Odisha Government Enforces Strict New Rules for Real Estate Handovers
The Odisha government has introduced new regulations requiring real estate developers to obtain completion or occupancy certificates before handing over possession of buildings to buyers. This move, aligned with Supreme Court directives, aims to curb unauthorized constructions and ensure compliance with building standards.
Real EstateCompletion CertificateOccupancy CertificateOdishaConstructionReal EstateSep 08, 2025
A notification to this effect was issued by the Housing and Urban Development (H&UD) department, in line with the directives of the Supreme Court. The department has also notified that no permission for the conduct of trade or business will be granted in any building, whether residential or commercial, if it is unauthorized. Banks and financial institutions will also not sanction loans against any building that does not have the CC or OC.
“The directions will be strictly adhered to in line with the Odisha Development Authorities (ODA) Act-1982 and Odisha Town Planning and Improvement Trust Act-1956 and the rules made thereunder,” the department stated in its notification.
As per the notification, development authorities, while issuing building permissions to a builder or applicant, will collect an undertaking stating that the possession of the building will be handed over to the owner or beneficiary only after obtaining the completion or occupancy certificate from the authorities concerned. The builder/developer will also be required to display a copy of the approved plan during the entire period of construction, and the same will be inspected by the development authorities periodically to maintain an official record.
On the other hand, the construction must be carried out as per the approved plan. In the event of any deviation, action will be initiated as per the provisions of the law, and the issue of the OC will be deferred until the deviations are completely rectified.
Service connections such as electricity, water supply, and sewerage will be provided to a building only after it is accorded the CC or OC. Similarly, no permission or license for trade and business will be given by any authority to any building found to be unauthorized.
Apart from these provisions, the notification stated that banks and financial institutions will sanction loans against a building, as security, only after verifying that it has the completion certificate. Real estate expert Bimalendu Pradhan, who had moved the Supreme Court in this matter, said the order will be of significant help in putting a check on unauthorized constructions in the state’s real estate sector.
Pradhan said that as per the norms, both builders and department officials could face action if any deviation is found in building construction after the occupancy certificate is granted. This move is expected to bring more transparency and accountability to the real estate sector in Odisha, ensuring that buyers receive safe and compliant properties.
Frequently Asked Questions
What is a completion certificate (CC) and an occupancy certificate (OC)?
A completion certificate (CC) is a document issued by the concerned authority, confirming that the construction of a building has been completed as per the approved plans and specifications. An occupancy certificate (OC) is issued after the CC, confirming that the building is safe and fit for occupancy.
Why is the Odisha government enforcing these new rules?
The new rules are being enforced to ensure that all buildings are constructed according to approved plans and are safe for occupancy. This helps to curb unauthorized constructions and maintain building standards, protecting the interests of buyers and the public.
What happens if a builder fails to obtain a CC or OC before handing over possession?
If a builder fails to obtain a CC or OC before handing over possession, they can face legal action and penalties. Additionally, the building will not be allowed to have service connections like electricity, water, and sewerage, and no permission for trade or business will be granted.
How will these rules affect the real estate market in Odisha?
These rules are expected to bring more transparency and accountability to the real estate market in Odisha. They will ensure that all constructions are compliant with regulations, which can increase buyer confidence and reduce the risk of unauthorized constructions.
What is the role of banks and financial institutions in this new regulation?
Banks and financial institutions are required to verify that a building has a completion certificate before sanctioning any loans against it. This ensures that the property is legally and structurally sound, protecting both the lender and the borrower.
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