BHUBANESWAR: The Odisha Real Estate Appellate Tribunal (OREAT) has rejected a promoter’s appeal against a ruling by the Odisha Real Estate Regulatory Authority (ORERA), affirming decisions aimed at safeguarding apartment owners’ interests in a significant residential project in Patia.
During a recent session, the tribunal asserted that the promoter is legally required to adhere to ORERA’s directives regarding promised amenities, rectification of structural flaws, transparency in maintenance and corpus fund accounts, as well as the transfer of common areas to the allottees’ association.
According to the case background, a complaint was lodged by the apartment owners’ association, highlighting that numerous promised facilities were incomplete even after residents had taken possession. Issues were also raised about the lack of an occupancy certificate, inadequate common infrastructure, and various structural defects.
In light of a joint inspection by ORERA’s enforcement officer and an assigned engineer, the tribunal observed several shortcomings in the project, including the absence of key communal amenities such as a community hall, gym, park or garden, and a boundary wall on one side of the complex.
The tribunal further acknowledged inspection reports indicating cracks, seepage, and leaks in certain building sections. The promoter did not contest these findings and, as a result, was deemed obligated under the Real Estate (Regulation and Development) Act, 2016, to address the issues raised by residents.
During the proceedings, the promoter cited disputes with the landowner and difficulties in obtaining the occupancy certificate as reasons for the delays and deficiencies. Nevertheless, OREAT upheld that conflicts between a promoter and a landowner do not lessen the rights of the allottees and that the promoter must fulfill its obligations.
OREAT emphasized that the promoter is responsible for maintaining common areas until they are officially transferred to the residents’ association and agreed that no maintenance charges should be levied from residents until the transfer occurs.
The tribunal also reinforced that it is the promoter’s legal duty to secure completion and occupancy certificates, which must ultimately be transferred to the allottees’ association. OREAT dismissed the appeal, granting the builder three months to complete all necessary formalities.
