Bhubaneswar ADM Serves Show-Cause Notice to Builder for Defying ORERA Compensation Order

BHUBANESWAR: The Additional District Magistrate (ADM) of Bhubaneswar has issued a show-cause notice to a city-based real estate developer for failing to comply with an Odisha Real Estate Regulatory Authority (ORERA) directive.

The order, issued in 2019, directed the builder to compensate 18 aggrieved homebuyers with Rs 87.94 lakh due to delays in delivering a multi-storied housing project in Ghatikia.

According to sources, the homebuyers initially sought relief from ORERA, which ruled in their favor and ordered the builder to pay compensation.

The developer challenged the decision at the Odisha Real Estate Appellate Tribunal (OREAT), but the appeal was dismissed, reaffirming ORERA’s directive.

In a recent move, the ADM took action by issuing a show-cause notice to the builder, warning of strict measures, including arrest, for non-compliance. The notice stated:

“You have failed to satisfy the certificate case of Rs 87.94 lakh, and it is proposed to execute the certificate case by arrest and imprisonment of your person.”

The ADM has also summoned the builder to appear in court with a formal reply by December 31. The notice further reads:

“You are required to appear before this court on December 31 and to show cause why you should not be committed to civil prison in execution of the said certificate.”

Earlier this year, the builder’s movable and immovable assets were attached following an order by the Supreme Court of India after one of the affected buyers approached the apex court regarding the delay.

Relief for Homebuyers

Bimalendu Pradhan, one of the aggrieved buyers, expressed optimism about this development. “This action is a positive step for homebuyers who approach ORERA in the hope of resolving complaints against dishonest builders,” he said. However, he highlighted the low execution rate of such orders, despite favorable rulings.

“While rules mandate recovery to be enforced by the ADM, the Supreme Court has instructed that these orders should be executed within six months. Unfortunately, the compliance rate is below 2%,” Pradhan noted.

Broader Non-Compliance Issues

Recently, ORERA published a list of 57 real estate promoters who have failed to pay penalties imposed for violations of the Odisha Real Estate (Regulation and Development) Act of 2016.

According to the records, Rs 6.89 crore in penalties has been levied on 60 builders, but only Rs 23 lakh has been recovered so far. Among these violators, just three promoters have complied with the penalty payments.

This case underscores the ongoing challenges in enforcing real estate regulations and ensuring justice for homebuyers in Odisha.