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The Odisha Real Estate Regulatory Authority (ORERA) has ordered a builder to halt further bookings for a mega housing-cum-commercial project in Phulnakhara, Bhubaneswar, due to repeated violations of its registration conditions. The authority also directed the builder to stop collecting additional funds, obtain occupancy certificates for completed units, and register the sale deeds for already-sold units. The builder, who initially received ORERA approval in 2019 and 2021 for 1,626 residential and 571 commercial units, revised the building plan in 2024, increasing the total units but failing to meet compliance requirements. ORERA stated that if the builder does not adhere to the given conditions, its registration will be revoked.
In a significant decision, the Odisha Real Estate Regulatory Authority (ORERA) has instructed a builder working on a major housing and commercial project in Phulnakhara, located on the outskirts of Bhubaneswar, to stop taking further bookings. This order comes after the builder repeatedly failed to meet the conditions outlined in its registration certificate. Advertisement
ORERA had registered the case on its own initiative and, after reviewing the situation, directed the builder to cease collecting more funds from buyers. The authority also instructed the builder to secure occupancy certificates for the units that had been completed, from the relevant authorities. In addition, the builder was asked to form an association for the allottees, as required by the Odisha Apartment (Ownership and Management) Act, 2023.
The regulator further ordered the promoter to promptly hand over the common areas to the association and complete the registration of sale deeds for the units already sold. ORERA made it clear that failure to comply with these instructions would result in the revocation of the builder's registration certificate.
The builder had initially received a registration certificate from ORERA in 2019 and again in 2021, with approval for the construction of 1,626 residential units and 571 commercial units. Based on this, the builder began work on the project. However, in 2024, the builder revised the building plan, increasing the number of residential units to 3,157 and commercial units to 796, and obtained a new registration certificate reflecting these changes.
ORERA found that when issuing this revised certificate, it became evident that the builder had failed to hand over the completed flats to the buyers, despite having entered into agreements for sale with them. Additionally, upon reviewing the quarterly progress reports submitted by the builder, it was revealed that although a substantial amount of money had been received from the buyers, not a single unit had been delivered.
The authority also discovered that the builder had not obtained the consent of at least two-thirds of the allottees when revising the building plan this year. A senior ORERA official stated that the builder had misled both the buyers and the authority repeatedly since 2019. The official also noted that the registration certificate had not yet been revoked, as doing so would not be in the best interest of the homebuyers who had already invested in the project. The builder has now been given a timeline and specific conditions to meet. If the builder fails to comply, ORERA has warned that the registration will be revoked.
This action by ORERA serves as a strong reminder to real estate developers about the importance of adhering to regulations and fulfilling commitments to buyers. The builder has been given an opportunity to rectify the situation, but should they fail to comply, it could severely impact both their reputation and the future of the project. For buyers, this situation highlights the risks of investing in projects where builders do not meet their obligations.
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