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Real estate industry bodies CREDAI and NAREDCO have welcomed the Union Ministry of Housing and Urban Affairs' advisory asking state Real Estate Regulatory Authorities (RERAs) to grant a four-month extension for eligible real estate projects affected by disruptions linked to the ongoing West Asia conflict. The advisory, issued under the Force Majeure provisions of the Real Estate (Regulation and Development) Act (RERA), seeks to address delays caused by shortages of construction materials resulting from global supply chain disruptions. Industry leaders said the measure would provide regulatory clarity, ease pressure on developers, help maintain construction quality and reduce the risk of litigation, while urging state regulators to implement the extension without delay.
The Confederation of Real Estate Developers' Associations of India (CREDAI) and the National Real Estate Development Council (NAREDCO) have welcomed the Union Ministry of Housing and Urban Affairs' advisory directing state Real Estate Regulatory Authorities (RERAs) to extend the registration and completion timelines of eligible real estate projects by four months. The industry bodies said the move would help developers manage construction delays arising from disruptions to global supply chains caused by the ongoing conflict in West Asia.
The ministry issued the advisory recently, stating that geopolitical developments in West Asia had adversely affected global supply chains, resulting in shortages of key construction materials and impacting the timely execution of real estate projects. It advised all state RERAs to invoke the Force Majeure provisions under the Real Estate (Regulation and Development) Act (RERA) and grant a four-month extension for eligible registered projects.
The advisory applies to projects whose original, revised or previously extended completion deadlines fall on or after 28 February 2026. The ministry said it had received several representations from stakeholders seeking regulatory relief after supply chain disruptions affected project execution.
Shekhar Patel, President of CREDAI, described the advisory as a positive response to the industry's request for regulatory support. He said the ministry had provided clarity at a time when developers were facing significant challenges due to shortages of construction materials and labour availability arising from the conflict. According to Patel, the recommended extension would allow developers to align project completion schedules with prevailing market conditions while avoiding the need to seek relief on an individual project basis.
Pradeep Aggarwal, Founder and Chairman of Signature Global, said the global supply chain disruptions linked to the situation in West Asia had created unprecedented challenges for the real estate sector by affecting the availability of critical construction materials. He said the government's decision to invoke the Force Majeure provisions and recommend a four-month extension demonstrated an understanding of the operational challenges faced by developers. The additional time, he added, would enable companies to manage material shortages without compromising construction quality.
Parveen Jain, President of NAREDCO, said the geopolitical situation had increased both the cost and scarcity of construction materials, leading to unavoidable delays in project execution. He said the ministry's recognition of these circumstances under the Force Majeure provisions of RERA represented a balanced and timely intervention. Jain urged all state RERAs to implement the advisory at the earliest, adding that the extension would not only provide relief to developers but also protect the interests of homebuyers by facilitating orderly project completion, reducing the scope for unnecessary litigation and improving certainty for all stakeholders.
Source - PTI
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