Maha RERA extends completion deadline for realty projects by 3 months
In a major relief for developers, the Maharashtra Real Estate Regulatory Authority (MahaRERA) on Thursday extended the completion deadline for all registered projects by three months.
 
Further, the authority also extended the time limits of all statutory compliances in accordance with the Real Estate (Regulation and Development) Act, 2016 and the rules and regulations which were due in March, April or AMay are till June 30, 2020.
 
"For all MahaRERA registered projects where completion date, revised completion date or extended completion date expires on or after 15th March 2020, the period of validity for registration of such projects shall be extended by three months. MahaRERA shall accordingly issue project registration certificates, with revised timelines for such projects, at the earliest," said the order.
 
It said that in view of the partial lockdown in the state earlier and the eventual nation-wide lockdown, the construction work in MahaRERA-registered projects has been severely affected and the supply chains for obtaining construction material have been disrupted and labour work force may have migrated back to their home states.
 
"Due to these circumstances, real estate projects across Maharashtra will take some time to restart work. Recognising this, RBI has also allowed banks to provide a three month moratorium on fixed term loans and EMI payments. Therefore, in order to aid government efforts in controlling the damage of COVID-19 and ensure that completion of MahaRERA registered projects does not get adversely affected, it has been decided to issue this order," it said.
 
Developers welcomed the relief from the authority. Ashok Mohanani, Chairman EKTA World said that at a time when there is "mental, social and economic unrest globally, this move brings relief".
 
He noted that the lockdown brought all work to standstill, hence a deadline extension for under construction projects was definitely the need of the hour.
 
Farshid Cooper, MD, Spenta Corporation was of the view that with the country under a 21-day lockdown, there will be several real estate projects which will get delayed because of the pandemic.
 
"We are happy that MahaRERA has extended the timeline for completion of projects by three months, which has given developers time to deal with the situation," Cooper said.
 
President of the National Real Estate Development Council (NAREDCO) Niranjan Hiranandani described the decision as a "proactive" step by Maharashtra RERA.
 
"Even after the lockdown is lifted, it is anyone's guess how long it will take for things to return to normalcy," Hiranandani said.
 
Welcoming the MahaRERA's decision, Nahar Group's Vice Chairperson, Manju Yagnik said that this extension of the deadline for projects in Maharashtra is in sync with RBI's announcement of granting a 3-month moratorium for payment of home loan EMIs and other working capital loans.
 
"We welcome this move in the wake of supply chain disruption, migration of workers and other related issues, as it will take some time for the real estate industry to be on track. A much-appreciated step when the country is under total lock-down to counter the impact of pandemic COVID-19 leading to construction work coming at grinding halt," she said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    pabarirohit

    2 months ago

    Who will bear the accrued interest of 3 months moratorium period?

    Promoters, insiders barred from buying shares till June 30
    In a bid to curb insider trading, security market regulator, Sebi has reportedly prohibited promoters and insiders from buying company shares till June 30, as companies have been given extra time to report earnings with the stock exchanges.
     
    Companies have received additional time to submit their quarterly and annual results in view of the coronavirus crisis and the ongoing lockdown. It means the trading window will have to be closed for promoters and the management from April 1 till 48 hours after declaration of quarterly results.
     
    Sources said, the Securities and Exchange Board of India (Sebi) has turned down request of several promoters to exempt them from extending trading restrictions that apply at the time of results.
     
    An official source said that the rationale behind the decision is that there may be firms in which the financial results may have reached such a stage which although not accurate, may be indicative of the eventual outcome. Such information may be considered a price sensitive information, he added.
     
    Disclosure norms of the regulator require companies to submit their annual financial results to stock exchanges within 60 days of the end of the financial year.
     
    Experts, however, said that the curbs may be relaxed. Several sector experts were also of the view that the move can be detrimental as the market and share prices are going through turbulent times and are at multi-year lows.
     
    Promoters are well positioned to buy shares and cushion the bear run, and the move would keep the market from this very support, they said.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    Lockdown caused repayment delays not be deemed default: Sebi
    Securities market regulator Sebi on Monday eased default recognition guidelines for credit rating agencies in the midst of the nationwide lockdown.
     
    In a circular, Sebi said: "In view of the developments arising due to COVID-19 pandemic and in light of the moratorium permitted by the Reserve Bank of India on loan servicing, working capital facilities etc. for three months, a need for temporary relaxations in compliance by CRAs is felt." 
     
    Accordingly, the regulator instructed CRAs not recognise any default that has occurred due to repayment delays which have been triggered by the lockdown. This would mean that CRAs would not be required to give adverse comment about a company if it delays loan payment is solely due to lockdown related operation challenges in servicing debt. 
     
    "In view of the nationwide lockdown and the three month moratorium/deferment on payment permitted by RBI, a differentiation in treatment of default, on a case to case basis, needs to be made as to whether such default occurred solely due to the lockdown or loan moratorium," Sebi said in the circular. 
     
    "Accordingly, based on its assessment, if the CRA is of the view that the delay in payment of interest, principle has arisen solely due to the lockdown conditions creating temporary operational challenges in servicing debt, including due to procedural delays in approval of moratorium on loans by the lending institutions, CRAs may not consider the same as a default event and/or recognize default." 
     
    Furthermore, CRAs timelines for rating action has also been relaxed. 
     
    "However, CRAs should endeavour to finish the exercise on a best effort basis. Such cases shall be put up for ratification by the Rating Sub-Committee of the Board of CRA," the circular read. 
     
    "Further, an extension of 30 days is being granted for making annual and semi-annual disclosures by CRAs on its website for the period ended March 2020." 
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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