Realtor Fined Rs 2 Crore for Unauthorized Plot Sales in Bhubaneswar

Bhubaneswar: The Odisha Real Estate Regulatory Authority (ORERA) has imposed a Rs 2 crore fine on a local realtor for selling plots without the mandatory layout approvals or registrations. The project, Infogreen City Overview, spans 120 acres and includes 2,500 plots located at Haridamada, on the outskirts of Bhubaneswar.

The project was heavily promoted through social media to attract potential buyers. However, an investigation by ORERA revealed that the promoter began selling plots in November 2024, despite the lack of necessary approvals from the Bhubaneswar Development Authority and the absence of registration with ORERA. This violated Sections 3 and 17 of the Odisha Real Estate (Regulation and Development) Act, 2016.

By the time the investigation was conducted, 30% of the total plots, valued at Rs 550 crore, had already been sold. Additionally, road construction was underway, further highlighting the unauthorized nature of the project. The promoter's failure to contest the findings made him liable for a penalty of up to 10% of the project’s cost as per the Act.

The ORERA’s order stated, “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.”

This stringent action by ORERA underscores the importance of compliance with real estate regulations in Odisha. It serves as a warning to other developers and promoters to adhere to the necessary legal procedures to avoid hefty penalties and legal repercussions.