BHUBANESWAR: In a major setback to Bhubaneswar Development Authority (BDA), the Odisha Real Estate Regulatory Authority (ORERA) has stayed a housing project taken up by the development agency in the State Capital and asked why registration certificate (RC) of the project should not be revoked.
The regulator found non-compliance to the norms of Real Estate (Regulation and Development) Act 2016 and suppression of material facts.BDA will have to comply with the show cause by October 11, the date on which the matter has been posted for its next hearing.
In its interim order, a full bench of ORERA underlined that in the absence of a format of ‘agreement for sale’ as per the provision of Odisha Real Estate (Regulation and Development) Rules 2017, the promoter cannot continue the process for selection of allottees by receiving the booking amount.
ORERA also pointed out as per RERA norms, submission of proforma of the allotment letter, agreement for sale and conveyance deed proposed to be signed by the allottees is mandatory to obtain registration.
The BDA, however, took approval and registration certificate for the housing project on the basis of a mere brochure which is contrary to RERA norms that makes ‘agreement for sale’ between promoter and buyer mandatory for allotment of flats and registration of sale deeds.
The regulatory authority flayed BDA for allegedly publishing in its brochure to receive 80 per cent of flat value without entering into contract effected by execution of an agreement for sale as per the ORERA norms.BDA has taken up ‘Daya Enclave’ project on Bhagabanpur Mouza of the Capital at an investment of around Rs 44 crore.
In August RERA activists had sought intervention of the authority citing non-complaince to norms by BDA in implementation of the housing project. The ORERA order came on the basis of the petition filed by activist Bimalendu Pradhan on September 16.