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The Odisha Real Estate Appellate Tribunal (OREAT) has upheld conditions imposed by the Odisha Real Estate Regulatory Authority (ORERA) on the registration of Phase III of a housing project in Ghatikia, Bhubaneswar. The tribunal rejected the developer's challenge and ruled that ORERA's restrictions were justified given unresolved issues relating to land classification and regulatory approvals. The authority had barred the developer from executing sale agreements until the building plan is revalidated, an occupancy certificate is obtained and land records affected by the misclassification of around 1.016 acres as forest land are corrected. The tribunal emphasized that the Real Estate (Regulation and Development) Act, 2016 prioritizes consumer protection and requires developers to meet regulatory compliance before selling units. The ruling reinforces regulatory oversight over real estate projects facing legal or environmental compliance issues.
The Odisha Real Estate Appellate Tribunal has upheld conditions imposed by the Odisha Real Estate Regulatory Authority on a housing project in Ghatikia, Bhubaneswar, dismissing a promoter's appeal that challenged the restrictions placed on the project's registration. Advertisement
The dispute relates to the registration of Phase III of a residential project, where ORERA had imposed several compliance requirements before permitting further sale of units. These conditions included restrictions on executing agreements for sale until the developer obtains a revalidated building plan, an occupancy certificate, and necessary corrections in land records.
One of the key issues in the case involves approximately 1.016 acres of land that had been misclassified as forest land, creating uncertainty over the legal status of the property. The tribunal observed that the classification issue must be resolved in accordance with directions issued earlier by the High Court before the project can proceed with sales or further development activities.
The developer had argued that the conditions imposed by ORERA were arbitrary and that delays in compliance were due to administrative lapses on the part of government authorities. However, the appellate tribunal rejected this argument, stating that unresolved land title issues and regulatory requirements justified the authority's decision to impose restrictions on the project.
The tribunal also noted that environmental compliance had been an area of concern. Earlier, the National Green Tribunal (NGT) had halted construction activity at the site because the project lacked the required environmental clearance. The NGT had directed the developer to construct a stormwater drainage system and ensure compliance with environmental norms.
By upholding ORERA's order, the tribunal reaffirmed the regulatory framework established under the Real Estate (Regulation and Development) Act, 2016, which aims to protect homebuyers and ensure transparency in the real estate sector.
Residents and homebuyer groups welcomed the decision, saying it would help ensure that regulatory and environmental requirements are fulfilled before the project proceeds further. The ruling highlights the increasing role of real estate regulators and tribunals in enforcing compliance and safeguarding buyer interests in housing projects.
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