With the second Covid wave derailing the real estate industry again this year, many developers in the state have availed the one-year special extension from the Real Estate Regulatory Authority, Rajasthan (RERA-R).
According to a RERA official, over 350 promoters who failed to adhere to self-set deadlines for various reasons, including the pandemic, had applied online and taken extension.
A source said, “On March 9, the authority had allowed the promoters to avail one year special extension on account of pandemic, if they apply online for such extension till March 31, 2021. A special online window was created for this purpose. Following this, more than 350 developers in the state applied for extension after depositing standard fee.”
Last year in May, on the ground of force majeure, extension of 12 months was granted to the real estate projects expiring on or after March 19, 2020, after lockdown was imposed in the state owing to the first wave. Those projects that had lapsed before March 19, 2020 were also allowed the benefit of the extension if the promoter first applies for usual extension and pay extension fee, standard fee and penalty. “As normalcy did not return after last year, majority who sought extension are same developers, who were provided relief last year. Though, there are few defaulters from Bhiwadi who neither completed the project nor applied for extension,” said a source.
Earlier, after witnessing the second wave, the developers associations also demanded an extension from the authority. The developers reasoned, instalments have been deferred by the government for a very long period which has resulted in poor recovery and reduced revenue collection.
Many claimed there is also a cascading effect of the first wave, which has hampered recovery in the real estate sector in the last six months. “The vicious cycle of recession had impacted the economy adversely. This has resulted in reduction in demand, production, employment, income. Many allottees are facing difficulty in making payment of EMI. Also, there is reduction in buying capacity and frequent cancellations,” said a promoter.