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The Odisha Real Estate Regulatory Authority (ORERA) has fined a developer INR 1 crore for accepting bookings without obtaining the mandatory registration certificate. The case, initiated by ORERA, highlights violations of the Odisha Real Estate (Regulation and Development) Act, 2016. Despite receiving approval from the Cuttack Development Authority in 2015, the developer applied for ORERA registration in 2017 but obtained it only in 2019 due to compliance issues. With construction delays persisting beyond the June 2022 deadline, ORERA enforced the penalty, reinforcing stricter oversight to protect homebuyers.
The Odisha Real Estate Regulatory Authority (ORERA) has taken a significant step to protect homebuyers by imposing a fine of INR 1 crore on a real estate developer. This action comes after the developer allegedly accepted a booking amount of INR 1 lakh from a buyer without the necessary registration certificate from ORERA. Advertisement
This case was initiated by ORERA itself, highlighting the authority's commitment to enforcing the Odisha Real Estate (Regulation and Development) Act, 2016. The law mandates that no promoter can advertise or sell any real estate project without first obtaining registration from ORERA. The developer in question was involved in a large project located in Phulnakhara and had begun accepting bookings in 2018, a time when the regulations were already in effect.
During the hearing, the developer's legal representative argued that the project had received approval from the Cuttack Development Authority in 2015, prior to the implementation of the RERA Act. They claimed that since the approval was granted before the law came into force, the registration was not required. However, ORERA found that while the developer applied for registration in 2017, it was not granted until 2019 due to non-compliance with certain requirements set by the authority.
The ORERA bench noted that the project had a completion date stipulated in the registration certificate of June 25, 2022, but construction is still ongoing, raising concerns for homebuyers who are waiting for their investments to materialize. A senior member of ORERA emphasized that the ongoing delays and lack of compliance directly affect the interests of homebuyers, prompting the decision to impose the fine.
In addition to the fine, ORERA's order states that the developer must pay the penalty within two months. If the payment is not made, ORERA has the authority to enforce the order and recover the penalty through legal means. This case serves as a reminder of the importance of regulatory compliance in the real estate sector and the ongoing efforts by ORERA to safeguard consumer rights in Odisha.
The actions taken by ORERA reflect a broader trend across India, where regulatory bodies are becoming more vigilant in enforcing real estate laws. Homebuyers are encouraged to verify that developers comply with regulations before making any financial commitments. This incident underscores the need for transparency and accountability in the real estate market, ensuring that buyers can trust developers to fulfill their obligations.
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