BHUBANESWAR: The Odisha Real Estate Appellate Tribunal (OREAT) has rejected an appeal from a developer contesting the conditions set by the Odisha Real Estate Regulatory Authority (ORERA) regarding the registration of phase III of a real estate project in Ghatikia.
When issuing the registration certificate for the third phase, ORERA imposed two key conditions: the developer must not execute any sale agreements without re-validated building plan approval or an occupancy certificate, and they must refrain from any sale agreements until the Orissa High Court’s mandate for correcting land records is fully adhered to.
The disagreement stems from discrepancies in revenue records, where 1.016 acres of the project land, allocated by the Bhubaneswar Development Authority, was classified as ‘jungle kisam’ or forest land. On September 3, 2024, the high court ordered the government to rectify these records within two months.
As the order remains unexecuted, the developer has filed a contempt petition that is currently pending in the high court. During the OREAT proceedings, the developer argued that the imposed conditions were arbitrary and unfairly penalized the company for governmental administrative oversights during land settlement.
The developer contended that agreements for sale do not confer title, thus should not face restrictions, particularly as the delay was beyond their control. ORERA, however, stood by the established conditions, emphasizing the need to protect potential homeowners.
In its March 1 ruling, OREAT noted that without the rectified land records, the title to the land remains uncertain, making it inadvisable for buyers to enter into legally binding agreements or expect valid ownership documentation. The tribunal underscored that valid sanctioned plans and adherence to approvals are essential under the Real Estate (Regulation and Development) Act, 2016. After reviewing the arguments and legal statutes, OREAT supported ORERA’s stance, concluding that the conditions were neither excessive nor illegal. It highlighted that allowing sale agreements in the absence of corrected land records would contradict the objectives of the RERA Act, which prioritizes homebuyer protection.
Previously, the National Green Tribunal had halted construction of the third project phase due to the lack of a valid environmental certificate from the State Environment Impact Assessment Authority (SEIAA) of Odisha. SEIAA mandated that the builder establish a necessary stormwater drainage system prior to resuming construction.
“This is one of the largest housing projects underway in the city. The project’s impact will be significant on nearby regions and other residential areas. The developer must adhere to regulatory requirements,” commented Sanu Das, a local resident who lodged a complaint with the NGT.
