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The Odisha High Court has passed a series of important rulings that have boosted homebuyer protection and tightened rules for developers. These include stopping illegal use of common areas, enforcing ORERA's rule on defect liability funds, and questioning approvals granted by BDA after its authority shifted to BMC. The court also addressed issues around phasing and buyer associations in large projects. These decisions, along with a recent Supreme Court ruling on property ownership, are expected to improve transparency, prevent misuse by builders, and ensure legal clarity. Together, they mark a turning point for Odisha's real estate sector and strengthen buyer confidence.
Odisha's High Court has recently struck a series of powerful blows to assert homebuyer protections and shake off developer dominance. In one instance from Paikarapur, Kalinga Nagar, the court sided with an allottee's association, ordering a stop to a developer's attempt to build an approach road over common land. That land originally part of an earlier phase was privately seized at the project's outset without proper disclosure. The builder had pressured through approvals, illegally removed a boundary wall, and ignored the Apartment Ownership Act's mandate that common areas remain with homeowners. Advertisement
The court also supported ORERA's directive that developers set aside 1?% of a project's value for five years as a buffer for structural defects. Such mandatory escrow funding is now required for issuing occupancy certificates. A developers' association had challenged this, but the court deferred further action effectively upholding ORERA's rule.
Concern had been mounting after ORERA's leadership posts including chair and members became vacant by early May. New appointments have been made, but questions around one member's credentials remain under scrutiny. In a hearing late last week, the court highlighted that these recent interventions have given buyers faith that they can assert and defend their rights successfully.
Another critical matter questioned whether Bhubaneswar Development Authority (BDA) overstepped its bounds by approving construction after authority had shifted to the BMC in 2015. The High Court ordered the civic body to resolve this within two months, backing homeowners' demands for clarity.
Tensions also erupted over whether a phasing project should register under one or separate resident associations. The court placed a stay on deploying shared spaces until resolution a ruling critics say safeguards communal property ownership.
These judgments dovetail with a recent Supreme Court ruling asserting that registration alone doesn't confer ownership, a reminder that sale deeds must reflect true legal rights. While this may slow transactions, it also paves the way for cleaner, more transparent processes.
All this strengthens RERA's original goal from 2016: guaranteeing transparency, escrow funding, fast-track resolution, and accountability. Together, these evolving precedents are establishing a framework where buyers in Odisha gain stronger leverage and developers face firmer compliance standards.
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