Housing Ministry asks RERAs to give 4-month extension to projects hit by West Asia conflict

The Union Housing and Urban Affairs Ministry on Friday issued an advisory asking all state Real Estate Regulatory Authorities (RERAs) to grant a four-month extension in the registration and completion timelines of eligible real estate projects affected by disruptions arising from the ongoing conflict in West Asia.

The ministry, in an advisory issued to all regulatory authorities, said the prevailing situation in West Asia has adversely affected global supply chains, resulting in a shortage of construction materials, thereby impacting the timely construction of the real estate projects.

It said the ministry had received several representations from stakeholders in the real estate sector seeking relief in view of the disruptions affecting timely completion of projects.

Referring to an Office Memorandum issued by the Department of Expenditure under the Ministry of Finance on April 29, the advisory noted that the ongoing West Asia situation has been treated as “war” for invocation of the Force Majeure clause.

Section 6 of the Real Estate (Regulation and Development) Act, 2016 provides for extension of registration of a real estate project on account of Force Majeure, which, inter alia, includes “war” affecting the regular development of a real estate project.

Further, under Section 7(3) of RERA, the Authority may, instead of revoking the registration, permit it to remain in force subject to such terms and conditions as it considers appropriate in the interest of the allottees, it said.

In view of the Force Majeure conditions arising from the conflict, the ministry has advised regulatory authorities to issue suitable orders extending the registration and corresponding completion timelines of registered real estate projects by four months.

The relief would apply to projects whose original, revised or already extended completion date falls on or after February 28, 2026.

In order to avoid the need for submission of separate applications for extension of registration of individual real estate projects and issuance of separate orders thereon, state RERAs may issue a common order or direction in this regard.

The National Real Estate Development Council (NAREDCO) welcomed the advisory about the extension of registration of real estate projects under the Force Majeure provisions of the Real Estate (Regulation and Development) Act, 2016.

The advisory comes in response to the impact of the ongoing situation in West Asia, which has disrupted global supply chains, led to shortages of construction materials and affected the timely execution of real estate projects, NAREDCO said in a statement.

Welcoming the advisory, Parveen Jain, President, NAREDCO, said, “NAREDCO sincerely welcomes the timely and pragmatic advisory issued by the Ministry of Housing and Urban Affairs.

“The ongoing geopolitical situation in West Asia has significantly impacted the availability and cost of construction materials, resulting in unavoidable delays in project execution. The Ministry’s recognition of these extraordinary circumstances under the Force Majeure provisions of RERA is a balanced and much-needed step for the real estate sector.”

He said that NAREDCO has requested all state RERAs to implement the ministry’s advisory in letter and spirit, adding that timely extension of project registration and completion timelines will provide much-needed relief to developers facing circumstances beyond their control due to the ongoing war-related disruptions.

“At the same time, it will protect the interests of homebuyers by enabling projects to be completed in an orderly manner, avoiding unnecessary litigation and ensuring greater certainty for all stakeholders,” Jain said.