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A Bhubaneswar developer faces action for ignoring an Odisha Real Estate Regulatory Authority (ORERA) order to compensate 18 homebuyers INR 87.94 lakh for delayed property delivery in Ghatikia. After losing an appeal in the Odisha Real Estate Appellate Tribunal (OREAT), the developer was issued a show-cause notice by the ADM, warning of arrest if compliance isn't met by December 31. This case highlights poor enforcement of ORERA rulings, with less than 2% implemented despite Supreme Court guidelines. Separately, ORERA flagged 57 promoters with unpaid penalties totaling INR 6.89 crore, underscoring non-compliance issues in Odisha's real estate sector.
A Bhubaneswar-based real-estate developer was asked by the Additional District Magistrate (ADM) to explain their reasons for failing to comply with an order from the Odisha Real Estate Regulatory Authority (ORERA). The order required the developers to compensate homebuyers who had faced challenges in an earlier 2019 case. The developer allegedly constructed a multi-storied property in the emerging locality of Ghatikia but failed to deliver the units to homebuyers within the promised timeline. As a result, 18 customers reported the issue to ORERA, which directed the developer to deliver a compensation of INR 87.94 lakh. Advertisement
In response, the developer challenged ORERA's order by appealing to the Odisha Real Estate Appellate Tribunal (OREAT). However, the tribunal rejected the appeal and ruled in favor of the homebuyers once again. Recently, the ADM issued a show-cause notice to the developer, asking them to explain why they should not face an arrest warrant for repeatedly failing to follow the ORERA order. The notice warned that if they fail to comply, the authorities plan to enforce the order by arresting and imprisoning them.
The notice also allowed the developer time till December 31st, on the day of which they will have to appear before a court and justify their actions to avoid imprisonment. Earlier this year, the Supreme Court of India ordered that the builder's movable and immovable assets be seized. This happened after a homebuyer went to the court because of delays in receiving the house they had invested in.
One of the homebuyers, Bimalendu Pradhan, expressed his optimism in ORERA and believes this is a great step for those who have been wronged by homebuyers and are looking to have their problems resolved quicker. He mentioned that while homebuyers usually get favorable decisions, these decisions are not carried out. According to the rules, the ADM is responsible for enforcing these orders. The Supreme Court has outlined clear guidelines for completing such actions within six months, but less than 2% of the orders are actually enforced.
In other news, ORERA recently released a list of 57 promoters who did not pay the penalties levied on them for breaching various rules under the Odisha Real Estate (Regulation and Development) Act of 2016. Penalties worth INR 6.89 crores were instated on 60 developers, out of which only INR 23 lakh from 3 developers has been paid.
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