BHUBANESWAR: The Odisha Real Estate Appellate Tribunal (OREAT) has rejected an appeal from a local realtor, affirming an order from the Odisha Real Estate Regulatory Authority (ORERA) that mandates the developer acquire completion and occupancy certificates (OC) for a duplex project in Janla.
Upon discovering violations by the builder, OREAT instructed the formation of an allottees’ association and the transfer of common areas and statutory documents to the property buyers within two months. The project comprises 41 duplex apartments.
An OREAT panel asserted that the real estate company is the promoter of the entire development and cannot lessen its legal responsibilities by presenting itself merely as a land developer or contractor.
Records show the Bhubaneswar Development Authority (BDA) greenlit the project in February 2010 as a group housing scheme, contingent upon several requirements including the submission of a completion certificate, a request for OC before occupation, and the registration of an apartment owners’ association under the Odisha Apartment Ownership Act of 1982.
The tribunal noted that the builder initially sold subdivided plots before entering into construction agreements with individual purchasers, constituting a significant deviation from the BDA’s group housing approval.
Labeling such agreements “illegal to the extent they contravene statutory approval conditions,” OREAT affirmed that the statutory framework takes precedence over private arrangements. It reiterated that the promoter is required to construct strictly in accordance with the approved plan and meet all prescribed conditions.
Noting that no completion certificate or OC had been issued and that duplexes have been in use since 2013, the tribunal categorized the project as ongoing from May 1, 2017, thus bringing it under the RERA framework. A buyer, who lodged the complaint, alleged that the builder was attempting to monopolize the common areas of the project.
OREAT upheld ORERA’s directives compelling the builder to secure the completion certificate and OC from the appropriate authority, facilitate the registration of the allottees’ association, transfer common areas and amenities along with necessary documents, and maintain shared services until formal handover.
Dismissing the builder’s objections, OREAT clarified that the complainant, who acquired duplex no. 4 in December 2018, qualifies as an “allottee” under Section 2(d) of the RERA Act, making the complaint permissible.
The tribunal ordered that a copy of the ruling be forwarded to the BDA to inform them of the promoter’s “unethical behavior” in advancing the project outside the approved layout and group housing building plan.
