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Economic Times
14 hours ago
- Business
- Economic Times
Can builders invoke force majeure clause to delay possession? Know what RERA says
You've been waiting ages for your dream home, and you've always paid all your home loan EMIs on time. But even after all this, actually getting the keys to your flat feels like a distant dream. Why? The developer is not giving you any clear answers, just keeps throwing around the term ' force majeure', which basically means 'uncontrollable circumstances', to justify these delays. But what exactly are these circumstances, also known as 'force majeure ' situations? Do distressed homebuyers have any legal recourse against such delays under RERA? Read on to know more. All you should know about the force majeure clause Section 6 of the Real Estate (Regulation and Development) Act 2016 allows developers to apply for extensions when their projects face delays caused by ' force majeure' events. These events are generally unforeseeable and beyond the builder's control, and so, they need more time to finish the project. Also Read: Even RERA won't help if you commit these 6 mistakes while buying a property According to the Act, a 'force majeure' event is defined as a 'case of war, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature affecting the regular development of the real estate project'. Adds Advocate Pranav Gupta, legal advisor at the Confederation of Real Estate Developers' Associations of India (CREDAI) and expert in real estate matters, 'Real estate developers can use events such as earthquakes, floods, pandemics (e.g., COVID-19), and court injunctions as valid grounds for invoking force majeure '. 'While force majeure i s a legitimate defense, its misuse is a frequent point of litigation. Builders often attempt to classify generic commercial difficulties under this clause, but courts have insisted on a strict interpretation. Judicial pronouncements require developers to show a causal nexus, which means that the event must directly impede performance. To avail relief under this clause, developers must submit credible documentary evidence and a formal application using Form REP-V. ', he explains. Experts say that while RERA has no statutory obligation to grant extensions, it generally does provide extra time to builders in cases of court orders, or the pandemic, where such extensions were granted en masse. Also Read: RERA impact: Homebuyer to get Rs 65 lakh compensation for delay of over 9 years in possession of a home in Delhi NCR However, project extensions on the grounds of financial constraints, shortage of raw materials, or workforce unavailability do not qualify for relief under this clause, since they are seen as occupational risks on the part of the developer. But, according to Harshit Batra, whose firm deals in real estate matters, ' force majeure circumstances also includes, but are not limited to bans/ orders/ regulations on mining activities, regulation of the construction and development activities by the authorities like the National Green Tribunal, Hon'ble Courts and other quasi-judicial authorities on account of the environmental conditions, restrictions on usage of water, shortage of labour and materials, lockdowns, etc'. How long can builders keep extending projects by enforcing force majeure clause? As per Section 6 of the RERA Act, a promoter can request an extension of up to one year by providing valid reasons for the project's though the law specifies that developers can't keep asking for indefinite extensions to delay their delivery obligations, it also mandates that 'no application for extension of registration shall be rejected unless the applicant has been given an opportunity of being heard in the matter'. This means that if the relevant authorities haven't reviewed this extension application, the project might be stuck in a limbo, which also means that there is not much that homebuyers can do regarding the project. According to Gupta, any attempt to stretch this one-year limit under Section 6 must be grounded in documented, exceptional conditions. 'Courts have frowned upon habitual extensions sought under the pretext of continuing uncertainty. But, the key principle here is proportionality — a temporary disruption cannot justify indefinite postponement', he says. Can builders include clauses in the sale agreement that facilitate the auto-extension of the project delivery date? Sometimes, in a bid to protect themselves, builders might try to include auto-extension clauses in the sale agreements, which could potentially give them blanket power to postpone handing over possession, using vague justifications. Frequently, these clauses try to bypass the legal options that the buyers have regarding delivery schedules. However, experts have pointed out that such one-sided clauses are not generally enforceable in standard builder-buyer agreements, and RERA also overrides these clauses. Also, under various other laws, such as the Indian Contract Act and the Consumer Protection Act, such unfair terms can be struck down as unreasonable. Generally, most model RERA sale agreement clearly state that 'the promoter assures to hand over possession of the plot/ unit/ apartment for residential/commercial/industrial/ IT/ any other usage (as the case may be) along with parking (if applicable) as per agreed terms and conditions unless there is delay due to ' force majeure ', court orders, government policy/ guidelines, decisions affecting the regular development of the real estate project. 'If the completion of the project is delayed due to the above conditions, then the allottee agrees that the promoter shall be entitled to the extension of time for delivery of possession of the Plot/ Unit/ Apartment for Residential/ Commercial/ Industrial/ IT/ any other usage (as the case may be)', it further adds. However, it does not state any standard timeline for such extensions, which potentially leaves room for ambiguity. In case the project does not go through due to such ' force majeure ' situations, the allotment automatically stands terminated. Not only will the promoter have to refund the entire amount to the allottee within 90 days, but also inform them 30 days before the termination, adds Batra. Can RERA grant extensions without first consulting buyers involved in the project? 'Starting May 2025, a public notice is required to be issued, i.e. the extensions granted by the relevant RERA will have been made subject to the issuance of public notice in prominent newspapers inviting objections towards the grant of such extensions under Section 6 and for consideration under Section 7(3). This now forms part of a mandatory requirement on the part of promoters', per Batra. Gupta says that while there is no statutory obligation to seek buyer input, RERA's decisions can be challenged if they seem arbitrary or lack transparency. Buyers' associations are free to seek a legal review if such extensions are granted without due process or documentation.
Time of India
17 hours ago
- Business
- Time of India
Can builders invoke force majeure clause to delay possession? Know what RERA says
All you should know about the force majeure clause Academy Empower your mind, elevate your skills How long can builders keep extending projects by enforcing force majeure clause? Can builders include clauses in the sale agreement that facilitate the auto-extension of the project delivery date? Can RERA grant extensions without first consulting buyers involved in the project? You've been waiting ages for your dream home, and you've always paid all your home loan EMIs on time. But even after all this, actually getting the keys to your flat feels like a distant dream. Why? The developer is not giving you any clear answers, just keeps throwing around the term ' force majeure ', which basically means 'uncontrollable circumstances', to justify these what exactly are these circumstances, also known as 'force majeure' situations? Do distressed homebuyers have any legal recourse against such delays under RERA ? Read on to know 6 of the Real Estate (Regulation and Development) Act 2016 allows developers to apply for extensions when their projects face delays caused by 'force majeure' events. These events are generally unforeseeable and beyond the builder's control, and so, they need more time to finish the to the Act, a 'force majeure' event is defined as a 'case of war, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature affecting the regular development of the real estate project'.Adds Advocate Pranav Gupta, legal advisor at the Confederation of Real Estate Developers ' Associations of India (CREDAI) and expert in real estate matters, 'Real estate developers can use events such as earthquakes, floods, pandemics (e.g., COVID-19), and court injunctions as valid grounds for invoking force majeure'.'While force majeure is a legitimate defense, its misuse is a frequent point of litigation. Builders often attempt to classify generic commercial difficulties under this clause, but courts have insisted on a strict interpretation. Judicial pronouncements require developers to show a causal nexus, which means that the event must directly impede performance. To avail relief under this clause, developers must submit credible documentary evidence and a formal application using Form REP-V. ', he say that while RERA has no statutory obligation to grant extensions, it generally does provide extra time to builders in cases of court orders, or the pandemic, where such extensions were granted en project extensions on the grounds of financial constraints, shortage of raw materials, or workforce unavailability do not qualify for relief under this clause, since they are seen as occupational risks on the part of the according to Harshit Batra, whose firm deals in real estate matters, 'force majeure circumstances also includes, but are not limited to bans/ orders/ regulations on mining activities, regulation of the construction and development activities by the authorities like the National Green Tribunal , Hon'ble Courts and other quasi-judicial authorities on account of the environmental conditions, restrictions on usage of water, shortage of labour and materials, lockdowns, etc'.As per Section 6 of the RERA Act, a promoter can request an extension of up to one year by providing valid reasons for the project's though the law specifies that developers can't keep asking for indefinite extensions to delay their delivery obligations, it also mandates that 'no application for extension of registration shall be rejected unless the applicant has been given an opportunity of being heard in the matter'.This means that if the relevant authorities haven't reviewed this extension application, the project might be stuck in a limbo, which also means that there is not much that homebuyers can do regarding the to Gupta, any attempt to stretch this one-year limit under Section 6 must be grounded in documented, exceptional conditions. 'Courts have frowned upon habitual extensions sought under the pretext of continuing uncertainty. But, the key principle here is proportionality — a temporary disruption cannot justify indefinite postponement', he in a bid to protect themselves, builders might try to include auto-extension clauses in the sale agreements, which could potentially give them blanket power to postpone handing over possession, using vague justifications. Frequently, these clauses try to bypass the legal options that the buyers have regarding delivery experts have pointed out that such one-sided clauses are not generally enforceable in standard builder-buyer agreements, and RERA also overrides these clauses. Also, under various other laws, such as the Indian Contract Act and the Consumer Protection Act , such unfair terms can be struck down as most model RERA sale agreement clearly state that 'the promoter assures to hand over possession of the plot/ unit/ apartment for residential/commercial/industrial/ IT/ any other usage (as the case may be) along with parking (if applicable) as per agreed terms and conditions unless there is delay due to 'force majeure', court orders, government policy/ guidelines, decisions affecting the regular development of the real estate project.'If the completion of the project is delayed due to the above conditions, then the allottee agrees that the promoter shall be entitled to the extension of time for delivery of possession of the Plot/ Unit/ Apartment for Residential/ Commercial/ Industrial/ IT/ any other usage (as the case may be)', it further adds. However, it does not state any standard timeline for such extensions, which potentially leaves room for case the project does not go through due to such 'force majeure' situations, the allotment automatically stands terminated. Not only will the promoter have to refund the entire amount to the allottee within 90 days, but also inform them 30 days before the termination, adds Batra.'Starting May 2025, a public notice is required to be issued, i.e. the extensions granted by the relevant RERA will have been made subject to the issuance of public notice in prominent newspapers inviting objections towards the grant of such extensions under Section 6 and for consideration under Section 7(3). This now forms part of a mandatory requirement on the part of promoters', per says that while there is no statutory obligation to seek buyer input, RERA's decisions can be challenged if they seem arbitrary or lack transparency. Buyers' associations are free to seek a legal review if such extensions are granted without due process or documentation.
Zawya
28-02-2025
- Business
- Zawya
ERRA strengthens international partnerships to protect creators rights with agreements in India and Hong Kong
Sharjah: In a strategic move reaffirming its commitment to safeguarding creators' rights and fostering global partnerships in reprographic rights protection, the Emirates Reprographic Rights Management Association (ERRA) has signed two new agreements with the Indian Reprographic Rights Organisation and the Hong Kong Reprographic Rights Licensing Society. This collaboration follows the resounding success of the inaugural International Reprographic Rights Conference, recently held in Sharjah, where dynamic discussions laid the groundwork for robust global partnerships in this vital field. The partnership aims to facilitate the exchange of protected creative content among the three entities, ensuring that authors and publishers receive fair remuneration for the use of their works. These agreements reflect the signatories' commitment to compensating rights holders in both India and Hong Kong, while also developing more efficient mechanisms to safeguard intellectual property, especially in the face of challenges posed by the digital revolution. Empowering Creativity and Creators Majd Al Shehhi, Director of Emirates Reprographic Rights Management Association (ERRA), highlighted that this collaboration strengthens the association's role in protecting creators' rights both in the UAE and internationally while raising awareness of the importance of reprographic rights in advancing the publishing sector and supporting creativity. She stated: "This partnership marks a significant step towards empowering creators to monetise their intellectual output fairly and sustainably. Strengthening international cooperation is essential to ensuring the sustainability of the publishing sector and fostering creativity in the digital era, which demands innovative strategies for intellectual property protection." She further noted that this initiative reinforces the association's position as a key player in supporting the creative economy and expanding its global network with organisations dedicated to reprographic rights protection. Pranav Gupta, representative of the Indian Reprographic Rights Organisation, expressed his enthusiasm about the agreement, stating: "This initiative is a major boost for international cooperation in protecting authors' and publishers' rights. The exchange of intellectual assets among organisations will help creators expand their reach globally while ensuring they receive their rightful earnings in international markets. We look forward to further strengthening this partnership and exploring new avenues for collaboration in safeguarding the rights of writers and publishers." Similarly, Wong Sharon, Executive Director of Hong Kong Reprographic Rights Licensing Society, emphasised that the agreement underscores the three parties shared commitment to protecting creators' rights and advancing the global publishing industry. She noted: "Our collaboration with ERRA aims to establish frameworks that ensure the fair use of creative content while enabling authors and publishers to maximise returns on their work. We believe this partnership will contribute to a sustainable creative ecosystem and enhance public awareness of reprographic rights as a cornerstone of cultural innovation and production." UAE's Leadership in Creativity Protection This partnership reaffirms the UAE's leading role in supporting creators, as such collaborations open wider opportunities for authors and publishers to access global markets, ensuring international exposure while safeguarding their rights. This, in turn, strengthens the UAE's position as a regional and global hub for intellectual property protection. The agreement stands as a practical model of how international efforts can be unified to protect creators and enable them to benefit both financially and morally from their work. By fostering an environment that encourages creativity and innovation, these efforts are expected to lead to further expansions in global partnerships in the coming years, ensuring the sustainability of the publishing sector and the protection of creators' rights amid rapid digital transformations.
Yahoo
27-01-2025
- Business
- Yahoo
Global book publishers sue OpenAI for copyright violations in
Indian book publishers and their international partners have filed a copyright lawsuit against OpenAI in New Delhi, alleging misuse of proprietary content, reported Reuters citing a representative. The case, which was filed in December 2024, alleges OpenAI, an AI research company backed by Microsoft, of improperly accessing proprietary content for its ChatGPT chatbot. The Federation of Indian Publishers, representing a coalition that includes Penguin Random House, Bloomsbury, Cambridge University Press, and Pan Macmillan, as well as Indian publishers Rupa Publications and and Co, has filed a lawsuit at the Delhi High Court. The federation's legal action seeks to address concerns that OpenAI's ChatGPT chatbot has been using copyrighted material without permission. Despite the allegations, OpenAI has maintained that its AI systems are designed to make fair use of publicly available data. The Indian federation's filing in December, reviewed by Reuters, claims to have "credible evidence/information" that OpenAI has utilised their literary works to train ChatGPT. The matter was initially reviewed by a court registrar in New Delhi, who, on 10 January 2025, instructed OpenAI to respond to the allegations. The case is set to be heard by a judge on 28 January. The Federation general secretary Pranav Gupta was cited by the news agency as saying in an interview about the lawsuit: "Our ask from the court is that they should stop (OpenAI from) accessing our copyright content. 'In case they don't want to do licensing with us, they should delete datasets used in AI training and explain how we will be compensated. This impacts creativity.' In November last year, Indian news agency ANI sued OpenAI in Delhi, accusing it of using ANI's content without permission to train ChatGPT. However, OpenAI responded on 10 January with an 86-page filing at the Delhi High Court, addressing ANI's demand to delete its data from ChatGPT. OpenAI has argued that complying with an order to delete training data would conflict with its US legal obligations and that Indian courts lack jurisdiction since its servers are not located in India, reported the news agency. However, the federation contends that OpenAI's provision of services in India should subject the company to Indian copyright laws. "Global book publishers sue OpenAI for copyright violations in" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
