Odisha RERA Halts Builder from Booking Flats Over Norms Violation
The Odisha Real Estate Regulatory Authority (ORERA) has intervened in a housing project at Phulnakhara, Bhubaneswar, halting further bookings by the builder for failing to comply with regulatory norms. The project, which spans a large area and includes both residential and commercial units, has come under scrutiny for multiple violations since its inception.
The builder in question, who had registered the project with ORERA in 2019 and again in 2021, was expected to construct 1,626 residential units and 571 commercial units. However, in 2024, a revised building plan was submitted, increasing the number of residential units to 3,157 and commercial units to 796. This alteration, however, did not follow the proper procedure, and ORERA found that the builder failed to secure consent from two-thirds of the allottees before making the changes. Despite receiving substantial payments from homebuyers, the builder has not delivered a single flat to the buyers, leading to significant concerns. Upon reviewing the builder’s progress reports, ORERA found that, although considerable funds had been collected from buyers, no residential units had been handed over, violating the terms of sale agreements. Moreover, the builder had failed to provide an occupancy certificate for the completed units, an essential document required for possession.
In its order, ORERA directed the builder to immediately cease all further bookings and halt any collection of money from prospective buyers. The authority also stressed the importance of obtaining the necessary occupancy certificates for the units that had been completed, urging the builder to ensure that the sale deeds for units already sold are registered promptly. The builder was further instructed to transfer the common areas to the residents’ association and to complete the registration of the association as stipulated under the Odisha Apartment (Ownership and Management) Act, 2023.
The order by ORERA also warned the builder that failure to comply with these directives could lead to the revocation of the builder’s registration certificate. Although ORERA refrained from immediately cancelling the registration, citing concerns over protecting the interests of current homebuyers, it made it clear that strict action would follow if the builder did not meet the given conditions within the specified timeline. The decision to halt further bookings was made following ORERA’s review of the builder’s repeated mismanagement of the project and misleading actions since 2019. According to a senior ORERA official, the builder’s non-compliance with agreed terms has led to significant frustration and anxiety among homebuyers, with many awaiting possession of their homes for years.
While this intervention has provided some relief to affected buyers, the situation highlights the ongoing struggles within the Odisha real estate sector, where several builders continue to flout regulations. For now, ORERA has issued a clear message to builders that non-compliance with regulatory norms will not be tolerated, and actions will be taken to ensure that consumer interests are safeguarded. As the situation unfolds, it is hoped that this landmark decision by ORERA will act as a precedent, encouraging builders to be more transparent and responsible in their dealings with buyers. Meanwhile, prospective homebuyers remain hopeful that their investments will be protected, and they will soon receive the homes they were promised.
