Maharashtra RERA extends timelines for certain projects; here's why it matters

Maharashtra’s real estate regulator has announced a four-month extension for the completion timelines of certain registered projects, offering developers temporary relief amid ongoing disruptions caused by the Middle East conflict. The decision was made by the Maharashtra Real Estate Regulatory Authority (MahaRERA) on Friday, following an advisory from the Union Ministry of Housing and Urban Affairs dated July 31. This directive asks all state-level RERAs to extend eligible projects by four months, aiming to alleviate challenges faced by developers due to global supply chain issues and unavailability of construction materials. The extension applies specifically to projects registered under MahaRERA with original, revised, or previously extended completion dates falling on or after February 28, 2026. Developers who registered their projects on or after August 1, 2026, will not qualify for this relief. The adjustment will be automatic, eliminating the need for developers to file separate applications. MahaRERA’s Registration and IT department will update project records and modify entries on the authority’s official website accordingly. According to the order, “registered projects whose completion dates, revised completion dates, or extended completion dates fall on or after February 28, 2026, shall stand extended by four months.” The Central government’s advisory followed reports of widespread disruptions in global supply chains, which have impacted the availability of essential construction materials. These disruptions have made it increasingly difficult for developers to adhere to project schedules. For months, industry associations have been advocating for force majeure relief, citing rising input costs and labor shortages. In May, the Confederation of Real Estate Developers’ Associations of India (CREDAI) in Ahmedabad requested a six-month extension from Gujarat RERA, highlighting sharp price increases in materials such as cement, steel, tiles, aluminium, and PVC pipes. Project costs reportedly rose by 10% to 20% during this period. Similar requests were made in other states, including Karnataka, where developers sought three- to six-month extensions due to material and labor shortages. Industry groups later approached the central government, urging recognition of these disruptions as a force majeure event and calling for a standardized extension policy across all states. CREDAI had previously advocated for a blanket three- to six-month extension, emphasizing that the current situation lies outside developers’ control. The Centre had already acknowledged the West Asia conflict as a force majeure factor for government contracts in an April 29 memorandum, granting eligible contracts extensions of two to four months. In response, the July 31 advisory expanded this framework to include real estate projects under RERA, instructing state authorities to offer a uniform four-month extension to qualifying projects. Under Section 6 of the Real Estate (Regulation and Development) Act, 2016, developers may request an extension for projects affected by force majeure, circumstances beyond their control. The Centre has classified disruptions stemming from the West Asia conflict and its effects on supply chains as such circumstances for the purposes of this relief. Normally, failure to meet completion deadlines can result in penalties for developers. Section 18 of RERA allows homebuyers to claim refunds with interest if a developer fails to deliver possession within the agreed timeframe. Compensation may also be available in specific cases. The four-month extension aims to prevent such outcomes for eligible projects. However, for homebuyers, the consequence is likely a delayed possession date, potentially extending by up to four months for affected properties. While the relief is intended to address delays caused by the specified circumstances, it underscores the broader impact of geopolitical tensions on the real estate sector.