CUTTACK: The Orissa High Court on Wednesday stayed the operation of the February 1 notification issued by the Housing and Urban Development department to purportedly “remove any ambiguity” in the application of the Odisha Apartment (Ownership and Management) Act, 2023.
The division bench of Acting Chief Justice Arindam Sinha and Justice MS Sahoo issued the interim stay order on a petition filed by Bimalendu Pradhan, a resident of Bhubaneswar.
In his petition, Pradhan contended that in the OAOM Act there is a clear bar for registration of an apartment if the apartment does not have an occupancy certificate (OC) and if the association of allottees of the apartment has not been formed and registered. Advocate Mohit Agarwal argued on Pradhan’s behalf.
Endorsing it, the bench said since the Act applies to all apartments irrespective of those having been constructed or developed, in event such transfer deeds were not executed prior to coming into force of the 2023 Act, the bar applies. Association of allotees must first be formed and then the transfer(s) executed.
“In the circumstances, the situation arising cannot be dealt with on executive instructions,” the bench observed, adding, “Operation of notification dated February 1, 2025 is stayed till next date of hearing (February 19).”
The notification said: “It is hereby clarified that registration authorities shall not deny the registration of any apartment citing provisions of OAOM Act, if the apartment was completed before the commencement of the RERA in the state - prior to February 25, 2017. Accordingly, the department of Revenue and Disaster Management will be requested to issue suitable instructions to the registration officers to facilitate the registration of such apartments.”
In the petition, Pradhan alleged the notification “is unreasoned and arbitrary without disclosing what problems were faced by allottees.”
“The impugned notification has been issued clearly to favour certain builders who have been duping the innocent buyers by selling them incomplete flats which have not received occupancy certificate and apartments where no association of allottees have been formed as has been annexed in the writ petition. The impugned notification is unreasoned and arbitrary without disclosing what problems were faced by allottees”, the petition alleged.