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The Odisha Real Estate Regulatory Authority (ORERA) has cancelled the registration of a Bhubaneswar housing project for using a railway road as its access route without permission. With less than 10% work completed and no homebuyers involved, ORERA cited Section 7(2) to revoke the project without affecting any buyers. The authority also froze the project's bank account and barred the promoter from using its platform to prevent misleading marketing. This marks the second such action by ORERA, highlighting the need for developers and planning bodies to verify land use approvals and access rights before launching real estate ventures.
The Odisha Real Estate Regulatory Authority (ORERA) has recently revoked the registration of a housing project in Bhubaneswar due to the project's reliance on an approach road constructed on railway land without proper authorization. This action marks the second instance in the state where ORERA has taken such a measure to uphold regulatory compliance and protect homebuyers' interests. Advertisement
The project in question had utilized a railway road as its primary access point, a fact that came to light during the approval process. Despite receiving RERA approval, the project had made minimal progress, with less than 10% of the work completed and no bookings by homebuyers. ORERA, citing Section 7(2) of the ORERA Act, determined that revoking the registration would not adversely affect any homebuyers, as none had invested in the project at that stage.
In addition to revoking the registration, ORERA has taken further steps to prevent the promoter from proceeding with the project. The authority has frozen the project's bank account and barred the promoter from accessing the ORERA website to showcase or market the units. These measures aim to ensure that the promoter does not attract potential buyers under false pretenses.
This incident underscores the importance of due diligence by both developers and regulatory bodies. Real estate experts have raised concerns about the role of planning authorities in approving building plans that involve unauthorized land use. They emphasize the need for thorough verification of land ownership and usage rights before granting approvals to prevent such issues from arising.
For prospective homebuyers, this serves as a cautionary tale about the importance of verifying all aspects of a property's legality, including access roads and land ownership, before making any investments. Ensuring that a project complies with all regulatory requirements can help avoid potential legal complications and financial losses.
As ORERA continues to enforce compliance and protect homebuyers' interests, developers are reminded of their responsibility to adhere strictly to legal and regulatory standards in all aspects of project planning and execution.
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