BHUBANESWAR: In a landmark move, the Kantabada panchayat has turned to the Odisha Real Estate Appellate Tribunal (OREAT) to contest the Bhubaneswar Development Authority’s (BDA) approval of a private housing project, claiming it encroaches on the panchayat’s jurisdiction without proper authority.
The tribunal supported the panchayat’s appeal, reversing an earlier decision by the Odisha Real Estate Regulatory Authority (ORERA) that had dismissed the grievance on the grounds of maintainability. OREAT determined that the definition of “aggrieved person” under RERA should not be limited solely to allottees, promoters, or real estate agents.
The conflict revolves around a three-storey residential development comprising 26 units in Kantabada. The panchayat asserts that the BDA issued plan approval despite the area still being classified as rural and under the panchayat’s jurisdiction for such approvals.
As outlined in a 2018 notification from the panchayati raj and drinking water department, panchayats have the authority to grant plan approvals for buildings in their region. In December 2024, ORERA dismissed the complaint filed by the Kantabada sarpanch, claiming she did not qualify as an aggrieved party since she was neither an allottee, promoter, nor real estate agent.
Overturning this decision, the appellate tribunal pointed out that ORERA had incorrectly interpreted Section 31(1) of the Act. The tribunal stated, “A complainant under the Act is not confined to those three categories. What is essential is that the complaint is filed against a promoter, allottee, or real estate agent.”
Additionally, the tribunal indicated that a gram panchayat qualifies as a competent authority and falls under the definition of a person according to the RERA Act. Given the allegations of fact suppression and jurisdictional breaches related to the project’s registration, the panchayat was justified in approaching ORERA.
OREAT noted that ORERA overlooked key issues, including whether the BDA had the authority to grant plan approval in Kantabada and the status of the project’s registration. The tribunal instructed ORERA to reconsider the case on May 4, with a directive to resolve the matter by the end of May.
“The legislature’s intention was to consolidate all real estate-related disputes, leading to the establishment of ORERA. Misinterpretations can create confusion, but OREAT’s rulings instill confidence in the system,” said real estate expert Bimalendu Pradhan.
