The Deadline for Project Completion
Under RERA, a developer cannot indefinitely delay a project. At the time of registration, the promoter must submit a sworn declaration stating the exact date by which they will complete the project. However, real estate is vulnerable to unpredictable delays. To balance the interests of buyers and builders, RERA provides specific mechanisms for extending these deadlines under strictly monitored conditions.
Section 6: Extension Due to Force Majeure
According to Section 6 of the RERA Act, a promoter can apply for an extension of the registration if the delay is caused by a Force Majeure event.
- What is Force Majeure? The Act strictly defines this as a case of war, flood, drought, fire, cyclone, earthquake, or any other natural calamity that severely affects the regular development of the project.
- The Time Limit: If the RERA Authority is satisfied that a genuine Force Majeure event occurred, they can extend the project's registration. However, this extension cannot exceed a maximum period of one year in aggregate.
Section 7(3): Extension in Lieu of Revocation
What happens if the one-year extension expires, or if the delay was caused by administrative hurdles rather than a natural disaster?
If a builder fails to complete the project, they face the risk of their registration being completely revoked. However, under Section 7(3), the RERA Authority holds discretionary power. Instead of revoking the registration (which could entirely halt the project and hurt homebuyers), the Authority can permit the registration to remain in force subject to strict new terms and conditions.
This is a last-resort measure. To secure this, builders generally must submit written consent from at least two-thirds of the allottees and prove they have the financial capability to finish the construction.
Rights of the Homebuyer During Extensions
It is crucial to understand that granting an extension of the project's RERA registration does not automatically extinguish your right to compensation.
If the builder invoked Force Majeure (like the COVID-19 pandemic) and the government granted a blanket extension, the builder is temporarily shielded from delay penalties for that specific period. However, if the extension is granted for other reasons (like lack of funds), the buyer's right under Section 18 to claim monthly interest for delayed possession remains entirely intact. You can still file a complaint demanding interest for every month past the originally promised handover date.