Credai Welcomes Bengal Realty Reforms Seeks 8 Month Force Majeure Relief

Kolkata: CREDAI West Bengal on Monday welcomed the state government's reform push for the real estate sector, particularly its proposed Standard Operating Procedure (SOP) for building safety and regulatory compliance, even as it said scrutiny of 585 of 706 projects identified under a mandatory audit has been completed.CREDAI West Bengal president Sushil Mohta said the developers' body had sought an eight-month force majeure period, citing disruptions caused by the war, SIR, elections and the stop-work period imposed for the mandatory audit.Force majeure refers to unforeseen events beyond a party's control-such as natural disasters, war, pandemics or government restrictions-that prevent or delay it from fulfilling a contractual obligation.The mandatory audit followed the collapse of a warehouse at Taratala here in June, after which construction work on projects covered by the exercise was stopped pending scrutiny.Of the 706 projects identified for the audit, 595 have submitted applications, while 115 are yet to apply. So far, 204 projects have received clearance, 89 have been given a conditional go-ahead, while 26 projects have been found to have major violations.Officials of the Confederation of Real Estate Developers' Associations of India (CREDAI), the apex body of private real estate developers in India, said the data is current as of last Saturday. The technical committee overseeing the exercise has held eight meetings. We welcome the state government's proposed Standard Operating Procedure (SOP) to improve building safety and regulatory compliance. The government has made significant progress in a short span of time. We have asked for an eight-month extension of approvals and completion validity, Mohta said.He said allowing time-bound undertakings for minor deviations was a pragmatic approach that could enable construction to resume while ensuring full compliance. CREDAI assured the government of its cooperation in the scrutiny of pending projects.The association also clarified that the 27 illegal projects recently flagged during the government's special audit did not involve any of its members, saying it did not admit non-compliant builders into its fold. It supported strict action against illegal and unauthorised construction.CREDAI Kolkata's immediate past president Sidharth Pansari said the drive against illegal and unauthorised construction would help genuine developers and enable homebuyers to make better-informed decisions before investing.The association's Kolkata president Apurva Salarpuria said the government's approach would help restart construction activity, benefiting the wider supply chain and the large workforce dependent on the sector, besides boosting investor confidence.CREDAI reiterated that RERA compliance was non-negotiable and advised homebuyers to verify developers' credentials and purchase only properties registered under it.The real estate sector attracts more than Rs 20,000 crore in annual investment in West Bengal, contributes around Rs 7,500 crore to the state exchequer and supports the livelihoods of about 60 lakh people, according to CREDAI. The association described it as the state's second-largest employer after agriculture.CREDAI's delegation had met Chief Minister Suvendu Adhikari, Urban Development and Municipal Affairs Minister Agnimitra Paul, Industries Minister Tapas Roy and senior officials at a government-convened conference in Kolkata on August 6.