Can contractors claim additional compensation owing to COVID?

13 Sep 2021 CW Team

Can contractors claim relief on penalty charges due to delays in delivery? How is RERA dealing with delays due to COVID?

Like most sectors across industries in India, the real-estate sector also experienced a major setback and was adversely hit by COVID-19. In May 2020, Prime Minister Narendra Modi announced special packages to fight the impact of the pandemic, the details of which were announced by Finance Minister Nirmala Sitharaman.

A major relief for contractors under the Atmanirbhar Bharat initiative was the directive to all central agencies, such as the Railways, Ministry of Road Transport and Highways (MoRTH) and Central Public Works Department (CPWD) to provide an extension of up to six months for completion of contractual obligations, including EPC and concession agreements. Accordingly, the Department of Expenditure issued instructions to grant such extension/ relief without imposing any additional cost or penalty on the contractor.

In June 2020, MoRTH approved relief on retention money, which is a part of the performance security till completion of the construction period, and waiver of penalty for delay. The finance minister also declared that the pandemic be treated as a ‘force majeure’ event under the Real Estate Regulatory Act (RERA) 2016. Accordingly, an advisory was issued to all the states and union territories to treat the pandemic as an ‘act of God’ and suo motu extend the completion dates of projects. Additionally, owing to the prolonged nature of the pandemic, the finance minister extended a six-month relaxation and a further three-month extension for all real-estate projects registered under RERA.

Now,
Can contractors claim additional compensation due to COVID?
Can contractors claim relief on penalty charges due to delays in delivery?
How is RERA dealing with delays due to COVID?
In this article, Sonal Verma, Partner, and Fauzia Khan, Associate, Dhir & Dhir Associates, help our contractors understand this and more…

Click here to know more…

Can contractors claim relief on penalty charges due to delays in delivery? How is RERA dealing with delays due to COVID?Like most sectors across industries in India, the real-estate sector also experienced a major setback and was adversely hit by COVID-19. In May 2020, Prime Minister Narendra Modi announced special packages to fight the impact of the pandemic, the details of which were announced by Finance Minister Nirmala Sitharaman.A major relief for contractors under the Atmanirbhar Bharat initiative was the directive to all central agencies, such as the Railways, Ministry of Road Transport and Highways (MoRTH) and Central Public Works Department (CPWD) to provide an extension of up to six months for completion of contractual obligations, including EPC and concession agreements. Accordingly, the Department of Expenditure issued instructions to grant such extension/ relief without imposing any additional cost or penalty on the contractor.In June 2020, MoRTH approved relief on retention money, which is a part of the performance security till completion of the construction period, and waiver of penalty for delay. The finance minister also declared that the pandemic be treated as a ‘force majeure’ event under the Real Estate Regulatory Act (RERA) 2016. Accordingly, an advisory was issued to all the states and union territories to treat the pandemic as an ‘act of God’ and suo motu extend the completion dates of projects. Additionally, owing to the prolonged nature of the pandemic, the finance minister extended a six-month relaxation and a further three-month extension for all real-estate projects registered under RERA.Now,Can contractors claim additional compensation due to COVID?Can contractors claim relief on penalty charges due to delays in delivery?How is RERA dealing with delays due to COVID?In this article, Sonal Verma, Partner, and Fauzia Khan, Associate, Dhir & Dhir Associates, help our contractors understand this and more…Click here to know more…

Infrastructure Urban

06 Apr 2026

InsideFPV Delivers ₹10 Crore Kamikaze Drone Order Under MoD’s EPR Route

InsideFPV, a Surat-based drone technology manufacturer, has successfully executed a ₹10 crore defence contract to supply indigenous kamikaze drones under the Ministry of Defence’s Emergency Procurement Route (EPR). The company completed the delivery of hundreds of FPV kamikaze drone platforms within a rapid two-month timeframe, highlighting its ability to meet urgent military procurement timelines.The supply orders were fulfilled under the emergency procurement mechanism, which is aimed at fast-tracking acquisitions for immediate operational needs. InsideFPV’s quick execution reflects it..

Infrastructure Energy

06 Apr 2026

Vedanta Resources Secures Fitch Upgrade to ‘BB-’, Best Rating Since 2015

Vedanta Resources Limited (VRL), a global player in metals, oil & gas, critical minerals, power and technology, has received a credit rating upgrade from Fitch Ratings, marking its strongest bond rating in over a decade.Fitch has raised Vedanta Resources’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BB-’ from ‘B+’, while maintaining a Stable Outlook. The agency also upgraded VRL’s senior unsecured rating, along with the ratings of US dollar-denominated bonds issued by Vedanta Resources Finance II Plc and guaranteed by VRL, to ‘BB-’.The upgrade represents Vedan..

Real Estate

06 Apr 2026

NAREDCO NextGen NCR Chapter Launched

The NAREDCO NextGen NCR Chapter was recently launched at Excelerate 2026 in Mumbai, marking a key step towards integrating emerging real estate leaders from the National Capital Region with the national platform. The initiative aims to promote sustainable and responsible urban development through collaboration and knowledge exchange.The event brought together young developers, entrepreneurs, and professionals from across NCR, including Noida, Gurugram, Ghaziabad, Faridabad, Bhiwadi, and Meerut. Discussions focused on urban development, finance, sustainability, innovation, and policy, emphasisi..