The Odisha Real Estate Regulatory Authority (ORERA) has raised concerns about the integrity of real estate transactions in the state by releasing a list of 60 defaulting promoters who have been penalized for violating provisions of the Odisha Real Estate (Regulation and Development) Act, 2016. The penalties imposed on these promoters amount to over ₹66 crore, with a substantial portion of the penalties still unpaid. The action highlights the ongoing challenges in the state’s real estate sector, where transparency and compliance with regulatory norms are critical for protecting the interests of homebuyers and ensuring the proper functioning of the market.
ORERA’s decision to publish this list on November 28, 2024, comes after repeated failures by these promoters to comply with mandatory regulations, which include proper registration of real estate projects and the securing of approvals for layout designs. Activist Bimalendu Pradhan pointed out that many of these promoters are neither registered with ORERA nor have obtained the required approvals for the layouts of their project plots. In many cases, these developers have gone ahead and sold plots or apartments to unsuspecting buyers without meeting the legal requirements, creating potential legal and financial risks for those involved.
According to the information released by ORERA, the total penalties imposed on these promoters exceed ₹68.97 crore. However, only a small fraction of this amount—₹23 lakh—has been paid. The remaining penalties remain unsettled, raising concerns about the enforcement of the regulatory framework and the financial accountability of developers who disregard the rules.
The Odisha Real Estate (Regulation and Development) Act, 2016, was introduced to bring transparency to the real estate sector, ensure the protection of buyer interests, and expedite dispute resolution. Under the Act, real estate developers are required to register all commercial and residential real estate projects with ORERA before advertising, marketing, or selling any plots, apartments, or buildings. Furthermore, developers must provide quarterly updates on the progress of their projects to the regulatory authority. The failure to adhere to these regulations can lead to penalties, as seen in the case of the 60 defaulting promoters.
For buyers of properties within these unapproved projects, the consequences are severe. Since many of these projects lack proper layout approvals, it becomes impossible for buyers to secure essential public services such as electricity and water connections. In addition to the lack of basic amenities, the absence of legal approvals creates significant legal hurdles for buyers, who may face difficulties in obtaining property titles or dealing with future disputes related to land ownership and usage.
ORERA’s ongoing efforts to monitor and regulate the real estate sector are crucial for maintaining market integrity. However, experts emphasize that both regulatory bodies and consumers need to work together to ensure that such scams are minimized. Real estate developers, too, must adhere to established norms and procedures to build trust with buyers and contribute to the long-term growth of the industry.
