HC orders bring shift in real estate sector, protect homebuyers' interests

Time of India

2 days ago

Bhubaneswar: A series of orders passed by the Orissa high court recently, mostly in homebuyers' interest, are likely to bring a major shift in the real estate sector, particularly in Bhubaneswar.
Experts believe that the monopoly of developers is finally diminishing.
Hearing a plea from an allottee's association of a major housing project at Paikarapur in Kalinga Nagar, the Orissa HC brought a stay on the construction of an approach road by the developer to another of his projects since it was allegedly taken up in the common area of the existing housing project.
The builder, in this context, was executing a housing project in phases, which was never disclosed to the owners of the first project.
The builder fraudulently obtained plan approval from authorities and forcefully demolished a boundary wall, which was in the common area of the first project.
"According to the Apartment Ownership Act, the builder should hand over the common areas and the facilities to us and has no rights on the land, but here the builder used force. We approached the HC and received a verdict in our favour," said president of the housing society Ajit Kumar Choudhury.
In another verdict, the Orissa HC adjourned the matter in a case filed by a developers' association seeking a change in an ORERA notification, which says that all developers should keep 1% of the project value in its account for five years to cover expenses for any structural damage.
As per rules, the closure of a project can only be announced, and an occupancy certificate issued to a project if developers adhere to keeping the 1% of the project value, but it was challenged in the HC, and the verdict went in favour of the rules.
"ORERA in its notification mentioned that 1% amount should be kept in its account as security, which is to be utilised for maintenance till five years. A city-based developers' association challenged this notification, but the matter was adjourned," said real estate expert Bimalendu Pradhan.
Another case was filed a few months back to ensure appointments of the chairperson and members of ORERA, as all three positions went vacant since May 2025.
In the meantime, the govt has filled up all positions but doubts have been raised about the qualifications of one of the appointed members.
The HC, hearing the case on June 25, kept the matter and gave a next date of hearing. "The orders passed by the High Court recently have instilled hope among the buyers that they can fight for their own rights and win," Pradhan said.
In another case, a complaint was raised on two major issues: Was BDA correct in giving plan approval to a project within a BMC area after the power to approve plans was delegated from BDA to BMC in 2015, and was the revised plan valid? The HC asked the BMC to dispose of the matter in two months.
In yet another case, the HC heard whether a project being executed in phases should have one association or multiple ones. The matter was challenged by a major city-based developer, on which the HC brought a stay order on the use of common areas.