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MoHUA Advises RERAs to Grant 4-Month Extension Amid West Asia Crisis

UPSC / SSC current affairs note · Economy

Government Policies & InterventionsEconomy

Why in news

The Ministry of Housing and Urban Affairs (MoHUA) has advised State RERA authorities to grant a four-month extension to real estate projects due to supply chain disruptions caused by the West Asia crisis. This move invokes the Force Majeure clause to provide relief to developers and protect homebuyers.

Background

The West Asia crisis has led to supply chain issues, affecting the timely completion of real estate projects. RERA (Real Estate Regulatory Authority) was established under the Real Estate (Regulation and Development) Act, 2016, to regulate the sector and protect homebuyers.

Key facts

in5points
  1. MoHUA has advised State RERAs to grant a four-month extension to real estate projects.

  2. The extension is due to supply chain issues caused by the West Asia crisis.

  3. The move invokes the Force Majeure clause to aid developers.

  4. The advisory aims to provide relief to developers and protect homebuyers.

  5. RERA is a regulatory body set up under the Real Estate (Regulation and Development) Act, 2016.

Prelims pointers

  • Ministry of Housing and Urban Affairs (MoHUA)
  • Real Estate Regulatory Authority (RERA)
  • Real Estate (Regulation and Development) Act, 2016
  • Force Majeure clause

Mains angles

  • Discuss the role of RERA in balancing developer interests and homebuyer protection.
  • Examine the impact of geopolitical crises on the real estate sector and the use of Force Majeure.
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