BHUBANESWAR: The Odisha Real Estate Appellate Tribunal (OREAT) has dismissed an appeal filed by a city-based promoter and upheld the Rs 3 lakh penalty imposed on him for handing over flats at the Gadakana housing project without securing the mandatory occupancy certificate (OC) and for not obtaining the registration certificate from the Odisha Real Estate Regulatory Authority (ORERA). The OREAT order was passed on March 6.
The tribunal confirmed ORERA’s March 4, 2024, direction penalising the promoter for violating Section 3(1) of the Real Estate (Regulation and Development) Act, 2016, which mandates registration of all eligible projects before any sale or marketing.
It also upheld the finding that the promoter gave possession to allottees in violation of Section 12(d) of the Bhubaneswar Development Authority approval, which requires an occupancy certificate prior to occupation.
The developer argued that the project was completed before the RERA Act came into force on May 1, 2017, citing a completion certificate dated March 31, 2017, and therefore did not require registration.
The tribunal, however, found the document doubtful and not in accordance with BDA’s planning and building standards regulations. It noted that the certificate lacked mandatory attachments, including fire safety NOC, service linkage proof and approved plans.
The tribunal further observed that the builder was given several opportunities to file its show-cause reply between Oct 2023 and Feb 2024 but failed to submit any written response.
Rejecting the appellant’s claim of violation of natural justice, the bench noted that the promoter did not avail the opportunities and ORERA was justified in proceeding with the case.
Finding no illegality in ORERA’s order, the tribunal dismissed the appeal as devoid of merit and directed the builder to deposit the Rs 3 lakh penalty with ORERA. Upon payment, the promoter will be entitled to a refund of the statutory amount deposited at the time of filing the appeal.
