Odisha RERA Orders Builder to Halt Sales in Phulnakhara Project for Violating Regulations

The Odisha Real Estate Regulatory Authority (ORERA) has taken action against a builder for failing to comply with the terms of its registration. The builder has been directed to stop accepting bookings for a housing and commercial project in Phulnakhara, located near the city. This decision comes after ORERA found that the builder had made changes to the project without proper approvals and delayed handing over units to buyers.

Background

The builder had registered the project with ORERA in 2019, with revisions made in 2021. Initially, the project was planned to include 1,626 residential units and 571 commercial units. However, in 2024, the builder made significant changes, increasing the number of residential units to 3,157 and commercial units to 796. Despite these changes, the project faced delays, and no units were handed over to buyers.

ORERA found that the builder had failed to obtain approvals from two-thirds of the allottees before altering the project plan. This violated provisions under the Real Estate (Regulation and Development) Act, which requires developers to seek the consent of buyers for major changes. The builder was also found to have misrepresented information to buyers and the regulatory authority, creating further complications.

ORERA’s Orders

To address the issues, ORERA has issued a set of directives for the builder:

• No Further Bookings or Payments: The builder has been ordered to stop taking payments from buyers or accepting new bookings for the project.
• Occupancy Certificates: The builder must obtain occupancy certificates for completed units from the relevant authorities.
• Formation of Allottees’ Association: ORERA has directed the builder to establish and register an allottees’ association as required under the Odisha Apartment (Ownership and Management) Act, 2023.
• Transfer of Common Areas: The builder is required to transfer common areas to the allottees’ association.
• Completion of Sale Deeds: The builder must complete the registration of all sold units, ensuring legal ownership is transferred to the buyers.

ORERA has warned that if the builder does not comply with these directives within the given timeline, its registration may be revoked.

While the builder’s actions have caused delays and concerns among buyers, ORERA has chosen not to revoke the registration immediately. The authority noted that such a step could create additional difficulties for the buyers who have already invested in the project. Instead, ORERA has emphasized compliance with its orders to ensure that buyers are not left in uncertainty.

This decision aims to balance the enforcement of regulations with the protection of homebuyers’ interests. ORERA has stressed that the builder’s compliance with these directives is necessary to prevent further legal and financial complications.

Image source-rera.odisha.gov.in