BHUBANESWAR: The Odisha Real Estate Appellate Tribunal (OREAT) has rejected an appeal from a local realtor disputing the applicability of the RERA Act, 2016 to its residential project in Andharua.
During a recent session, the tribunal affirmed the Odisha Real Estate Regulatory Authority’s (ORERA) previous decision, mandating the developer to compensate the buyer and adhere to essential legal requirements.
The case stemmed from a complaint by homebuyer Surya Prakash, who cited delays in possession, the absence of mandatory occupancy and fire safety certificates, and the failure to deliver the promised amenities as outlined in the sale agreement. Despite investing Rs 47.84 lakh, he took possession nearly 20 months late, in August 2021, without essential certifications.
In its defense, the developer claimed the project was completed before RERA was enacted on May 1, 2017, and indicated that completion certificates were granted twice in March and April 2017.
However, OREAT deemed those certificates invalid, stating they were not issued by an authorized body and did not adhere to the Building Development Authority’s (BDA) regulations. The tribunal also pointed out that the BDA had rejected the occupancy certificate application due to construction discrepancies and missing paperwork.
The tribunal ruled in favor of the buyer, mandating the developer to pay interest at a rate of 10.2% per annum on Rs 47.84 lakh from December 7, 2019, to August 3, 2021. Furthermore, it instructed the builder to obtain a valid occupancy certificate from the appropriate authority legally.
On the topic of amenities and maintenance, the tribunal highlighted that all promised features must be delivered to buyers according to the sale agreement. It directed the builder to facilitate the establishment of an association for allottees and to transfer common areas as stipulated in Section 17 of RERA. The tribunal stressed that failure to comply within two months could initiate further legal action by the complainant.
“The developer has overstepped all boundaries by spreading falsehoods. They have also disregarded the ORERA ruling and filed an appeal with OREAT. However, their deceit has been revealed,” said Prakash.
