Odisha Real Estate Tribunal Upholds ORERA Order: Builder Must Obtain OC and Transfer Common Areas

The Odisha Real Estate Appellate Tribunal (OREAT) has dismissed an appeal filed by a city-based realtor and upheld an order from the Odisha Real Estate Regulatory Authority (ORERA). The order mandates the promoter to obtain completion and occupancy certificates (OC) for a 41-duplex project located in Janla.

OREAT also directed the promoter to facilitate the formation of an allottees' association and to hand over common areas and statutory documents to the purchasers within two months. The project, consisting of 41 duplex apartments, has been under scrutiny for alleged violations by the builder.

According to the case history, the Bhubaneswar Development Authority (BDA) approved the project in February 2010 as a group housing scheme. The approval came with conditions, including the submission of a completion certificate, application for OC prior to occupation, and registration of an apartment owners' association under the Odisha Apartment Ownership Act, 1982.

The tribunal found that the builder first sold subdivided plots and then executed construction agreements with individual buyers, which deviated from the BDA’s group housing approval. OREAT deemed such agreements illegal to the extent they override statutory approval conditions, emphasizing that the statutory scheme prevails over private arrangements.

The promoter was required to build strictly according to the approved plan and fulfill all stipulated conditions. OREAT noted that no completion certificate or OC had been issued, and the duplexes have been occupied since 2013. The tribunal ruled that the project has been ongoing from May 1, 2017, bringing it under the purview of the Real Estate (Regulation and Development) Act, 2016 (RERA).

A buyer, who is the complainant in the case, alleged that the builder attempted to take over common areas in the project. OREAT affirmed ORERA’s directions to the builder to obtain the completion certificate and OC from the competent authority, enable and facilitate the registration of the allottees’ association, hand over common areas and facilities with necessary documents, and maintain common services until formal handover.

OREAT clarified that the complainant, who purchased duplex no. 4 by transfer in December 2018, qualifies as an “allottee” under Section 2(d) of the RERA Act, making the complaint maintainable. The tribunal directed that a copy of the order be sent to BDA to inform it of the promoter’s “unscrupulous conduct” in developing the project in deviation from the approved layout and group housing building plan.

This ruling highlights the importance of adherence to regulatory guidelines and statutory requirements in the real estate sector, ensuring transparency and protection for homebuyers.