Relief measures announced by different government authorities have provided no immediate relief to the home buyers. Builders did get an extension for realty projects.
By Varun Singh
In the last few days the real estate builders have received reliefs measures from Ministry of Housing and Urban Affairs, Ministry of Finance and Real Estate Regulatory Authorities.
The relief measures include Force Majeure benefits, and even extension of project deadlines. But the homebuyers have not received any immediate relief or help, neither in the form of interest nor EMI or rent waivers.
Two practicing lawyers who have been connected to the issues of housing sector for quite long time expressed their opinions on the issue with Square Feat India.
According to Adv Sunil Kewalramani, with the reliefs provided to the builders, they will be protected as they will not be liable to pay any penalties to the RERA authority or the homebuyers for 6 months which is further extendable to more 3 months (at the discretion of State RERA regulatory authorities). But these reliefs do not seem to offer any immediate relief in the form of EMI waivers or Interest waivers or Rent waivers for the home-buyers.
Kewalramani further states, that the only relief which as of now a home-buyer is expected to get is that which the Finance ministry in its statement said that “This measure will save the projects and enable the developers to complete the projects within the revised time lines thereby safeguarding the interest of home buyers as it will ensure delivery of their booked flats/homes within the revised timeline. Delay of a few months is certainly better than not getting booked houses at all,”
Adv Prakkash Rohira, citing the preamble of the Real Estate (Regulation and Development) Act, 2016 under which the MahaRERA authority was established says that amongst establishing regulation and promotion for developers to be in an efficient manner, the preamble explicitly contains thereto the words “and to protect the interest of consumers in the real estate sector”
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“Interpreting the statute literally, the rights of the homebuyers are of great concern and importance under the Act. In my opinion, the Authority should have issued notifications reassuring the buyers who have pending disputes being adjudicated by the developer, and not given a blanket extension to all projects,” said Rohira.
MahaRERA on Monday issued an order invoking Force Majeure for realty projects because of Covid-19 Pandemic.
Rohira says, “It is understandable that encouraging a developer and ensuring the project is completed is intended through the said order, but on examining the intent of the Act, relief or reassurance to the consumers stands due. In my Opinion, waiver of interest/penalty payable by builders to consumers should be identified separately, on factual grounds only to those who establish that the delay was caused due to the lockdown, and not due to prevailing circumstances.”
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Meanwhile, Kewalramani, has also listed the reliefs that a homebuyer should receive from the government.
He says, “The government of India should understand and give reliefs to the home-buyers as it is difficult for them with a pay-cut from their employer, to pay EMI and Rent simultaneously due to delay in possession of flat due to Force Majeure events like Covid-19.
Some of the relief measurers that homebuyers expect are as follows.
- The Central Government should waive interest (interest part on the principal amount) on home loans during the Covid-19 ‘force majeure’ period for the home-buyers.
- The Home-buyers who have purchased the property directly from Builders and who now find themselves unable to fulfill their obligations under contract due to disruption caused by Covid-19. These home-buyers should be allowed 6 months extension or Force majure period extension to fulfill their part of contract, like for making payment dues, entering into an registered agreement, etc.
- The home buyers should be protected from having their booking fee or deposit forfeited by the developer or their allotment of flat being cancelled, due to being unable to perform their part of contract due to disruption caused by Covid-19.
Also Read: Force Majeure for realty projects till 14th September
