the projects for completion of projects, due to shortage of labor, disruption in the supply chain of raw materials, and other factors.

The factor directly has affected on project timeline and delays in under-construction properties and will come under the ambit of RERA violations.

Analyzing the Effect of Extension on Developers

Covid-19 and the lockdown have adversely affected the real estate sectors. The announcement followed by the RERA advisory will prove to be a great sigh of relief to the developers.

No one can register a case against developers for an extended period, nor will anyone can be accountable to pay any penalty.

The developers need to keep in mind, the certain points with regard to the advisory,

  • The developers are not required to make an application for claiming the extension, the extension is available by default.
  • The regulatory body of the state will issue a fresh certificate with a revised timeline for applicable projects. 
  • If the developers want a further extension, they will have to apply for the same under section 6 of the Act.

On a Final Note

Investment in properties in this uncertain situation is a risky thing. However, the government initiatives like RERA have brought up strategies so that you don’t have to face any problems. If you have any confusion regarding RERA and policies related to it, drop us a mail at

Staying informed and discussing with experienced & experts while making a decision is an ideal way of making a great deal. All you have to do is contact Roodland, which provides the best real estate services. For any queries and suggestions, contact us and discuss all of your options with us!

Consider sharing with your friends, family, and relatives, if you have found it useful.


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