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Coronavirus: Real estate developers in Bengal seek relief for

Press Trust of India  |  Kolkata 

The real estate developers' association in West Bengal has sought relief under a special provision of the housing regulation for at least six months as the construction works came to a halt in the wake of the coronavirus pandemic.

At least 6 months be considered as an exempted or extended period for the delivery of projects under the 'force majeure' clause of the West Bengal Housing Industry Regulatory Act, 2017, the industry body said on Wednesday.

The 'force majeure' provision states that registration granted to promoters may be extended, an expert said.

"We estimate that it will take at least six months for projects to get back to regular schedule," Credai West Bengal president Sushil Mohta said.

In the absence of such a declaration, projects could turn into "default" due to delay and lead to a "collapse of the real estate industry as a whole", the association said in a letter to the housing department.

The expert said the occurance of a 'force majeure' event protects a party from liability for its failure to perform a contractual obligation.

Mohta said such a declaration would be required not only for the interest of the industry but also for all stakeholders involved, including customers.

Construction workers had already returned to their native places, he said, adding that the supply chain has been severely impacted as lockdown was announced in the state to prevent the spread of COVID-19.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, March 25 2020. 16:00 IST
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