Force Majeure

On February 19, 2020, the Ministry of Finance ruled that “disruption of supply chains due to spread of Coronavirus will be covered” under the force majeure clause of government contracts. On May 13 it went further. For contractors not already in default, dates for obligations falling due from February 20 “shall stand extended for a period not less than three months and not more than six months,” without “any cost or penalty on the contractor/concessionaire.”

The same day, the Ministry of Housing and Urban Affairs asked the states to “treat the pandemic COVID-19 as ‘force majeure'” under the real estate law and to “automatically extend registration of all real estate projects registered under RERA by 6 months.”

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