The third phase of Lockdown in India is set to expire on May 17, 2020. Lockdown 4.0 will bring relaxed norms for public movement, trade, businesses, public transport, and some landmark policy changes by the Government of India.

1. Deadline Extension of Reality Projects by 6 months

Builders and stakeholders have been pressing the authorities to extend the deadline for completion of real estate projects by at least 6 months, as the lockdown brought the construction work to a standstill.

The government of India on Wednesday said, COVID-19 pandemic now will be treated as a Force Majeure (Act of God). All the states and Union Territories will be advised on the application for the same.

What is a Force majeure clause?

Force majeure is a common clause in contracts that essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, epidemic or an event described by the legal term act of God, prevents one or both parties from fulfilling their obligations under the contract. W. (n.d.). Force majeure. Retrieved May 14, 2020, from https://g.co/kgs/vLuQUv

2. Relaxation in FDI policy

The Ministry of Commerce and Industry will be considering a prolonged demand for 100% FDI in completed RERA registered projects with an OC. Projects under consideration shall host at least 100 housing units.

3. Fresh Project Registration Certificates

Projects will be automatically issued fresh Registration Certificates with the revised deadlines. This will reduce the pressure on the already thin supply lines and the manpower.

4. Rs 30,000 Cr Special Liquidity Scheme

Big relief for the cash strapped NBFCs (Non-Banking Housing Finance Company) and HFCs (Housing Finance Company). Debt papers of the NBFCs and HFCs will be guaranteed by the Government of India. First 20% of the loss will be borne by the government.

5. Partial Credit Guarantee Scheme 2.0

The finance ministry aims to infuse liquidity of Rs 45,000 crore in the NBFC market. The Partial Credit Guarantee Scheme was formulated to provide collateral-free credit to small and micro sector enterprises. Version 2.0 of the scheme will induce more liquidity and bond guarantee from the Government of India.

Sources :

1. Khan, A. (2020, May 13). Government extends deadline for realty projects by six months. Retrieved May 14, 2020.

2. Sharma, A. (2020, May 13). Treat Covid-19 as 'Force Majeure' under RERA: Finance Ministry - ET RealEstate. Retrieved May 14, 2020.

3. I. (2020, May 13). Government considers relaxation in FDI policy for real estate - ET RealEstate. Retrieved May 14, 2020.