After Maha, Karnataka RERA extends deadline of realty projects by 3 months

In view of the country-wide lockdown on account of the novel coronavirus, or COVID-19, pandemic, Karnataka Real Estate Regulatory Authority has become the second authority after the Maharashtra Real Estate Regulatory Authority (MahaRERA) to extend the validity period for registration of real estate projects by three months.

Due to the lockdown, the supply chain for obtaining construction materials has been disrupted and labour workforce may have migrated back to their home states. Under these circumstances, real estate projects across Karnataka will take some time to restart work, a circular issued by the Karnataka Real Estate Regulatory Authority said.

"All RERA registered projects, whose completion date (including revised completion date) expires on or after March 15, has been extended by three months until June 30," the circular stated.

KRERA shall accordingly issue project registration certificates with reused timelines for such projects at the earliest, it added.

“All complaints cases listed for hearing up to April 14 before the KRERA and the adjudicating officer have been adjourned, except for urgent cases. This is to avoid gathering of litigators, lawyers and visitors. The next date of hearing in each case will be posted on the authority’s website,” it said.

Currently, there are more than 3,000 projects registered under RERA. Homebuyers said that they concur with this decision.

"But going by the impact of migration of construction labourers, efforts must be made by the government as well by builders to ensure the labour forces are retained and supported to ensure resumption of work once upon lifting of the curfew sooner or earlier," MS Shankar, Secretary, Forum for People's Collective Efforts, told Moneycontrol.

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Real estate developers too have welcomed the move. “This proactive step by KRERA of extending the deadline of the residential projects is a welcome move as the COVID-19 pandemic has affected the real estate industry in recent days. Supply chain disruption, migration of workers and other related issues have completely stalled the construction work in the state and badly impacted the under-construction projects which were scheduled to complete before March 15,” Kishore Jain, President, CREDAI Bengaluru, said.

Last week, MahaRERA extended the time limits of all statutory compliances in accordance with the Real Estate (Regulation and Development) Act, 2016 that were due in March, April and May to June 30.

It had also noted that due to the lockdowns, the supply chains for obtaining construction material have been disrupted and labour force may have migrated back to their home states. Due to these circumstances, real estate projects across Maharashtra will take some time to restart work.

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