Force Majeure Under RERA: What Builders Can Claim and What They Can’t

nyaykart
Nov 19
5 min read

By NyayKart Legal Team - Experts in RERA, property disputes and regulatory compliance across Maharashtra and India.

When a builder delays the completion of a real estate project, buyers are often left confused when the promoter claims “force majeure” as a defense. Many builders repeatedly misuse this clause to justify delays that have nothing to do with genuine natural calamities or unavoidable circumstances. The Real Estate (Regulation and Development) Act, 2016 (“RERA”) has strict and narrow rules on what constitutes force majeure, and MahaRERA has repeatedly clarified the limits of this defense in several landmark orders.

This article explains what force majeure truly means under RERA, the rights of homebuyers, what delays can and cannot be justified under this clause, and the exact legal procedure for seeking an extension based on force majeure.

What Does Force Majeure Mean Under RERA?

Under Section 6, force majeure refers only to limited extraordinary events such as:

War
Flood
Drought
Fire
Cyclone
Earthquake
Any natural calamity affecting the regular development of the project

This definition is strict, narrow, and restricted to events beyond human control. Ordinary construction delays, labour issues, or administrative failures do not amount to force majeure. A builder seeking an extension must prove that the calamity directly halted the construction activity and made it impossible to proceed.

When Can a Builder Legally Claim Force Majeure?

A promoter can claim force majeure only if the event:

Was unforeseeable,
Directly prevented construction,
Was beyond the builder’s control, and
Had a clear and proven impact on the project timeline.

Examples:

• Cyclone damaging the site

• Government-imposed lockdown temporarily suspending all construction

• Severe flood making the site inaccessible

• Earthquake damaging structural works

In such cases, the builder may apply to MahaRERA for an extension under Section 6.

Limitations on Force Majeure Claims Under RERA

MahaRERA has clearly restricted the use of this defense.

1. Extension Under Section 6 Limited to 1 Year Only

MahaRERA rules state that force majeure extension cannot exceed one year.Beyond this, the promoter must apply under Section 7(3) for further extension.

2. Further Extension Requires Consent or Special Scrutiny

Under Section 7(3):

Builder must obtain 51% consent of allottees, OR
Submit detailed justification and completion plan for MahaRERA scrutiny.

MahaRERA may impose strict conditions, milestone monitoring, or even reject the application.

3. No Automatic Extension

Builders must formally apply with evidence. No builder can simply declare force majeure without RERA approval.

4. Hearing Is Mandatory Before Rejection

MahaRERA must give the promoter a chance to be heard before rejecting a force majeure claim.

What Does NOT Count as Force Majeure?

Many builders misuse the clause. MahaRERA has repeatedly held that the following reasons are NOT force majeure:

Delay in obtaining permissions or approvals
Shortage of labour or raw materials
Contractor or vendor disputes
Financial problems of builder
Machinery failure
Normal monsoon rains in Maharashtra
Delay in internal project management
Change in government taxes (GST, premiums etc.)
Supplier bankruptcy
Builder’s mismanagement or fund diversion

These are regular business risks and cannot be used to avoid liability.

Evidence Required to Prove Force Majeure

A builder must submit strong documentary proof:

• Government notifications declaring calamity

• Lockdown orders

• Site inspection reports

• Photographs showing damage

• Architect/Engineer certificate

• Revised construction schedule

• Contractor affidavits

• Supply chain disruption records

Vague or generic excuses are rejected.

Impact on Buyer Rights - Even After Force Majeure Extension

Even if MahaRERA grants extension, the buyer’s rights remain protected under Section 18.

1. Right to Seek Refund with Interest

If the buyer wishes to exit, the promoter must refund entire amount with interest.

2. Right to Monthly Interest for Delay

If the buyer continues with the project, interest must be paid for the delay beyond the force majeure period.

3. Right to Compensation

For financial loss, mental agony, rental burden, and harassment.

4. Right to Challenge the Extension

Buyers can file:

• Complaint under Section 31

• Appeal before Appellate Tribunalif the extension appears unjustified.

5. Force Majeure Does NOT Remove Liability

It only postpones timelines temporarily. It does not erase buyer rights.

Misuse of Force Majeure: MahaRERA’s Strict Stand

MahaRERA has declared:

• Builders cannot alter or expand force majeure clauses in the Agreement for Sale.

• Any clause giving broader exemptions is invalid.

• Builders cannot claim FM for routine delays.

• FM must be proven with evidence

.• No unilateral extension is allowed.

In multiple 2024 and 2025 appellate orders, RERA and the Tribunal overturned wrongful extensions because:

Delay was caused by approval issues
Builder failed to show direct link with calamity
Builder applied without proper documentation

Actual MahaRERA Case Examples (2024–2025)

Case 1 - Approval Delay ≠ Force Majeure

MahaRERA AT held that delay in clearance from municipal authorities is not force majeure.

Case 2 - COVID Labour Shortage Not Accepted

Builder failed to prove direct impact; FM rejected.

Case 3 - Extension Given but Strictly Monitored

Under Section 7(3), MahaRERA granted final extension with milestone compliance.

What Builders Can Claim

Extension up to 1 year under Section 6
Further extension under Section 7(3) with consent or detailed justification
Temporary exemption from paying interest only for actual calamity period
Waiver or reduction of extension fee (rare and discretionary)

What Builders Cannot Claim (Strictly Prohibited)

Unlimited extensio
FM for ordinary delays
FM for financial crunch
FM for labour/contractor dispute
FM without application and evidence
Avoidance of Section 18 liability
Expanding FM clause in agreement beyond Section 6
FM for non-submission of approvals

Step-by-Step: How a Builder Applies for Force Majeure Extension

1. File an Application on MahaRERA Portal

Under Section 6, with evidence.

2. Submit Documents

• Notifications

• Reports

• Revised timelines

3. MahaRERA Hearing

Authority reviews and may seek more documents.

4. Order Issued

• Extension granted or rejected

• Terms imposed

• Monitoring steps included

Conclusion

Force Majeure under RERA is a narrowly defined legal safeguard, not an excuse for builder negligence. MahaRERA strictly examines every force majeure claim, and only genuine, extraordinary events qualify. Promoters must provide clear evidence and follow the statutory procedure. Buyers maintain their rights to refund, interest, and compensation, even when extension is granted.

With increasing misuse of FM, Maharashtra authorities have become stricter, ensuring that homebuyers are not victimized by false claims. Understanding the legal boundaries helps both promoters and homebuyers assert their rights effectively.

How NyayKart Can Help

If your builder is delaying possession by wrongly claiming Force Majeure, the NyayKart Legal Team can assist you with:

Checking whether the builder’s Force Majeure claim is genuine or misused
Drafting legal notices and asserting your rights
Filing RERA complaints for refund, interest, or compensation
Representing you before MahaRERA and the Appellate Tribunal
Challenging wrongful extensions granted to builders

📞 Book a free consultation today and let NyayKart help you protect your rights under RERA.