Realtors can’t use force majeure clause for lack of approvals
Realty developers cannot use the force majeure clause for financial crisis and lack of approvals in any project, ruled the Maharashtra Real Estate Regulatory Authority in a recent order against Hindustan Construction Company’s subsidiary Lavasa Corporation.
In a matter related to a homebuyer Mudhit Gupta’s complaint against Lavasa seeking refund and compensation for failing to deliver his apartment, the company had taken a stand that it failed to complete the project owing to status-quo order on the construction by the Ministry of Environment and Forest (MoEF), and is now facing difficulties to meet the liabilities to complete the project due to swelling financial obligations. “The aforesaid stand as has been taken by the respondents cannot come within the scope of the alleged clause of “force majeure”.
“Force majeure” clause can be made applicable when the entire situation is beyond the control or vis majeure,” MahaRERA Pune’s adjudicating officer SB Bhale said as he rapped the company.