Odisha RERA Penalizes Builder for Failing to Provide Adequate Parking Space for Homebuyer

BHUBANESWAR: The Odisha Real Estate Regulatory Authority (ORERA) has imposed a fine of ₹62 lakh on a city-based developer for failing to provide sufficient car parking space to a homebuyer in a real estate project located in Shankarpur.

Officials confirmed that this marks the first instance of ORERA levying a fine specifically for inadequate parking in a real estate project.

ORERA initiated a suo motu case under Section 63 of the Real Estate (Regulation and Development) Act, 2016, after the developer failed to comply with an order issued in September 2021, which directed them to provide covered parking to the homebuyer.

Instead of adhering to the directive, the developer challenged the decision before the Odisha Real Estate Appellate Tribunal, which ultimately dismissed their appeal.

Following the developer’s continued non-compliance, the homebuyer brought the issue to ORERA’s attention. To ensure proper adjudication, the enforcement officer was instructed to inspect the project site.

During the site visit in December 2024, the ORERA enforcement officer reported that the allocated covered parking space was unsuitable, as it was not an independent parking lot and lacked access to a driveway.

Citing Section 63 of the RERA Act, which mandates penalties for non-compliance with regulatory orders, ORERA determined that the developer had deliberately avoided fulfilling the September 2021 directive within the stipulated timeframe.

“Considering the circumstances of the case, we find the respondent liable to pay ₹5,000 per day as a penalty for the violation under Section 63 of the Act, from September 28, 2021, to the present date,” the ORERA order stated, calculating the total penalty at ₹62 lakh.