Latest news with #RERA
Economic Times
8 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
11 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.
Time of India
18 hours ago
- Business
- Time of India
Sobha to invest ₹800 crore in residential project in Greater Noida
NEW DELHI: Bengaluru-based Sobha plans to invest ₹800 crore in its maiden residential project - Sobha Aurum in Greater Noida . The company has received Uttar Pradesh RERA approval for the project, which will come up in Sector 36. The project spread over 3.46 acres and have a total development potential of approximately 9.3 lakh sq ft. It comprises two towers with a total of 420 residential units, including 1, 2, 3, and 4 BHK configurations. Unit sizes range from 739 sq ft for 1BHKs to over 2,300 sq ft for 4BHKs. According to project details, prices begin at ₹1.12 crore for 1BHK units and extend up to ₹3.48 crore for 4BHK apartments.
Time Business News
a day ago
- Business
- Time Business News
How Digital Platforms Are Transforming Homebuying in India
India's real estate market is rapidly evolving due to digital platforms that make homebuying faster, smarter, and more accessible than ever before. Homebuying used to involve visiting multiple sites, completing extensive paperwork, and dealing with agents, but now it's a smooth and easy process online. Whether you're buying your first apartment or investing in a second home, digital tools have changed the way people search, evaluate, and close property deals. One of the key contributors to this revolution is Houssed, a trusted digital platform that helps homebuyers discover, compare, and invest in properties with confidence. Key Ways Digital Platforms Are Changing the Homebuying Process 1: Virtual Property Tours and 3D Walkthroughs One of the most significant changes is the availability of virtual property tours and 3D walkthroughs. It allows buyers to explore every part of a home remotely, without needing to visit in person. Instead of spending weekends visiting multiple properties, users can take digital tours of numerous listings from the comfort of their homes. This is especially helpful for NRIs or out-of-town buyers who can't physically attend site visits. 2: AI-Powered Property Recommendations Modern platforms are also leveraging artificial intelligence (AI) and machine learning to personalise search results. Based on browsing behaviour, budget, location preferences, and past interactions, platforms like Houssed offer customised property suggestions that align with the user's unique needs. This not only saves time but also improves the decision-making process by narrowing down choices based on intelligent data. 3: Online Booking and Digital Payments Today, buyers can pay booking amounts digitally and even receive transaction receipts in real-time. Some platforms integrate UPI, net banking, and card payments to secure bookings instantly. With digital payment gateways and secure transaction models, this step has become faster, safer, and more convenient than ever before. 4: Verified Listings and Transparent Information Digital platforms offer verified property listings, ensuring that users only see options that meet quality and legal standards. Details like RERA numbers, builder reputations, floor plans, project timelines, and customer reviews are readily available. This transparency helps buyers to make informed decisions, reducing the likelihood of fraud or misinformation, a common challenge in traditional markets. 5: Integration of Legal and Financial Services Many real estate platforms now act as one-stop solutions, offering access to legal advisors, loan partners, and financial calculators. These services assist users with paperwork, home loan approvals, and legal verification, simplifying what was once a daunting process. This integration ensures smoother transactions and reduces the hassle of dealing with multiple parties separately. Benefits of Using Digital Platforms for Homebuying 1: Time and Cost Savings By digitising the search and selection process, buyers save hours—if not days—of physical travel, follow-ups, and manual comparisons. The availability of side-by-side property comparisons, price filters, and instant contact with sellers or agents also reduces the acquisition cost. 2: Access To a Wider Property Market Online platforms are not limited by geography. A buyer in Pune can browse listings in Bangalore, Hyderabad, or Mumbai without any restrictions. This pan-India reach is particularly beneficial for NRIs and investors seeking the best returns across cities. 3: Enhanced Trust and Transparency With verified listings, detailed builder profiles, video reviews, and customer feedback, buyers feel more confident about their choices. Trust is further strengthened by integrated RERA verification tools, which allow buyers to confirm the legal status of the property. Impact of Government Initiatives on Digital Real Estate Government programs have played a major role in driving the digital transformation of India's real estate market, improving transparency, trust, and accessibility. RERA (Real Estate Regulatory Authority): Introduced in 2016, RERA made it mandatory for developers to register projects and disclose key details. Most real estate platforms now display RERA-verified listings, helping buyers make informed, fraud-free decisions. Introduced in 2016, RERA made it mandatory for developers to register projects and disclose key details. Most real estate platforms now display RERA-verified listings, helping buyers make informed, fraud-free decisions. Digital India Mission: Launched in 2015, this initiative improved internet access and digital literacy, enabling more people—especially in Tier 2 and Tier 3 cities—to explore, compare, and book properties online. Launched in 2015, this initiative improved internet access and digital literacy, enabling more people—especially in Tier 2 and Tier 3 cities—to explore, compare, and book properties online. Smart Cities Mission: Aimed at creating tech-enabled urban spaces, this program has increased demand for smart housing. Real estate portals now feature these projects, making it easier for buyers to discover future-ready homes online. Challenges and Considerations in Digital Homebuying Despite its many benefits, digital homebuying comes with its own set of challenges: Lack of physical interaction : While virtual tours are helpful, they can't fully replace the tactile feel of visiting a property in person. : While virtual tours are helpful, they can't fully replace the tactile feel of visiting a property in person. Digital literacy gaps : Older generations may still prefer traditional methods due to limited tech savviness. : Older generations may still prefer traditional methods due to limited tech savviness. Overwhelming choices : With hundreds of listings online, some users may feel lost or confused without proper guidance. : With hundreds of listings online, some users may feel lost or confused without proper guidance. Fraudulent listings: Though decreasing, some platforms may still display unverified or duplicate listings, making it essential to use trusted sources. Buyers should always cross-check developer credentials, ask for RERA registration, and rely on platforms with robust verification systems. Future of Digital Homebuying in India The future of real estate in India is clearly moving toward digital solutions. With emerging technologies like blockchain for smart contracts, augmented reality (AR), and AI-driven pricing models, the next few years are expected to bring even greater innovation to the sector. Digital platforms are combining real estate expertise with technology to ensure a streamlined, transparent, and user-friendly homebuying experience. As trust in digital platforms grows and government policies encourage online transparency (e.g., mandatory RERA registration), the shift toward a fully digital real estate ecosystem is inevitable. TIME BUSINESS NEWS
Business Standard
2 days ago
- Business
- Business Standard
Arkade Developers acquires redevelopment project in Goregaon West, Mumbai
Arkade Developers acquires redevelopment rights of a strategically located society in Bangur Nagar, Goregaon West. Spread across 1.1 acres, the site offers a RERA saleable area of approx. 86,000 sq. ft and an estimated revenue potential of Rs 350 crores. The project will feature a mix of residential and commercial spaces, further strengthening its footprint in the Western suburbs. This marks the company's 5th acquisition in the Goregaon- Malad micro-market in recent times. Furthermore, Arkade Developers has 4 completed and 3 ongoing projects within this residential belt. The upcoming development is designed to offer thoughtfully planned homes with a configuration mix of 2 and 3 BHK's. Strategically positioned with excellent connectivity and robust social infrastructure, this project adds significant value to Arkade Developers' growth strategy in Mumbai's western market.
