Why has the Centre stepped in now?
The ministry of housing and urban affairs (MoHUA) says it has received representations from stakeholders in the real estate sector highlighting that the ongoing situation in West Asia has disrupted global supply chains, leading to shortages of construction materials and affecting project execution.
What has MoHUA advised RERAs to do?
The advisory recommends that RERAs issue suitable orders extending the registration and corresponding completion timelines of registered projects by four months where the completion date, revised completion date or already extended completion date falls on or after February 28, 2026.
Importantly, the ministry has also suggested that regulators issue a common order or direction instead of asking developers to file separate applications for every project. This is intended to reduce procedural delays and administrative burden.
Why is this significant for developers?The advisory offers developers regulatory breathing room at a time when rising construction costs and supply constraints have already put pressure on project execution. Without such an extension, developers whose registration period expires could face regulatory action or be required to seek individual approvals from RERAs. A common extension order could reduce uncertainty and help companies focus on project completion rather than compliance.
The advisory is not an automatic blanket relief. State RERAs will still have to decide whether and how to implement it within their respective jurisdictions.
What are the implications for homebuyers?
For homebuyers, the implication is that possession timelines for eligible projects may move back by up to four months. The advisory seeks to ensure projects remain legally registered instead of facing complications because of delays from circumstances beyond developers’ control. The reference to Section 7(3) of RERA is important, as it allows a regulator to keep project’s registration in force instead of revoking it where such action is considered to be in interest of allottees.
What should the industry watch next?
The key questions now are whether all states adopt the advisory uniformly, whether they issue common orders as suggested by MoHUA, and whether they impose additional conditions while granting the extension. The response from Maharashtra, Karnataka, Gujarat, Delhi-NCR and Tamil Nadu will determine the practical impact of Centre’s move on thousands of projects.