This follows an advisory issued by the Union Ministry of Housing and Urban Affairs (MoHUA) on Friday, July 31, asking all State regulatory authorities to extend project deadlines by four months for projects whose completion deadlines fall on or after February 28, this year.
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The wait got longer for home buyers as the Real Estate Regulatory Authority Karnataka (K-RERA) is set to extend timelines for RERA-registered projects by four months, owing to disruptions in the supply of construction materials caused by the ongoing West Asia war.
This follows an advisory issued by the Union Ministry of Housing and Urban Affairs (MoHUA) on Friday, asking all State regulatory authorities to extend project deadlines by four months for projects whose completion deadlines fall on or after February 28, this year.
The Confederation of Real Estate Developers’ Association of India (CREDAI) had petitioned RERA and MoHUA seeking a six-month extension for all project deadlines, citing supply chain disruptions. From March through June, the availability of construction materials such as steel, cement, vitrified tiles, and sanitary ware was severely affected due to disruptions in the supply of natural gas required for their production.
The advisory said that the Department of Expenditur, Ministry of Finance, on April 29, “had declared the ongoing West Asia situation as ‘war’ for the purpose of invoking the force majeure clause” and that “Section 6 of the Real Estate (Regulation and Development) Act, 2016, provides for extension of registration of a real estate project on account of force majeure, which inter alia includes war.”
A senior official of K-RERA said the authority would act accordingly.
M. S. Shankar, Convenor, Karnataka chapter of the Forum for People’s Collective Efforts (FPCE), said the builders’ request for an extension was genuine and one that home buyers would understand. “But we should ensure that the extension is limited to four months and that no further extension is given,” he said.
Supply disruptions
Bhaskar T. Nagendrappa, president, CREDAI – Karnataka, welcoming the extension of the deadline, stated that while this gave them some relief from becoming defaulters, supply chain disruptions and cost escalation of construction materials continue to persist in the market.
“The supply of steel and cement has resumed to normal levels, but there is a huge cost escalation that we are saddled with. However, the supply of vitrified tiles and sanitary ware is still severely disrupted. Thousands of units in Morbi, Gujarat, a major producer of tiles, have shut shop,” he said.
Amar Mysore, chairman, CREDAI-Bengaluru, said the units manufacturing construction materials are now slowly returning to full capacity and that it will take time. “Manufacturing cannot be a switch-off and switch-on process. These units need time to get back to operating at full scale. Apart from vitrified tiles and sanitary ware, the supply of electric conductors such as copper and aluminium is also severely stressed,” he said.
Mr. Nagendrappa said that overall the cost of construction materials had gone up by about 25%, and since the contractors were on fixed-price contracts, they had to absorb this escalation themselves, leaving many projects severely stressed.
Published – July 31, 2026 08:17 pm IST
