ORERA Imposes Rs 2 Crore Fine on Bhubaneswar Realtor for Illegal Plotting
The Odisha Real Estate Regulatory Authority (ORERA) has slapped a Rs 2 crore penalty on a Bhubaneswar-based realtor for launching an unauthorized plotting project without the necessary approvals and registrations.
Real EstateOreraBhubaneswarPenaltyIllegal PlottingReal Estate NewsJul 27, 2025
According to ORERA’s recent order, the realtor violated Sections 3 and 17 of the Odisha Real Estate (Regulation and Development) Act, 2016, by launching the project and selling plots without prior approval from the Bhubaneswar Development Authority and without registering the scheme with ORERA. The unauthorized sale of plots began in November 2024, with the promoter using social media platforms to attract potential buyers.
ORERA’s technical team conducted a site inspection and submitted its findings to the three-member bench, confirming that over 30% of the plots had already been sold without proper documentation or sanctioned layout plans. The authority has directed the promoter to deposit the Rs 2 crore penalty within two months and register the project under the RERA Act. Failing to comply within the stipulated time will invite further legal action.
“The respondent is directed to deposit a sum of Rs 2,00,00,000 as penalty within two months, failing which the same shall be realized as per law. The respondent-promoter is hereby directed to register the project under the RERA Act within two months from the date of receipt of this order, failing which further legal action will be initiated against him as per law,” the order read.
Commenting on the development, Bimalendu Pradhan, a real estate expert, said, “This case exposes glaring systemic failures. Over 200 registrations were done without layout approval or ORERA registration. Buyers must check the documents and other legal aspects before investing in such plots.”
Frequently Asked Questions
What is ORERA?
ORERA stands for the Odisha Real Estate Regulatory Authority. It is a regulatory body established under the Real Estate (Regulation and Development) Act, 2016, to regulate and promote a transparent, efficient, and fair real estate market in Odisha.
Why was the fine imposed?
The fine was imposed because the realtor launched and sold plots in a project without obtaining the necessary layout approvals from the Bhubaneswar Development Authority and without registering the project with ORERA, as required by the Odisha Real Estate (Regulation and Development) Act, 2016.
What is the total valuation of the project?
The total valuation of the project is Rs 550 crore, involving 2,500 plots spread over 120 acres.
What are the consequences if the realtor fails to comply?
If the realtor fails to deposit the Rs 2 crore penalty and register the project under the RERA Act within the stipulated two months, further legal action will be initiated against them as per the law.
What advice do experts have for potential buyers?
Real estate experts advise potential buyers to thoroughly check all documents and legal aspects before investing in plots or properties to avoid falling prey to unauthorized and illegal projects.
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