Punjab & Haryana HC Stays Circular Issued by RERA providing blanket extension to all projects in the name of Covid -19

 (Another way of Exploiting Consumers)

Petition moved by one Vinod Kumar, challenging Punjab RERA's circular dated May 13, 2020 extending the period of validity of registration of projects by six months. It was alleged that the circular was issued to give relief to those projects whose registration was expiring on or before March 15, 2020, by treating the Covid crisis as a 'Force Majeure'

Allegations put forth by the petitioner were-

·         Those projects whose registration has expired long back had been extended by six months. Due to this, several small-time home buyers were suffering as the builders had stopped work.

·         Power to issue circulars/ notifications of this nature vests in the State Government and not in the adjudicatory bodies. At best, RERA could have entertained an application under Section 84 or 85 of the RERA, 2016. However, no such application was moved in the instant case.

The bench of Justice Rajan Gupta and Justice Karamjit Singh was "surprised" that the RERA had provided blanket extension to all projects, including those that had expired long back

Ref.  - High Court of Punjab &Haryana

 (Order Dated 30 June 2020)