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NAREDCO seeks extension from UP RERA to complete real estate projects
Real Estate

NAREDCO seeks extension from UP RERA to complete real estate projects

The National Real Estate Development Council (NAREDCO) for Uttar Pradesh has written to the Real Estate Regulatory Authority (RERA) of UP asking for an additional six months automatic extension for compliance of various orders issued by the authority after construction activities at all real estate projects have come to a complete standstill with the escalation of the second wave of Covid-19 cases.

As per the data given by the Ministry of Housing and Urban Affairs, RERA authorities of respective states have discarded 65,539 cases as of April 24. Nearly 40% of cases (26,150 complaints) among all were resolved in Uttar Pradesh alone.

NAREDCO-UP has also requested state RERA an extension of a similar period for fulfillment of various projects of developers registered with UP-RERA and submission of returns and documents.

NAREDCO, through its letter, conveyed that people in high numbers connected with construction activities have tested Covid-19 positive, and many have even lost their lives.

To restrain any kind of movement to and from these projects, some of the projects have been sealed by the District Administration. The second wave of Covid-19 is considered to be a national natural disaster qualifying for force majeure for all purposes and relief measures are being taken by the government on a war footing basis, the letter stated.

This situation has led the construction activities at all projects to a complete halt as the weekend curfew/lockdown was implemented from April 23.

The letter said, since the Covid-19 cases are increasing at a faster pace and there is no indication of when the situation will improve, it is expected that the construction work will face issues at least for the coming six months. Even post that, it will take time to restore the material supply chain, re-engagement of manpower and machines.

The disruption of construction brought a liquidity crisis among developers as the collections have stopped, and the banks and financial institutions are not releasing funds against flats under their home financing organisation.

Image Source


Also read: NAREDCO asks developers to set up isolation facilities for workers

The National Real Estate Development Council (NAREDCO) for Uttar Pradesh has written to the Real Estate Regulatory Authority (RERA) of UP asking for an additional six months automatic extension for compliance of various orders issued by the authority after construction activities at all real estate projects have come to a complete standstill with the escalation of the second wave of Covid-19 cases. As per the data given by the Ministry of Housing and Urban Affairs, RERA authorities of respective states have discarded 65,539 cases as of April 24. Nearly 40% of cases (26,150 complaints) among all were resolved in Uttar Pradesh alone. NAREDCO-UP has also requested state RERA an extension of a similar period for fulfillment of various projects of developers registered with UP-RERA and submission of returns and documents. NAREDCO, through its letter, conveyed that people in high numbers connected with construction activities have tested Covid-19 positive, and many have even lost their lives. To restrain any kind of movement to and from these projects, some of the projects have been sealed by the District Administration. The second wave of Covid-19 is considered to be a national natural disaster qualifying for force majeure for all purposes and relief measures are being taken by the government on a war footing basis, the letter stated. This situation has led the construction activities at all projects to a complete halt as the weekend curfew/lockdown was implemented from April 23. The letter said, since the Covid-19 cases are increasing at a faster pace and there is no indication of when the situation will improve, it is expected that the construction work will face issues at least for the coming six months. Even post that, it will take time to restore the material supply chain, re-engagement of manpower and machines. The disruption of construction brought a liquidity crisis among developers as the collections have stopped, and the banks and financial institutions are not releasing funds against flats under their home financing organisation. Image SourceAlso read: NAREDCO asks developers to set up isolation facilities for workers

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