CREDAI West Bengal Backs Real Estate Reforms, Seeks Eight-Month Relief for Projects

CREDAI West Bengal has expressed support for the state government's efforts to strengthen building safety and regulatory compliance, while asking for additional time for real estate projects affected by the ongoing mandatory audit and other disruptions.

The developers' association has requested an eight-month force majeure period covering project approvals and completion validity. According to CREDAI West Bengal, the extension would help compensate for time lost because of several developments, including the mandatory audit, a stop-work period, elections, the Special Intensive Revision (SIR) exercise and disruptions linked to the war.

The request comes as authorities continue examining construction projects across the state following the collapse of a warehouse in Kolkata's Taratala area in June. The incident triggered a broader compliance review, with construction activity temporarily halted on projects included in the mandatory audit.

Audit covers hundreds of projects

The latest figures shared by CREDAI indicate that 706 projects were identified for the audit. Of these, 595 projects have submitted applications, while 115 had yet to apply at the time of the latest update.

Scrutiny has been completed for 585 projects. Among the projects reviewed, 204 have received clearance, while another 89 have been granted conditional permission to continue. Authorities have also identified 26 projects involving major violations.

The audit process has involved a technical committee that has conducted eight meetings to assess compliance and review the status of projects.

CREDAI West Bengal president Sushil Mohta said the association supports the proposed Standard Operating Procedure (SOP) for building safety and regulatory compliance. The organisation believes that a clearly defined procedure could make it easier for developers and authorities to deal with compliance-related issues.

Request for additional project validity

One of CREDAI's key requests is an eight-month extension for project approvals and completion timelines. The association argues that projects affected by the suspension of construction and the compliance review should not lose valuable project time because of circumstances beyond the developers' control.

CREDAI has also proposed allowing time-bound undertakings for projects where deviations are considered minor. Such an approach could allow eligible projects to resume construction while developers are given a specified period to complete the necessary corrective measures.

The proposal could provide a distinction between projects facing relatively limited compliance issues and those involving serious violations. Projects with major irregularities would continue to remain subject to scrutiny and regulatory action.

Stronger action against unauthorised construction

The developers' body has also backed strict action against illegal and unauthorised construction. CREDAI said the 27 illegal projects recently identified through the government's special audit did not involve its members.

The association stated that its membership standards require builders to meet compliance conditions. It believes stronger enforcement can help create a clearer distinction between developers following regulations and those operating outside the approved framework.

For the wider property market, stricter enforcement could also influence buyer confidence. Greater transparency around approvals, registrations and construction compliance may help prospective homebuyers make more informed decisions before purchasing property.

Homebuyers urged to verify RERA registration

CREDAI has reiterated that compliance with the Real Estate (Regulation and Development) Act, or RERA, remains essential. The association has advised buyers to check whether a project is properly registered and to examine the credentials of the developer before committing to a property.

For buyers in West Bengal, the ongoing audit highlights the importance of checking more than just location and pricing. Project approvals, regulatory registration and the developer's compliance record can also be important considerations when evaluating a property.

Real estate sector remains economically significant

CREDAI estimates that West Bengal's real estate sector attracts more than Rs 20,000 crore in annual investment and contributes approximately Rs 7,500 crore to the state exchequer. The association also estimates that the industry supports the livelihoods of around 60 lakh people.

The sector's performance therefore has implications beyond individual housing projects. A prolonged suspension of construction can affect developers, contractors, workers, suppliers and other businesses connected with the construction ecosystem.

CREDAI Kolkata president Apurva Salarpuria said enabling compliant projects to restart could support construction activity and the broader supply chain. The association believes that a structured regulatory process could help restore activity while maintaining safety standards.

Government and industry discuss next steps

The issues were discussed at a government-convened conference in Kolkata, where a CREDAI delegation met senior government representatives and officials. Discussions focused on regulatory challenges facing developers, building compliance and measures that could help affected projects resume work.

The proposed SOP is likely to play an important role in determining how projects with minor compliance issues are handled. At the same time, projects with major violations are expected to remain under closer regulatory scrutiny.

For the real estate industry, the immediate focus will be on completing the remaining audits, establishing clear compliance procedures and determining whether additional time will be granted for affected projects. For homebuyers, the developments underline the importance of checking RERA registration, approvals and developer credentials before making a property investment.