Jaipur: With the second Covid wave derailing the real estate sector again this year, many state developers have taken advantage of the special one-year extension of the Rajasthan Real Estate Regulatory Authority (RERA- R).
According to an RERA official, more than 350 promoters who missed deadlines set by themselves for various reasons, including the pandemic, applied online and took an extension.
A source said: “On March 9, the authority allowed promoters to be granted a special one-year extension due to a pandemic, if they applied online for such an extension until March 31. 2021. A special online window has been created for this purpose. As a result, more than 350 developers in the state requested an extension after filing the standard fee. ”
Last year in May, due to force majeure, a 12-month extension was granted to real estate projects expiring on or after March 19, 2020, after a lockout was imposed in the state due to the first wave. Projects that expired before March 19, 2020 were also eligible for the extension if the developer first requests the usual extension and pays the extension fees, standard fees, and penalties. “Since normalcy has not returned after last year, the majority who requested an extension are the same developers, who received support last year. However, there are few defaulters from Bhiwadi who have neither completed the project nor requested an extension, ”a source said.
Previously, after witnessing the second wave, developer associations also demanded an extension of authority. The promoters reasoned, payments were deferred by the government for a very long time, which resulted in poor recovery and reduced revenue collection.
Many have claimed that there was also a cascading effect of the first wave, which has hampered the recovery in the real estate sector for the past six months. “The vicious cycle of the recession had a negative impact on the economy. This has resulted in a reduction in demand, production, employment and income. Many beneficiaries face difficulties in making payment for IMEs. In addition, there is a reduction in purchasing capacity and frequent cancellations, ”said one promoter.