Still Waiting for Your Property? Understand Force Majeure Clauses Maharashtra

The COVID-19 pandemic created significant disruptions across Maharashtra’s real estate sector. Many builders delayed possession of flats and projects, citing force majeure clauses Maharashtra as a legal defence. But what does this mean for you as a homebuyer? Are all such delays justified?

In this article, we explain the legal implications of force majeure clauses Maharashtra, especially in builder-buyer agreements after the pandemic. Whether you’re struggling with project delays or unclear legal explanations from your builder, understanding your rights is critical.

What Are Force Majeure Clauses Maharashtra?

A force majeure clause is a legal provision in contracts that excuses parties from fulfilling their contractual obligations due to unforeseen events beyond their control. These events typically include natural disasters, war, government-imposed lockdowns, and pandemics.

In the real estate sector, many builders in Maharashtra invoked force majeure clauses Maharashtra during and after the pandemic to delay project completions and possession dates.

1. Legal Framework Supporting Force Majeure Clauses Maharashtra

• Indian Contract Act, 1872

Section 56 deals with the Doctrine of Frustration of Contract. If performing a contract becomes impossible due to unforeseen events, parties can seek relief.

• Real Estate (Regulation and Development) Act, 2016 (RERA)

Section 6 of RERA explicitly allows for an extension of project registration deadlines if a builder faces a force majeure event.

• MahaRERA Notifications

1. MahaRERA declared COVID-19 a force majeure event for the period starting from 15 March 2020.
2. Builders were granted automatic extensions for projects delayed during the official force majeure period.

2. Pandemic Property Delay Legal Challenges

• The pandemic affected property buyers in several ways:

1. Builders Misusing Clauses: Many cited force majeure clauses Maharashtra unnecessarily to avoid penalties or interest.
2. No Compensation Offered: Even after pandemic restrictions eased, many builders failed to compensate buyers for prolonged delays.
3. Lack of Transparency: Builders often failed to update homebuyers about revised timelines and construction progress.

3. RERA Force Majeure Rules: What Builders Must Prove

• Builders must demonstrate a direct connection between the pandemic and the project delay.
• General economic downturn or cash flow problems do not qualify as force majeure.
• Builders must show proof of disruption, such as:
  1. Labour shortages
  2. Government orders halting construction
  3. Supply chain blockages
• MahaRERA requires builders to apply for extensions with proper documentation after the automatic extension period ends.

4. Common Problems Faced by Buyers in Maharashtra

• Builders refuse possession long after the official force majeure period ends.
• Buyers are asked to pay further instalments despite no progress on construction.
• Builders delay completion citing force majeure clauses Maharashtra, but provide no formal extension documents from MahaRERA.
• Builders do not respond to buyers’ demands for compensation or interest for the delay.

5. Practical Steps Homebuyers Can Take

• Check Your Agreement

Review the exact wording of the force majeure clauses Maharashtra in your builder-buyer agreement.

See if pandemics and lockdowns are specifically mentioned.

• Request Documentation

Demand formal proof from your builder showing MahaRERA extension approvals and specific reasons for delay.

• Send a Legal Notice

If delays extend beyond the allowed period, issue a legal notice demanding possession or compensation.

• File Complaint with MahaRERA

File a case under Section 31 of RERA for delay in possession and misuse of force majeure clauses Maharashtra.

• Approach Consumer Forum or Civil Court

If required, seek compensation or refund via consumer forums or civil courts.

6. Legal Remedies Available to Buyers

• Claim Interest for Delay: Under Section 18 of RERA, buyers can claim monthly interest if possession is delayed beyond the valid force majeure period.
• Seek Refund with Compensation: If delay continues indefinitely, buyers can opt for full refund with interest.
• Demand Penalty on Builder: MahaRERA can impose penalties for misuse of force majeure clauses Maharashtra or non-compliance with orders.
• Challenge Clauses in Court: If misused, courts may declare certain force majeure clauses Maharashtra invalid or inapplicable.

Key Legal Advice and What to Avoid

• Do not accept verbal assurances. Always demand written confirmation about project delays.
• Avoid stopping payments unilaterally without legal consultation. You may risk breaching your own agreement.
• Never assume your builder’s force majeure claim is automatically valid.
• Keep all communication records and monitor project status regularly.

Legal Documentation Tips

• Agreement for Sale copy
• All payment receipts
• MahaRERA registration details
• Builder’s extension approval letters from MahaRERA
• Email or written communication with builder

Timelines for Legal Action

• File MahaRERA complaint ideally within 1 year from the cause of action.
• RERA aims to resolve complaints in 60–90 days.
• Consumer forum complaints must generally be filed within 2 years.

Conclusion: Your Rights Are Protected

The pandemic may have been an unprecedented event, but force majeure clauses Maharashtra do not give builders unlimited protection. Buyers in Maharashtra have clear rights under RERA. If your builder is misusing force majeure to justify indefinite delays, legal remedies are available.

Stay alert, maintain communication, document all evidence, and consult a legal expert to assert your rights effectively.

Disclaimer

This article is provided for general informational purposes only and does not constitute legal advice, legal opinion, or a substitute for professional consultation. Although every effort has been made to ensure the accuracy and relevance of the information presented, laws and regulations may change over time, and the applicability of legal principles can vary based on individual circumstances. Tigde Law Firm does not accept any responsibility or liability for any actions taken based on the content of this article. Readers should consult a qualified legal professional for advice that is specific to their legal matter before making any decisions or taking any steps based on the information provided herein. Use of this article does not create any attorney-client relationship.

About Tigde Law Firm

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Founded by Sachin Subhash Tigde and Shubhash Tigde, both experienced High Court lawyers in Maharashtra with a legacy of over 45 years and second-generation expertise, the firm has handled more than 5,000 cases. With 50+ in-house advocates across Mumbai, Navi Mumbai, and Thane, Tigde Law Firm is widely regarded as the best law firm in Thane and home to some of the most reliable advocates and lawyers in Thane. Specialising in property and redevelopment matters, RERA compliance, society disputes, divorce, NCLT, civil, criminal, corporate, and IP law, TLF delivers clarity and confidence to clients facing complex legal challenges.

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