Often called the “Act of God”, developers across India are now misusing force majeure more like an act of convenience to delay projects, thus leaving homebuyers in the lurch.
On paper, Section 6 of the Real Estate (Regulation and Development) Act, 2016, gives builders a legitimate shield: if a flood, cyclone, war, pandemic, or government ban halts construction, they can seek up to a one-year extension without paying penalties.
But there have been cases, where developers are invoking force majeure more like a legal smokescreen to default on project timelines. More often than not, these supposed calamities projected by them are because of poor management decisions rather than actual natural disasters.
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What Are the Criteria for Force Majeure
Valid force majeure events under the real estate regulatory authority Rera Act, 2016 includes the following.
Natural disasters: floods, earthquakes, cyclones, landslides
Environmental restrictions: pollution-related construction bans, National Green Tribunal (NGT) orders
Government interventions: new policies, acquisition delays, court-ordered halts
Health emergencies: epidemics, pandemics (e.g., Covid-19 lockdown)
Vishal Kumar Singh, co-founding partner, Verdienta Law, says, “The interpretation of force majeure in Indian real estate, especially under Rera, has evolved significantly since Covid-19. In the initial phase of the pandemic, both regulatory bodies and courts accepted Covid-19 as a valid force majeure event. Builders were granted extensions, usually up to six months, on their project timelines.”
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But routine cost overruns, steel shortages, poor planning, labourer strikes, none of these qualify unless directly caused by one of the above. And yet, developers keep invoking them.
How To Identify Force Majeure Misuse
Not every delay is a disaster. And under Rera, builders must prove it.
Before accepting a force majeure excuse, buyers should:
Demand written evidence of government notifications or municipal orders rather than rely on just claims. Was there a flood warning? A court-ordered ban and son on, and ask the builder to show it.
Check the contract. Was force majeure defined clearly? Many agreements use vague, unqualified clauses that give builders too much leeway.
Review State RERA filings. Delay extensions and reasons must be listed publicly. If the builder has quietly added months without your knowledge, you have grounds to challenge it.
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Buyers’ Legal Rights if Force Majeure is misused
If the builder cites force majeure, but fails to offer legitimate proof, a formal complaint can be filed with the relevant state Rera. And the law stands on the buyer’s side.
According to Section 18 of Real Estate (Regulation and Development) Act, 2016, if the builder delays possession beyond the approved extension, force majeure or not, the buyer can:
Withdraw from the project and claim a full refund with interest
Stay in the agreement and demand interest for every month of delay
And in extreme cases, such as permanently stalled projects, buyers may seek legal recourse under the Indian Contract Act, 1872 specifically, Section 56, which deals with the doctrine of frustration. If a project is proven non-viable, the agreement itself can be terminated.
Singh adds, “Builders are now expected to provide specific proof of whether it’s a government order halting construction, a shortage of labour, or disruption in material supply. If they can’t demonstrate that, the force majeure defence usually fails.”
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Why Builder-Buyer Agreement Matters
It’s not just the law, it's the paperwork that makes or breaks your case.
Before signing on any dotted line, buyers must:
Ensure that force majeure is clearly defined and not a catch-all
Confirm the extension period aligns with Rera's cap of one year
Look for clauses that safeguard buyer rights revised timelines, compensation, or exit options if delays persist
Reject agreements that lean on ambiguous language or wide interpretations of unforeseeable events
Singh adds, “The burden of proof is firmly on the builder. They must establish that the delay was not only unforeseeable, but also unpreventable and that all possible mitigation steps were taken. This shift reflects a growing emphasis on accountability and transparency in the real estate sector. It’s a positive development for homebuyers, who now have clearer rights and stronger protections when facing unjustified delays.”
Too often, buyers only realise the loopholes after the damage is done. Rera was enacted to protect the buyer. But it can only work if buyers remain informed, proactive, and legally aware. Force majeure is not a loophole; it is a shield, and it cannot be used to hide behind chronic inefficiency or financial mismanagement. Every buyer has the right to ask questions, demand proof, and seek remedy.
