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The Odisha Real Estate Appellate Tribunal (OREAT) has dismissed a promoter's appeal against an Odisha Real Estate Regulatory Authority (ORERA) order and upheld directions aimed at protecting the interests of apartment owners in a major residential project located in Patia.
The tribunal, during a recent hearing, held that the promoter is statutorily bound to comply with ORERA's directions relating to the provision of promised amenities, rectification of structural defects, disclosure of maintenance and corpus fund accounts, and transfer of common areas to the association of allottees.
What the Complaint Alleged
A complaint was filed by the apartment owners' association, alleging that several promised facilities remained incomplete even after possession had been handed over to residents. The association also raised concerns over the absence of an occupancy certificate, deficiencies in common infrastructure and structural issues.
Referring to a joint inspection conducted by ORERA's enforcement officer and empanelled engineer, the tribunal noted deficiencies in the project, including the non-provision of certain common amenities such as a community hall, gymnasium, park or garden, and a boundary wall on one side of the complex. The tribunal further took note of inspection findings relating to cracks, seepage and leakage in portions of the building, observing that the promoter did not challenge these findings and was therefore obligated under the Real Estate (Regulation and Development) Act, 2016, to rectify the defects reported by residents.
- Tribunal: Odisha Real Estate Appellate Tribunal (OREAT)
- Original order: Odisha Real Estate Regulatory Authority (ORERA)
- Location: residential project in Patia, Bhubaneswar
- Missing amenities cited: community hall, gymnasium, park/garden, boundary wall on one side
- Structural issues noted: cracks, seepage and leakage in portions of the building
- Timeline given to promoter: 3 months to complete all formalities
Also Read: Antyodaya Gruha Yojana: Odisha's Cash Push for Rural Homes
The Promoter's Defence and the Tribunal's Response
During the proceedings, the promoter attributed delays and deficiencies to disputes with the landowner and difficulties in obtaining the occupancy certificate. However, OREAT held that disputes between a promoter and a landowner cannot dilute the rights of allottees, and that the promoter remains responsible for fulfilling its commitments regardless of such disputes.
What the Promoter Must Now Do
Significantly, OREAT said the promoter must continue maintaining common areas until they are formally handed over to the association, endorsing ORERA's direction that maintenance charges should not be collected from residents until such handover takes place.
The tribunal also reiterated that obtaining completion and occupancy certificates is the promoter's statutory responsibility and that these documents must eventually be handed over to the association of allottees. OREAT dismissed the appeal and gave the builder three months to complete all the formalities.
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