Odisha Real Estate Tribunal Upholds Homebuyer's Rights in Landmark Ruling

In a ruling that reinforces the rights of homebuyers, the Odisha Real Estate Appellate Tribunal (OREAT) has dismissed an appeal filed by a city-based promoter, upholding the allotment of a flat to a buyer and declaring its cancellation as arbitrary and illegal. The case revolved around a flat in a multi-storey residential project in Brahmeswarpatna, Bhubaneswar. The buyer, who 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 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.