Location Of Project Immaterial For RERA Applicability, Odisha REAT Dismisses Developer's Appeal

The Odisha Real Estate Appellate Tribunal has reaffirmed that the Real Estate (Regulation and Development) Act, 2016 applies to ongoing housing projects regardless of whether they are located within municipal limits or in gram panchayat areas.

The ruling came while dismissing an appeal filed by Shree Infra Properties Pvt. Ltd.

The developer had argued that the project, situated in Guali Gram Panchayat in Cuttack district and not within the limits of any urban development authority, was outside the scope of RERA. It also contended that the project had been completed before the commencement of the Act and that the Regulatory Authority lacked jurisdiction.

Rejecting the plea, the Bench of Chairperson Justice P. Patnaik and Members S.K. Rajguru and Dr. B.K. Das, relying on the Supreme Court's decision in Newtech Promoters and Developers Pvt. Ltd. v. State of U.P., observed:

“The plea raised for the first time in the appeal however shows the appellant's misconception of law as the applicability of the RERA Act is no way relevant to the location of the real estate project. Section 3 of the Act and the Newtech Promoters case law make it clear that, real estate projects, that are ongoing on the date of commencement of the RERA Act and for which completion certificate has not been issued will come under its purview. The place where a real estate project is developed is immaterial."

The dispute arose from a complaint by homebuyer Divya Narayan Panda. He had purchased sub-plot No. 430 with a simplex house in the Shree Galaxy City project under a registered sale deed dated May 11, 2016. Possession was delivered on May 14, 2019.

Panda alleged that the developer constructed a pump house on the road in front of his house. The layout plan attached to the sale deed showed a 20-foot road. He claimed that its width was reduced to 13 feet. He also complained of obstruction of air and sunlight and continuous noise from the pump.

ORERA directed the developer to remove the pump house and restore the 20-foot road within two months.

The Tribunal said the sale deed clearly showed a 20-foot road and that the developer had no evidence to reduce it. It also referred to the developer's affidavit admitting that a 20-foot road had been promised but not provided.

Holding that the promoter was duty bound to provide a 20-foot road in front of the allottee's house, the tribunal found no factual or legal infirmity in the Regulatory Authority's order and dismissed the appeal.

For Appellant: Shree Infra Properties Pvt. Limited: Advocate L.K. Maharana

For Respondent: ORERA, Bhubaneswar: Advocate B. Nayak