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The Odisha High Court has extended its stay on the state government's February 1, 2025, notification that sought to exempt apartments completed before February 25, 2017, from certain provisions of the Odisha Apartment (Ownership and Management) Act, 2023. The move, challenged by a homebuyer, was seen as favoring builders who sold incomplete flats without occupancy certificates. The case highlights broader issues in India's real estate sector, similar to past disputes in Kerala and Mumbai. The court's final decision, expected on March 26, 2025, will significantly impact apartment ownership rights and legal compliance in Odisha.
The Odisha High Court has extended its stay on the state government's notification dated February 1, 2025, which aimed to address ambiguities in the Odisha Apartment (Ownership and Management) Act, 2023. This decision came in response to a petition filed by Bimalendu Pradhan, a resident of Bhubaneswar, challenging the notification's validity. Advertisement
The February 1 notification sought to exempt apartments completed before February 25, 2017, from certain provisions of the 2023 Act. This exemption was intended to facilitate the registration and transfer of such apartments, as many lacked occupancy certificates or had not formed associations of allottees, leading to difficulties for owners in registering their properties.
However, the petitioner argued that this exemption favored builders who had sold incomplete flats without obtaining the necessary occupancy certificates or forming associations of allottees, thereby compromising the rights and interests of genuine homebuyers. The High Court, acknowledging these concerns, initially imposed an interim stay on the notification on February 12, 2025, and has now extended this stay until March 26, 2025, pending further responses from the state government and the Inspector General of Registration.
This situation in Odisha mirrors challenges faced in other parts of India concerning apartment ownership and management laws. For instance, in Kerala, the Maradu apartment demolition case highlighted the consequences of unauthorized constructions. In 2019, the Supreme Court ordered the demolition of several high-rise buildings in Maradu municipality, Kochi, for violating Coastal Regulation Zone norms. These apartments were constructed without proper environmental clearances, leading to the eviction of numerous residents and a significant public outcry.
Similarly, in Mumbai, the Campa Cola compound case underscored issues arising from unauthorized constructions and the lack of adherence to building regulations. In 2014, the Supreme Court ordered the demolition of illegal floors in the Campa Cola housing society, affecting over 230 families. The buildings had exceeded the permitted construction limits, and despite prolonged legal battles, the residents faced eviction due to the violations.
These cases emphasize the critical importance of strict compliance with building regulations and the necessity for clear, enforceable laws governing apartment ownership and management. They also highlight the judiciary's role in upholding legal and environmental standards, ensuring that deviations are addressed to protect the rights of residents and maintain the integrity of urban development.
As the Odisha High Court continues to deliberate on the state's notification, the outcome will be closely watched by stakeholders, including apartment owners, builders, and legal experts. The decision will have significant implications for the enforcement of the Odisha Apartment (Ownership and Management) Act, 2023, and could set a precedent for how ambiguities in such legislation are addressed in the future.
In the interim, apartment owners, especially those with properties completed before February 25, 2017, remain in a state of uncertainty regarding the registration and legal status of their apartments. The resolution of this issue is crucial for ensuring the protection of homeowners' rights and the smooth functioning of property transactions in the state.
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