SC Upholds Orissa HC Ruling on Pahala Project CC Legality


BHUBANESWAR: The Supreme Court has stayed the Odisha High Court’s December 2025 decision that overturned the orders of the Odisha Real Estate Appellate Tribunal (OREAT) concerning a significant real estate project in Pahala, located on the outskirts of the city, along with the interests of its allottees.

The High Court previously determined that the project was completed before the initiation of the Odisha Real Estate (Regulation and Development) Act, 2016 (RERA), rendering homebuyers’ complaints inadmissible. This conclusion was based on a completion certificate issued for the project in 2015. However, the Supreme Court’s intervention has placed this ruling on hold, creating new uncertainty regarding the project’s regulatory standing. In its ruling delivered on December 22, 2025, the High Court favored the promoter, asserting that the project was indeed completed in 2015 with a valid completion certificate, thus exempting it from RERA regulations.

The Supreme Court clarified the distinction between a completion certificate and an occupancy certificate, indicating that the lack of fire safety clearance or an occupancy certificate does not imply that the project is still ongoing. This stay effectively suspends the High Court’s interpretation, allowing for further review of the matter.

Real estate experts and legal analysts noted the significant impact of the Supreme Court’s stay. “This stay is crucial as it reopens the discussion on whether completion certificates alone can protect projects from RERA evaluation,” said real estate expert Bimalendu Pradhan.

He continued, “While the High Court adopted a promoter-friendly stance, it appears the Supreme Court intends to scrutinize whether consumer rights have been compromised. The completion certificate is issued by an architect confirming project completion, whereas an occupancy certificate indicates that the project is suitable for habitation.”

Property law specialist Rashmi Sahu remarked on the contentious nature of the distinction between the two certificates. “By staying the High Court’s decision, the apex court signals that adherence to procedural regulations, including fire safety and civic infrastructure, is crucial in determining project completion,” she noted.

In this case, the promoter contended that the Pahala project should fall outside RERA jurisdiction since the completion certificate was issued in 2015, prior to the enforcement of the Odisha Real Estate (Regulation and Development) Act, 2016, in May 2017. In contrast, the project allottees who filed the petition argued that because the project sought a revised layout in 2019 and lacks both a fire safety certificate and an occupancy certificate, it should be regarded as ongoing.

“For developers, this stay introduces new uncertainty, as many projects across Odisha completed before May 2017 lack occupancy certificates. Should the Supreme Court rule that such projects are still ongoing, it may significantly broaden RERA’s scope,” added Pradhan.

  • Published On Jan 30, 2026 at 07:39 AM IST

Join the community of 2M+ industry professionals.

Subscribe to our newsletter for the latest insights & analysis in your inbox.

Access ETRealty industry news right on your smartphone!