The Bhubaneswar Development Authority (BDA) has amended several provisions governing its Ekamra Residency housing project to bring the scheme in line with the Real Estate (Regulation and Development) Act (RERA), 2016. The changes include a shorter timeline for refunding earnest money deposits (EMD), a revised interest calculation mechanism for delayed instalment payments and modifications to clauses covering taxation, allotment agreements and buyers’ obligations.
The amendments have been introduced through a corrigendum following a review of the project’s brochure and allotment conditions. The Ekamra Residency project, located in Bhubaneswar, has been facing a relatively weak response from applicants. The authority expects the revised provisions to improve clarity and ensure that the housing scheme follows the applicable regulatory framework.
One of the key changes concerns the refund of earnest money deposits to unsuccessful applicants. The BDA has reduced the refund period from 60 days to 45 days after approval by the Property Allotment Committee. The revised timeline is expected to provide applicants with quicker access to their deposited funds once the allotment process is completed.
The authority has also revised the interest applicable to buyers who delay instalment payments. Under the earlier provisions, delayed payments attracted a fixed annual interest rate of 12%. The amended clause links the interest rate to the State Bank of India’s highest Marginal Cost of Lending Rate (MCLR), plus 2%. This introduces a market-linked mechanism instead of retaining a fixed interest rate.
Changes to Taxation and Allotment Agreement Provisions
The corrigendum has also removed references to ground rent from several clauses dealing with the post-allotment responsibilities of buyers. This change forms part of the broader revision of the terms governing apartment allotments and the obligations of both the authority and property buyers.
Another amendment relates to changes in applicable tax rates. The earlier provision allowed the amount payable by buyers to increase if tax rates were revised. Under the new wording, the payable amount will be recalculated in accordance with the applicable tax revision. Legal experts have observed that the revised language is more consistent with standard RERA-related documentation.
The BDA has also rewritten certain sections of the allotment agreement dealing with apartment sales, the rights of allottees and the responsibilities of the promoter. These changes are intended to provide greater clarity on the contractual relationship between the authority and buyers.
Additionally, the provision allowing the BDA to offer rebates to buyers for making advance instalment payments has effectively been neutralised. The discount rate under this arrangement has been fixed at zero, removing the financial benefit previously available through advance payments.
BDA Reviews Project Provisions for Regulatory Compliance
BDA officials said the amendments are corrective measures introduced to ensure legal consistency rather than changes to the fundamental structure of the Ekamra Residency project. The corrigendum was issued after reviewing the provisions contained in the project’s brochure.
The amendments also indicate a clearer acknowledgement of RERA requirements in the authority’s housing allotment process. Real estate expert Bimalendu Pradhan noted that the BDA had previously maintained that its allotments were governed by the Odisha Development Authorities framework. The latest corrigendum, however, recognises the need to align the scheme’s provisions with RERA.
The revisions are significant for prospective applicants as they clarify payment obligations, refund timelines, taxation provisions and the rights of apartment buyers. For the BDA, aligning the Ekamra Residency project with the applicable regulatory framework is expected to establish greater consistency in its allotment procedures.
The changes come at a time when public development authorities are facing increasing expectations to maintain transparency and provide clear contractual terms in residential housing schemes. The revised provisions may help address some of the concerns surrounding the Ekamra Residency project as the BDA continues its efforts to attract applicants.
