Odisha REAT Sets Aside RERA's ₹7 Lakh Penalty Over Notice Served At Wrong Address

The Odisha Real Estate Appellate Tribunal (REAT) has ruled that an ex parte penalty imposed by the Odisha Real Estate Regulatory Authority (ORERA) cannot be sustained where notice was served at the wrong address.

It consequently set aside a ₹7 lakh penalty imposed on Bhawani Construction Pvt. Ltd.

A Bench of Chairperson Justice P. Patnaik and Members S.K. Rajguru and Dr. B.K. Das held that the company had been denied a reasonable opportunity to be heard because ORERA had issued notice to an incorrect address. The Tribunal said this violated the principles of natural justice.

The tribunal observed, "'Audi alterem partem' is the sinequanon of observance of principle of natural justice. Right of being heard is an essential condition precedent for effective adjudication of the lis. Therefore, breach of principle of natural justice has caused prejudice to the affected party. Therefore, as a necessary corollary the affected party i.e. the appellant is legally entitled to be afforded reasonable opportunity of hearing by the learned ORERA."

The dispute arose from suo motu proceedings initiated by ORERA against Bhawani Construction Pvt. Ltd. ORERA proceeded ex parte after the company failed to appear. By an order dated July 14, 2023, it imposed a penalty of ₹7 lakh.

The company challenged the order before the Appellate Tribunal. It argued that ORERA had issued notice to "Plot No. 59/C, Jayadurga Nagar, Bhubaneswar, Khurda", which was never its address.

The company submitted that its registered office is in West Bengal and its working office is at BMC Bhawani Commercial Enclave, Saheed Nagar, Bhubaneswar. It also stated that it became aware of the ex parte order only after receiving summons in the execution proceedings.

ORERA fairly submitted that notice had been issued to the wrong address. It accepted that there was, therefore, no occasion for the company to appear and defend itself in the suo motu proceedings.

Agreeing with the parties, the tribunal found that notice had indisputably been issued to the wrong address. It held that the company's absence from the proceedings was a natural consequence.

The tribunal, therefore, allowed the appeal and quashed the ex parte order. It remitted the matter to ORERA with directions to grant the company an opportunity of hearing and permit it to produce documents in support of its case.

The authority was also directed to decide the matter afresh, preferably within two months from June 22, 2026. 

For Appellant (Bhawani Construction Pvt. Ltd.): Advocate M. Agarwal.

For Respondent (Odisha Real Estate Regulatory Authority): Advocate B. Nayak.