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The Odisha High Court has stayed the state government's notification exempting apartments completed before February 25, 2017, from the Odisha Apartment (Ownership and Management) Act, 2023. The court acted on a petition alleging that the move arbitrarily favored builders and violated legal provisions requiring occupancy certificates and registered associations for apartment registration. The government justified the notification as a measure to streamline property registrations.
The Odisha government's attempt to clarify ambiguities in the Odisha Apartment (Ownership and Management) (OAOM) Act, 2023, has encountered a significant hurdle. The Odisha High Court recently issued a stay order on the Housing and Urban Development Department's notification, which had exempted apartments completed before February 25, 2017, from the OAOM Act's provisions. Advertisement
A division bench, led by Acting Chief Justice Arindam Sinha and Justice M.S. Sahoo, granted the interim stay while hearing a petition that challenged the notification's validity. The petitioner alleged that the move was arbitrary and favoured certain builders. The court has asked the state government and the inspector general of registration to respond and scheduled a hearing in the coming days.
The housing and urban development minister, Krushna Chandra Mahapatra, stated that the government would study the court's order and take necessary legal steps. He explained that the notification was intended to address widespread issues faced by apartment owners during property registration. The February notification specifically directed registration authorities to process registrations for apartments completed before February 25, 2017, when the Real Estate (Regulation and Development) Act (RERA) was implemented in the state. Officials noted that misconceptions about the OAOM Act's retrospective application had led to inconsistent practices by registration officers across Odisha.
However, the petitioner, Bimalendu Pradhan, contended that the OAOM Act clearly prohibits the registration of apartments lacking occupancy certificates or a registered association of allottees. Represented by advocate Mohit Agarwal, the petitioner argued that the notification encouraged builders to bypass legal requirements and exploit buyers.
The petition claimed that the notification was arbitrary, failed to justify the challenges it aimed to resolve, and unfairly favoured builders. Allegedly, it allowed developers to sell incomplete flats without occupancy certificates or proper associations, leaving buyers vulnerable.
The court's stay order has left apartment owners in limbo, particularly those who relied on the notification to resolve long-pending registration issues. Many property owners could face delays in obtaining legal rights over their apartments, adding financial and legal stress. Prospective buyers of older apartments may also be deterred by the uncertainty surrounding registration processes.
This case highlights the difficulty of enforcing retrospective laws while ensuring fairness for all parties involved. Builders, homeowners, and regulatory authorities all have competing interests, and achieving a balance between them remains a significant challenge. The court's ultimate decision could set a precedent for addressing similar disputes in the future.
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