BHUBANESWAR: Chief Justice of India Surya Kant delivered a stern critique to states regarding the performance of the Real Estate Regulatory Authorities (RERAs), stating that many have turned into “rehabilitation centres for retirees” rather than serving to protect homebuyers.
The CJI urged states to “revisit and rethink the very purpose of constituting the RERA,” pointing out the disillusionment among those whom these institutions were intended to help. “The truth is that none of them are receiving any substantial relief,” he remarked, highlighting the need for immediate reforms.
In Odisha, the Real Estate Regulatory Authority is entirely staffed by retired officials, which raises questions about its effectiveness and accountability. Recent appointments, including a land expert and a civil engineer, were also retirees aimed at strengthening the authority.
Data presented in the state assembly indicates that the Odisha RERA is struggling with order execution and penalty recovery. Over the past five years, 297 cases have been sent to the Khurda collector for penalty recovery from defaulting builders, with nearly all cases remaining unresolved, showcasing a stagnant enforcement mechanism.
Another report released by ORERA reveals that between 2017 and 2024, a massive Rs 6.89 crore in penalties was assessed against promoters, yet only Rs 23 lakh was recovered, predominantly concerning plotting projects in Bhubaneswar.
Real estate expert Bimalendu Pradhan reiterated the CJI’s concerns, stating, “The order execution of ORERA remains inadequate. While RERA was established to protect homebuyers, its effectiveness is diminishing,” emphasizing the need for urgent government intervention.
Housing activists in the state contend that the Odisha RERA is overly focused on regulation, primarily issuing notices, holding hearings, and compiling penalty orders, neglecting its broader development mandate under the Real Estate (Regulation and Development) Act, 2016.
“The law enables RERA to specify construction standards, but in Odisha, this has yet to be prioritized, leading to significant concerns,” said activist Sarat Dash, emphasizing the need for the authority to transition from a complaint-driven system to a development-focused regulatory approach.
A senior official from the housing and urban development department responded to the criticism, stating that the government is making efforts to enhance enforcement. “We are implementing steps to expedite ORERA order executions by improving coordination with district administrations and development authorities,” the official stated.
With the Supreme Court publicly questioning the reliability of RERA institutions nationwide, experts assert that Odisha must revamp its strategy. This includes appointing domain specialists instead of retirees and enhancing enforcement, penalty recovery, and real-time monitoring of ongoing projects.
