Odisha Real Estate Tribunal Upholds Homebuyers' Rights in Landmark Decision
In a significant ruling, the Odisha Real Estate Appellate Tribunal (OREAT) has dismissed an appeal by a local promoter, reinforcing the rights of homebuyers and declaring the cancellation of a flat allotment as arbitrary and illegal.
Real EstateHomebuyersOdishaRera ActTribunalReal Estate NewsNov 05, 2025
The case revolved around a flat in a multi-storey residential project in Brahmeswarpatna. The buyer, who had paid over Rs 60 lakh out of the total Rs 70.68 lakh, was denied possession after the promoter unilaterally cancelled the allotment, citing delayed payments. However, the tribunal found that the buyer complied with the payment schedule as per the registered agreement for sale dated July 28, 2018, which clearly stated that the remaining amount of Rs 7.39 lakh was to be paid at the time of execution of the sale deed.
OREAT found that the promoter’s demand for the balance amount prior to executing the conveyance deed was a violation of both the agreement and Section 17(1) of the Real Estate (Regulation and Development) Act, 2016, which mandates that possession can only be handed over after registration of the sale deed.
The allottee also raised concerns over the safety of the apartment, citing the absence of grilles on the windows and balcony, which posed a risk to his autistic daughter. The tribunal acknowledged the buyer’s concerns and criticised the promoter for failing to address them.
Despite the Odisha Real Estate Regulatory Authority’s (ORERA) earlier order directing the promoter to accept the balance payment and hand over possession, the promoter returned the entire amount paid by the buyer, further aggravating the dispute. In its final order, the tribunal directed the promoter to accept the agreed balance amount with 5% GST, execute the conveyance deed with the allottee, and immediately hand over possession of the flat.
The appeal was dismissed on merit against the allottee and ORERA, and ex parte against the sub-registrar, Khurda. “It’s not only ORERA but also OREAT that is present to safeguard the interest of homebuyers,” real estate expert Bimalendu Pradhan said. He said the ruling is expected to set a precedent for similar disputes. He emphasised that promoters must adhere strictly to contractual and statutory obligations, and that homebuyers cannot be penalised for asserting their rights under the RERA Act.
Frequently Asked Questions
What was the main issue in the Odisha Real Estate Appellate Tribunal (OREAT) ruling?
The main issue was the cancellation of a flat allotment by a city-based promoter, who claimed the buyer had delayed payments. The tribunal found the cancellation to be arbitrary and illegal.
What did the buyer pay for the flat?
The buyer paid over Rs 60 lakh out of the total Rs 70.68 lakh for the flat, with the remaining Rs 7.39 lakh to be paid at the time of executing the sale deed.
What did the tribunal find regarding the promoter's demand for the balance amount?
The tribunal found that the promoter’s demand for the balance amount prior to executing the conveyance deed was a violation of both the agreement and Section 17(1) of the RERA Act.
What safety concerns did the buyer raise?
The buyer raised concerns over the safety of the apartment, specifically the absence of grilles on the windows and balcony, which posed a risk to his autistic daughter.
What was the final order of the tribunal?
The tribunal directed the promoter to accept the agreed balance amount with 5% GST, execute the conveyance deed with the allottee, and immediately hand over possession of the flat.
Related News Articles
Equinox India Developments Limited: The New Face of Indiabulls Real Estate
Listed real estate developer Indiabulls Real Estate Limited has undergone a transformation, changing its name to Equinox India Developments Limited with effect from June 20, 2024.
Max Estates Aims to Raise ₹800 Crore via QIP to Fuel Business Growth
Max Estates plans to raise ₹800 crore through Qualified Institutional Placement (QIP) to fund its business growth and land acquisition in Delhi-NCR.
Mumbai's Elderly Drive Property Registrations with 200% Hike Post-Covid
Property registrations from senior citizens in Mumbai expected to surpass 23,000 in 2024, with a significant increase in market share.
India's Private Credit Market Set to Boom, Reaching USD 10 Billion in 2024
Private credit deployments in India are expected to exceed USD 10 billion in 2024, driven by growth-oriented strategies and increased participation from domestic funds and high-net-worth investors.
Arpita Khan Sharma Sells Mumbai Apartment for ₹22 Crore
Salman Khan's sister, Arpita Khan Sharma, has recently sold her apartment in Mumbai's Khar area for a whopping ₹22 crore. The property, located in the Flying Carpet building developed by Satguru Developers, spans an impressive 2500 square feet.
Housing.com Launches 'Happy New Homes 2025' - The 8th Edition of India's Leading Online Property Event
Housing.com, the leading real estate app in India, is set to launch the 8th edition of its flagship online property event, Happy New Homes 2025 (HNH'25). This highly anticipated event will kick off soon, offering a plethora of new homes and exciting deals