Odisha Real Estate Tribunal Upholds Buyer's Rights Against Delayed Possession and Lack of Amenities

The Odisha Real Estate Appellate Tribunal (OREAT) has dismissed an appeal by a city-based realtor challenging the applicability of the RERA Act, 2016 to one of its residential projects in Andharua. The tribunal upheld the Odisha Real Estate Regulatory Authority’s (ORERA) earlier order, directing the developer to compensate the buyer and comply with key statutory obligations.

The case was filed by homebuyer Surya Prakash, who alleged delayed possession, absence of occupancy and fire safety certificates, and failure to deliver amenities promised in the sale agreement. Despite paying Rs 47.84 lakh, the buyer received possession nearly 20 months late, in August 2021, without the required certifications.

During the hearing, the developer argued that the project was completed before RERA came into force on May 1, 2017. The developer also cited that completion certificates were issued to the project twice, in March and April 2017. However, OREAT found those certificates invalid, noting they were not issued by a competent authority and lacked compliance with the BDA’s regulations. The tribunal also cited the BDA’s rejection of the occupancy certificate application due to construction deviations and missing documentation.

The tribunal issued an order in favor of the buyer and directed the developer to pay interest at 10.2% per annum on Rs 47.84 lakh from December 7, 2019, to August 3, 2021. It also asked the builder to legally obtain and hand over a valid occupancy certificate from the competent authority.

Regarding amenities and maintenance, the tribunal stated that all promised amenities must be provided to buyers as per the sale agreement. It also asked the builder to facilitate the formation of an association of allottees and hand over common areas as per Section 17 of RERA. The tribunal emphasized that failure to comply with the order within two months could lead to further legal action by the complainant.

“The developer has crossed all limits of spreading lies. It has also defied the ORERA order and made an appeal in OREAT. However, the developer’s lies have been exposed,” Prakash said.