Govt grants 4-month extension to real estate projects delayed due to West Asia crisis
New Delhi, July 31
The Union Ministry of Housing and Urban Affairs has advised all Real Estate Regulatory Authorities of states to grant a four-month extension to the registration and completion timelines for eligible real estate projects hit by supply chain disruptions due to the Middle East conflict.
The Ministry's advisory issued on Friday applies to registered projects whose original, revised or extended completion date falls on or after February 28, 2026.
To reduce procedural delays, the Ministry has also recommended that regulators issue a common order covering all eligible projects instead of requiring developers to file separate applications for each project.
Referring to the provisions of the Real Estate (Regulation and Development) Act, 2016 (RERA), the Ministry of Housing and Urban Affairs had said Section 6 allows extension of registration of real estate projects on account of Force Majeure, which includes "war" affecting regular development of a project.
Under Section 7(3) of RERA, the Authority may, instead of revoking the registration, permit it to remain in force subject to such terms and conditions as it considers appropriate in the interest of the allottees, it said.
In an advisory issued on July 31, the Ministry said the prevailing situation in West Asia has disrupted global supply chains, leading to shortages of construction materials and affecting the timely execution of real estate projects.
The department of expenditure, which is under the Finance Ministry, on April 29, classified the West Asia situation as "war" for the purpose of invoking force majeure clauses in government contracts.
The advisory comes after the Confederation of Real Estate Developers' Associations of India (CREDAI) wrote to the Ministry in April, urging it to direct State RERAs to grant a blanket extension of three to six months and recognise the geopolitical situation as a force majeure event for the sector.
The move has been welcomed by both developers' bodies, CREDAI and NAREDCO, which said the relief would help developers navigate supply chain disruptions while ensuring projects are completed in an orderly manner.
"The Ministry's advisory recommending a four-month extension for eligible registered real estate projects is a positive step taken in line with the sector's request. CREDAI welcomes the Ministry's timely step towards providing regulatory clarity and the continued support to the sector," said Shekhar G Patel, President at CREDAI National.
Welcoming the move, Parveen Jain, NAREDCO President, said the advisory was a timely and pragmatic step that acknowledges the impact of geopolitical tensions on construction activity.
"The ongoing geopolitical situation in West Asia has significantly impacted the availability and cost of construction materials, resulting in unavoidable delays in project execution," he added.
— IANS
Reader Comments
As someone who's waiting for possession of my flat in Pune since last year, this extension is double-edged sword. Yes, supply chain is a real issue, but who's protecting the interest of homebuyers who are paying EMI on their home loans while the project remains incomplete? Need more transparency and regular updates from RERA.
Good move, but a common order for all eligible projects was long overdue. Why should developers run from pillar to post with individual applications? The bureaucracy waste costs money and time. Appreciate the Ministry's proactive stance this time, hope implementation is smooth across all states.
Yeh advisory acha hai for genuine cases, but what about those developers who misuse force majeure? I've seen cases where they conveniently blame "war" and "delays" but the actual progress is very slow. RERA should monitor projects affected and ask for regular compliance reports before giving extension. Dil ki baat bol di maine 🙏
This is a really thoughtful reflection of what ground reality is. I work with a building materials supplier in Delhi, and we've struggled with price spikes and availability from Europe and China shipments. Four months is realistic — should give builders some breathing room. But I'd like to see clear definition of "eligible projects" to avoid unnecessary litigation later.
Nice to see the Indian government making pragmatic decisions in the face of geopolitical uncertainties. This advisory reminds me of similar force majeure extensions in the US during the pandemic. The common order approach is particularly smart - reduces paperwork and ensures speed. Hope to see more such quick thinking in the future.
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