OREAT dismisses promoter’s appeal against ORERA conditions on Ghatikia project

Bhubaneswar: The Odisha Real Estate Appellate Tribunal (OREAT) has dismissed an appeal filed by a promoter challenging the conditions imposed by Odisha Real Estate Regulatory Authority (ORERA) on the registration of phase III of his real estate project in Ghatikia. ORERA, while issuing the registration certificate for the third phase, put two conditions before the promoter — barring the company from executing any agreement for sale without re-validated building plan approval or an occupancy certificate and prohibit any sale agreements until the Orissa high court's directions on correction of land records were fully complied with.
The dispute arose from a mismatch in revenue records, where 1.016 acres of the project land — originally allotted by the Bhubaneswar Development Authority — was recorded as ‘jungle kisam', or forest land. The high court, on Sept 3, 2024, ordered the govt for correction of these records within two months.With the order yet to be implemented, the project's developer filed a contempt petition with the high court that remained pending. Arguing before OREAT, the developer said the conditions were arbitrary, disproportionate and unfairly penalised the company for administrative lapses committed by govt departments during land settlement.The promoter maintained that agreements for sale do not create title and therefore, should not be restricted, especially when the delay was beyond its control. ORERA, however, defended the conditions, stating that they were necessary to safeguard prospective homebuyers.OREAT, in its March 1 order, argued that without the corrected records, the land title remained in a fluid state, making it unsafe for buyers to enter into binding agreements or expect valid deeds or possession. It also pointed out that valid sanctioned plans and compliance with approvals are mandatory under the Real Estate (Regulation and Development) Act, 2016. After examining the submissions and legal provisions, the tribunal upheld ORERA's position, observing that the clauses were neither excessive nor unlawful. It noted that allowing sale agreements without corrected land records would run contrary to the objectives of the RERA Act, which emphasises protection of homebuyers.Last year, the National Green Tribunal had also stopped the construction of the third phase of the project as it lacked a valid environmental certificate from the State Environment Impact Assessment Authority (SEIAA) of Odisha. SEIAA asked the builder to construct a necessary storm water drain before continuing construction."This is one of the biggest housing projects being executed in the city. The load of the project will be paramount in the nearby areas and other housing societies in the vicinity. The promoter has to comply with the regulations," Sanu Das, a resident who filed the complaint with the NGT, said.