States extend real estate projects completion period
The lockdown has affected all under-construction projects
The state governments in Gujarat, Uttar Pradesh and Karnataka have provided relief to real estate developers to help them mitigate the impact of the current lockdown.
The state regulators have allowed realtors to apply for a one-time extension in the project completion deadline (end date). The extension will be provided to all registered projects having their project end date on and between April 1, 2020 and March 31, 2021.
The Real Estate Regulatory Authority-Karnataka (Rera-K) has given a three month extension for projects that were to be completed by March 15 but have been held up due to the lockdown. In this connection, builders had met with RERA officials requesting an extension of the deadline as the construction industry has come to a grinding halt.
Member of Rera-K Vishnuvardhan Reddy said that the decision was taken after assessing problems on the ground. When the lockdown is lifted, builders might face problems in mobilising resources and starting immediately, so the authority has extended the deadline only for projects which were to be completed by March 15.
No extension will be given to projects that were recently launched and the completion date for which is about four-five years from now. Welcoming the decision, Kishore Jain, president, CREDAI Bengaluru, said that supply chain disruption, migration of workers and other related issues have completely stalled construction in the state and have had an adverse impact on projects which were to be completed before March 15, 2020.