OREAT Upholds ORERA Order Directing Developer To Maintain Common Areas Without Charges Until Handover

The Odisha Real Estate Appellate Tribunal (OREAT) has upheld an Odisha Real Estate Regulatory Authority (ORERA) order directing ODI-Tech Properties Pvt. Ltd. to maintain the common areas of its 'Oditech Pride' housing project without collecting maintenance charges from homebuyers.

It held that the developer must continue to do so until management is handed over to the Oditech Pride Buyers Association.

"The learned ORERA's direction to the appellant to maintain the common areas without collecting maintenance charges from the allottees is justified as the delay in handing over of the maintenance of the common areas to the respondent no.1-association is due to the inability of the appellant to obtain the occupancy certificate and register the transfer of common areas to the association of allottees," the tribunal observed.

A bench of Judicial Member S.K. Rajguru and Tech./Administrative Member Dr. B.K. Das dismissed the developer's appeal against ORERA's January 21, 2023 order.

The dispute relates to the "ODITECH PRIDE" residential project at Patia, Bhubaneswar. The buyers' association approached ORERA in July 2022. It alleged that although possession had been handed over from July 12, 2021, the developer had not obtained the Occupancy Certificate or executed conveyance deeds.

It also said several promised facilities remained incomplete even as maintenance charges continued to be collected. ORERA directed the developer to complete the pending work, rectify defects, obtain the Occupancy Certificate, transfer management of the common areas and maintain them without charging residents until the handover.

Before the tribunal, the developer argued that the project had been completed according to the approved plan. It said delays by the Bhubaneswar Municipal Corporation and obstruction by the landowner had prevented it from obtaining the Occupancy Certificate and executing sale deeds.

The tribunal found that the developer had not challenged ORERA's findings that several promised amenities had not been provided. These included the community hall, gymnasium, park or garden, the southern boundary wall and only one lift had been installed against the approved provision of three.

"The appellant-promoter having not challenged the non-providing of the aforesaid amenities in the appeal, certainly owes a responsibility to provide the same to the allottees as per sec. 11 (4) (a) of the RE & RD Act, 2016," it held.

The tribunal also upheld ORERA's direction requiring the developer to rectify cracks, seepage and other construction defects.

Referring to Section 14(3) of the RERA Act, it observed, "As section 14 (3) of the Act puts an obligation on the promoter to rectify structural defects or any other defect in workmanship, quality or provision of services brought to his notice within a period of five years by the allottee from the date of handing over of possession, the appellant has to comply with the direction of learned ORERA in the impugned order and the report of inspecting team in this regard."

Dismissing the appeal, the tribunal modified only one part of ORERA's order. It extended the time for executing the conveyance deed for the common areas from two months to three months after the Occupancy Certificate is obtained.

For appellant (ODI-Tech Properties Pvt. Ltd.): Advocate S.N. Das.

For respondent No. 1 (Oditech Pride Buyers Association): Advocate R.C. Rath.

For respondent No. 2 (Babaji Sahoo): Advocate S.P. Pattnaik.