Bhubaneswar ADM Serves Notice to Builder for Defying ORERA Order

11 Dec 2024 CW Team

Sources revealed that the developer had undertaken a multi-storied housing project in Ghatikia but did not deliver the houses within the promised timeframe. This delay prompted 18 homebuyers to file a complaint with ORERA, which subsequently ordered the developer to pay compensation amounting to Rs 87.94 lakh. Although the developer appealed the order at the Odisha Real Estate Appellate Tribunal (OREAT), the tribunal dismissed the appeal, reaffirming ORERA's verdict in favour of the homebuyers.

In a recent move, the ADM issued a show-cause notice to the developer, questioning why an arrest warrant should not be issued for repeated non-compliance with the ORERA order. The notice stated that the developer had failed to settle the Rs 87.94 lakh compensation and warned that the execution of the case might lead to arrest and imprisonment. The developer was instructed to appear before the court on December 31 to provide an explanation and avoid potential civil imprisonment.

Earlier this year, the Supreme Court of India had ordered the attachment of the developer’s movable and immovable assets following a plea by one of the homebuyers concerning delays in receiving their house. The court’s intervention was seen as a significant step toward ensuring justice for homebuyers.

Commenting on the situation, Bimalendu Pradhan, one of the affected buyers, described it as a positive development for homebuyers seeking resolution of their grievances. He emphasized that while favorable orders are often issued, their execution remains a challenge. Pradhan highlighted that the ADM is responsible for enforcing recoveries and pointed out that the Supreme Court has mandated such orders be executed within six months, though the actual execution rate is alarmingly low at less than 2 per cent.

Meanwhile, ORERA has recently released a list of 57 promoters who failed to pay penalties imposed for violating provisions of the Odisha Real Estate (Regulation and Development) Act, 2016. Records show that penalties totalling Rs 60.89 million were levied on 60 realtors, but only Rs 2.3 million has been recovered to date. Of these, merely three promoters have complied with the penalty orders.

A city-based real estate developer has been issued a show-cause notice by the Additional District Magistrate (ADM) of Bhubaneswar for failing to comply with an order from the Odisha Real Estate Regulatory Authority (ORERA). The order directed the developer to compensate aggrieved homebuyers in connection with a case from 2019. Sources revealed that the developer had undertaken a multi-storied housing project in Ghatikia but did not deliver the houses within the promised timeframe. This delay prompted 18 homebuyers to file a complaint with ORERA, which subsequently ordered the developer to pay compensation amounting to Rs 87.94 lakh. Although the developer appealed the order at the Odisha Real Estate Appellate Tribunal (OREAT), the tribunal dismissed the appeal, reaffirming ORERA's verdict in favour of the homebuyers. In a recent move, the ADM issued a show-cause notice to the developer, questioning why an arrest warrant should not be issued for repeated non-compliance with the ORERA order. The notice stated that the developer had failed to settle the Rs 87.94 lakh compensation and warned that the execution of the case might lead to arrest and imprisonment. The developer was instructed to appear before the court on December 31 to provide an explanation and avoid potential civil imprisonment. Earlier this year, the Supreme Court of India had ordered the attachment of the developer’s movable and immovable assets following a plea by one of the homebuyers concerning delays in receiving their house. The court’s intervention was seen as a significant step toward ensuring justice for homebuyers. Commenting on the situation, Bimalendu Pradhan, one of the affected buyers, described it as a positive development for homebuyers seeking resolution of their grievances. He emphasized that while favorable orders are often issued, their execution remains a challenge. Pradhan highlighted that the ADM is responsible for enforcing recoveries and pointed out that the Supreme Court has mandated such orders be executed within six months, though the actual execution rate is alarmingly low at less than 2 per cent. Meanwhile, ORERA has recently released a list of 57 promoters who failed to pay penalties imposed for violating provisions of the Odisha Real Estate (Regulation and Development) Act, 2016. Records show that penalties totalling Rs 60.89 million were levied on 60 realtors, but only Rs 2.3 million has been recovered to date. Of these, merely three promoters have complied with the penalty orders.

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