#RealtyNewsRoundUp: Developers Can’t Use Force Majeure For Lack Of Approvals, Finances, Rules MahaRERA

Developers cannot use the force majeure clause for financial crisis and lack of approvals in any project, ruled the Maharashtra Real Estate Regulatory Authority (MahaRERA) in a recent order against Hindustan Construction Company’s subsidiary Lavasa Corporation. The ruling also assumes significance as this is the only order passed by the authority against Lavasa before the national Company Law Tribunal (NCLT) admitted a plea filed by its creditors, who had initiated the corporate insolvency resolution process under the Insolvency and Bankruptcy Code 2016 (IBC).

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According to media reports, the Noida Authority in a month or two might be ready with an online facility that would allow property owners — homebuyers, developers, businesses and brokers — to make online payments of lease agreements, water bills, sewage charges, et cetera. The authority also plans to use this system to keep digital financial records of every property in the city.

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To improve road infrastructure in new sectors, the Haryana government might give builders permission to increase the floor area ratio (FAR). The extension will only be allowed to developers, who build approach roads to residential societies built by them. The Gurugram Master Plan 2031 includes the development of new sectors between 58 and 115, including those around the Dwarka expressway.

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An 11-member high-level committee has recommended that the Uttar Pradesh government allow registry of a flat at the circle rate prevalent when possession of the dwelling unit was promised by a builder. Currently, if the builder delivers a flat after a delay, the stamp department imposes fee based on the existing circle rate which increases the financial burden on homebuyers.

Source: Media reports