New Delhi: The Union Ministry of Housing and Urban Affairs has advised all Real Estate Regulatory Authorities (RERAs) of states to grant a four-month extension to the registration and completion timelines for eligible real estate projects hit by supply chain disruptions due to the Middle East conflict.
The Ministry’s advisory issued on Friday applies to registered projects whose original, revised or extended completion date falls on or after February 28, 2026.
To reduce procedural delays, the Ministry has also recommended that regulators issue a common order covering all eligible projects instead of requiring developers to file separate applications for each project.
Referring to the provisions of the Real Estate (Regulation and Development) Act, 2016 (RERA), the Ministry of Housing and Urban Affairs had said Section 6 allows extension of registration of real estate projects on account of Force Majeure, which includes “war” affecting regular development of a project.
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 an advisory issued on July 31, the Ministry said the prevailing situation in West Asia has disrupted global supply chains, leading to shortages of construction materials and affecting the timely execution of real estate projects.
The department of expenditure, which is under the Finance Ministry, on April 29, classified the West Asia situation as “war” for the purpose of invoking force majeure clauses in government contracts.
The advisory comes after the Confederation of Real Estate Developers’ Associations of India (CREDAI) wrote to the Ministry in April, urging it to direct State RERAs to grant a blanket extension of three to six months and recognise the geopolitical situation as a force majeure event for the sector.
The move has been welcomed by both developers’ bodies, CREDAI and NAREDCO, which said the relief would help developers navigate supply chain disruptions while ensuring projects are completed in an orderly manner.
“The Ministry’s advisory recommending a four-month extension for eligible registered real estate projects is a positive step taken in line with the sector’s request. CREDAI welcomes the Ministry’s timely step towards providing regulatory clarity and the continued support to the sector,” said Shekhar G Patel, President at CREDAI National.
Welcoming the move, Parveen Jain, NAREDCO President, said the advisory was a timely and pragmatic step that acknowledges the impact of geopolitical tensions on construction activity.
“The ongoing geopolitical situation in West Asia has significantly impacted the availability and cost of construction materials, resulting in unavoidable delays in project execution,” he added.
(IANS)
