The  Real Estate (Regulation and Development) Act, 2016,here in after referred to as “RERA”, is a central piece of legislation that aims to put the real estate sector within its reach and thus reconcile the interests of Allotted and the executing agency of the project. The RERA was enacted to help alotés affected by the actions of their manufacturers. These facilities include the late return of the client’s property to Allote, the resolution of disputes between the parties, the elimination of the client’s monopoly, the modification of the unilateral clauses of the agreement, etc. In the history of the real estate industry, natural disasters have had a major impact on the real estate market. Right now, everyone is in a situation where it is very risky to get out of the shelter and live a normal life because this is the new standard that we must adopt as a society.

According to the latest trends and developments after the entry into force of the Real Estate (Development and Regulation) Act, 2016:

  • Approximately 48,000 cases submitted to the RERA Court have been settled since its inception with the Uttar Pradesh Real Estate Regulatory Authority as the main court.
  • Numerous judgments of the judicial authorities have corrected the unilateral provisions of the construction contract that used to harm the participants.
  • Assignees have gained confidence in the judiciary by speedily resolving disputes between assigns and contractors.
  • The alternative dispute resolution mechanism made available to appointees after the Real Estate Authorities Act 2016 came into effect is simpler compared to previous court cases, and in the post-pandemic scenario, Audiences Virtual services have helped further reduce the allowance that Pleasure  can stay home from.

After examining the unmeasurable effects of the new coronavirus, the government changed the definition of epidemic disease by modifying the 2020 regulation that modifies epidemic diseases and amended the 123-year law. Furthermore, COVID-19 is now also considered a force majeure event, which has also affected all the agreements that were made and should be made after the COVID-19 situation.

Impact of:

1) The inauguration date between the Lockdown period (cf. 03/22/2020) has been postponed because the apartments available to take over have not been completed without compensating for the extended period for what was granted…

2) The apartments under construction have been delayed due to the unavailability of construction materials, workers, transportation, etc. The restrictions have disrupted supply chains and have resulted in a shortage of raw materials.

3) The migrant workforce, which previously accepted all strict working conditions on the client, is no longer available for a quick start after unlocking, as various government programs like MNREGA and PM Gareeb Kalyan Anna Yojana offer a salary Minimum security. And the free essentials at the door won’t let them live.

4) The real estate sector, which is already financially stressed, will continue to face the financial crisis due to the lower availability of available liquidity due to the real estate investors stressed by the protest.

5) The prices of the constructor’s already available stock must be reduced to obtain funds for potential projects in the plan.

6) In the pre-pandemic situation, there was a balance between participants who opted for full repayment with interest and those who opted for late ownership with compensation. In the current scenario, due to a shortage of available cash, the Allottee will require a full refund of the Allottee, further affecting the manufacturer’s liquidity.

7) For the time being, buyers are reluctant to book underdeveloped projects and prefer to move into apartments, as this greatly minimizes the risk.

8) Once the situation is normalized, there are more possibilities of excessive delays and scarcity of resources, since the economy and its resources will take time to normalize and, as a result, the builders will be punished and even delayed. bars due to excessive delays.

9) The stage is now reached when the monsoon approaches the country. After all, due to the difficult situations this season, it wouldn’t be possible to create activities for a quick start.

All things considered

  • The only way builders and contractors hire workers are by offering additional wages or incentives, including safe working conditions.
  • To compensate for these types of situations, RERA offers project leaders an extension of one year at the end of projects if the delay is beyond their control. This can help them regain the trust of their customers.
  • RBI must further reduce the repurchase rate and ask banks to pass these benefits on to consumers, which will ultimately prove to be a strong mechanism for the real estate industry.
  • Relaxation of the RERA compliance standards for residential projects and exemption from payments (including the component of interest) for developers of up to three months and later depending on the basic realities.
  • A lower loan interest rate must be offered for real estate development and the NPA (No Performing  Asset) rating for stressed projects that extend beyond the current 90 days.

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