[Breaking] COVID-19 Treated As 'Force Majeure' For Real Estate Projects; Contracts Of Central Agencies Extended By 6 Months : Finance Minister

In the press briefing held the Union Finance Minister Nirmala Sitharaman on Wednesday evening to explain the details of the Rs 20 lakhs crores economic stimulus announced by the Prime Minister Narendra Modi, she said that the COVID-19 pandemic period will be treated as "force majeure" for real estate projects.

"Ministry of Housing and Urban Development will issue advisories to the States/Union Territories to direct the regulatory authorities for treating "COVID-19" period as "Force Majuere" for real estate projects", the Minister said.

The registration and completion date for all registered projects expiring on or after March 25, 2020 can be suo moto extended by six months even without any individual applications. Fresh project registration certificates will be issued automatically with revised timelines.

The regulatory authorities may extend this period by another 3 months. The timelines for various compliances under the Real Estate Regulation and Development Act will also be extended concurrently.

"These measures will de-stress the real estate developers and ensure completion of projects so that homebuyers are able to get delivery of their booked houses within the new timelines", said the Minister.

Govt contracts to be extended by six months.

All Govt of India agencies such as Railways, CPWD, Highway Authority etc will give 6 months extension without any cost to the contractors. They can take additional 6 months to comply with contractual obligations. Govt agencies will release bank guarantees partially to the extent of completed contract work, to increase cash flow for the contractors.

The Minister also added that global tender will be disallowed for government procurement up to Rs 200 crores, to give a boost to local contractors.

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