BHUBANESWAR: The Odisha Real Estate Appellate Tribunal (OREAT) has dismissed an appeal from a local promoter and upheld the Rs 3 lakh penalty for delivering flats in the Gadakana housing project without the necessary occupancy certificate (OC) and failing to secure registration from the Odisha Real Estate Regulatory Authority (ORERA). This ruling was issued on March 6.
The tribunal affirmed ORERA’s March 4, 2024, directive, which penalized the promoter for breaching Section 3(1) of the Real Estate (Regulation and Development) Act, 2016, which stipulates that all eligible projects must be registered before any sales or promotions occur.
The tribunal also upheld findings indicating the promoter violated Section 12(d) of the Bhubaneswar Development Authority’s approval, which requires an occupancy certificate prior to occupation.
The developer claimed the project was completed before the RERA Act took effect on May 1, 2017, presenting a completion certificate dated March 31, 2017, asserting that registration was unnecessary.
However, the tribunal deemed the document questionable and inconsistent with BDA’s planning and building standards regulations, noting it lacked essential attachments, including fire safety clearance, proof of service connection, and approved plans.
The tribunal further noted that the builder had multiple opportunities to submit a show-cause reply between October 2023 and February 2024 but failed to respond.
Rejecting the appellant’s claims of natural justice violations, the bench remarked that the promoter did not seize the opportunities provided, justifying ORERA’s actions in continuing the case.
Finding no illegality in ORERA’s ruling, the tribunal dismissed the appeal as lacking merit and ordered the builder to pay the Rs 3 lakh penalty to ORERA. Upon payment, the promoter will be eligible for a refund of the statutory amount submitted with the appeal.
