The Real Estate (Regulation and Development) Act, 2016 (RERA) mandates strict timelines for project completion, ensuring homebuyers receive possession as promised. However, there are circumstances beyond the control of builders that can lead to unavoidable delays. In such cases, RERA provides relief under the Force Majeure clause, allowing developers to seek extensions. This blog explores the concept of Force Majeure in RERA, its legal implications, landmark case laws, and recent developments.

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Force Majeure refers to unforeseeable events that prevent parties from fulfilling contractual obligations. Under Section 6 of RERA, developers can seek an extension for project completion if the delay is caused by:

1. Natural calamities such as earthquakes, floods, cyclones, or pandemics.
2. Government-imposed restrictions like lockdowns or policy changes.
3. War, terrorism, or civil unrest leading to disruption in construction.
4. Supply chain disruptions affecting material procurement.

If a project faces such exceptional circumstances, the developer can apply for an extension, which can be granted for a period of up to one year or more based on the severity of the situation.

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If the delay is not due to Force Majeure, the builder must refund the amount paid by buyers with interest or compensate them accordingly.

Section 6 – Extension of Registration

Developers can apply for an extension due to Force Majeure.

The state RERA authority evaluates the claim before granting relief.

Section 8 – Completion of Project by a Third Party

If a builder fails to complete a project despite an extension, RERA may appoint a third party or an external agency to take over the project.

Section 18 – Compensation to Homebuyers

• Developers must register all residential and commercial projects with RERA before advertising or selling.
• The project details, including completion timeline, approvals, and progress, must be uploaded on the respective State RERA portals.

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1. M/s. Pioneer Urban Land & Infrastructure Ltd. v. Govindan Raghavan (2019)

The Supreme Court held that unreasonable project delays cannot be justified under Force Majeure unless the developer provides substantial proof of an uncontrollable event.

2. Swami Vivekananda Welfare Association v. Union of India (2021)

During the COVID-19 pandemic, the Supreme Court acknowledged nationwide lockdowns as a Force Majeure event and allowed project extensions across states.

3. Newtech Promoters and Developers Pvt. Ltd. v. State of UP RERA (2022)

The Uttar Pradesh RERA ruled that a developer claiming Force Majeure must prove that the event directly affected project timelines and that all reasonable steps were taken to mitigate the delay.

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Key Case Laws on Project Delays Under RERA

1. Puneet Kaur v. TDI Infrastructure Ltd. (2021)

• The Punjab RERA ruled in favor of the buyer, directing the developer to refund the full amount with interest at 12% per annum due to unreasonable project delays.

2. Bikram Chatterjee v. Union of India (2019) – Amrapali Case

• The Supreme Court ordered the cancellation of Amrapali Group’s RERA registration and handed over its unfinished projects to NBCC (National Buildings Construction Corporation) for completion.
• This case strengthened RERA’s authority over fraudulent developers.

3. Imperia Structures Ltd. v. Anil Patni (2020)

• The Supreme Court ruled that homebuyers can seek relief under both RERA and the Consumer Protection Act, allowing them to pursue additional compensation for financial and mental distress.

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1. COVID-19 and Blanket Extensions (2020-2021)

• Many state RERA authorities granted automatic 6–9 months extensions to developers due to the pandemic.
• Maharashtra RERA (MahaRERA) and Haryana RERA (HRERA) extended completion deadlines for ongoing projects.

2. RERA Amendments for Natural Calamities (2023)

• Several states have proposed modifications in RERA rules to define Force Majeure events more clearly, ensuring that both developers and homebuyers are protected.

3. Strict Scrutiny on Force Majeure Claims (2024)

Developers must now submit detailed evidence and project progress reports to justify extensions.

RERA authorities have started rejecting Force Majeure claims where delays were due to financial mismanagement rather than external events.

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How Builders Can Apply for Extensions Under Force Majeure?

Developers seeking extensions under Force Majeure must follow these steps:

1. File an application with the respective state RERA authority citing the reason for delay.
2. Submit documentary evidence, including government notifications, disaster reports, or supply chain disruption proof.
3. Demonstrate efforts to mitigate delays, such as alternative sourcing of materials or partial project completion.
4. Await RERA’s decision—if approved, the extension period is added to the original completion timeline.

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The Force Majeure clause in RERA offers crucial relief to builders facing delays due to uncontrollable events while balancing the rights of homebuyers. However, developers must prove genuine hardship and compliance to qualify for extensions. Recent legal precedents and regulatory developments indicate that RERA authorities are becoming more stringent, ensuring that Force Majeure claims are not misused.

For homebuyers, understanding these provisions helps in evaluating whether a project delay is genuine or an excuse for inefficiency. As RERA continues to evolve, both developers and buyers must stay informed about their legal rights and obligations.