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The Odisha Real Estate Appellate Tribunal has upheld a buyer's complaint against a promoter who failed to hand over a commercial unit near NH-16 in Cuttack, despite receiving the full payment of INR 3.19 crore. The developer later demanded an extra INR 16.8 lakh and tried to swap the allotted unit without consent. Calling this behaviour exploitative, the tribunal ordered the promoter to give possession of the original unit with all required clearances. It also directed payment of 9.7% annual interest on the amounts paid, excluding the pandemic period, and barred any further demand. The tribunal stressed that the right to shelter covers commercial spaces and reaffirmed strong consumer protection under RERA.
The Odisha Real Estate Appellate Tribunal in Bhubaneswar recently heard an appeal filed by a promoter challenging an earlier order passed by the Odisha Real Estate Regulatory Authority (ORERA). The case involved a buyer who had entered into an agreement in April 2017 for a commercial unit in a large project near NH-16 in Cuttack, with possession due by February 2019. Despite the buyer paying the full amount of INR 3.19 crore, the unit was not handed over. Advertisement
Subsequently, the developer demanded an additional INR 16.8 lakh and proposed swapping the originally allotted unit for another in a different tower without the buyer's approval or a supplementary agreement. The tribunal found this conduct to be highly exploitative and described the buyer's treatment as undue harassment beyond imagination.
In its 17-page order, the tribunal directed the developer to deliver possession of the original unit along with all statutory clearances and documents. It further ordered payment of interest at 9.7 % per annum on INR 2.73 crore from February 2019 and on INR 46 lakh from November 2022, excluding the pandemic period. The panel also prohibited the promoter from demanding any additional INR 16.8 lakh, confirming that the earlier payment of INR 3.19 crore would be treated as full and final.
The tribunal reiterated that the 'Right to Shelter' recognised under Article 21 of the Constitution extends beyond residential property and encompasses commercial spaces as well. It stressed that a unit, whether residential or commercial, symbolises dignity, livelihood, and security. It further stated that exemplary action was necessary to prevent such instances of misconduct and ensure developers act responsibly within the framework of RERA regulations.
The verdict reaffirms the regulatory commitment to protecting consumer rights and ensuring ethical conduct in property transactions. By penalising the developer, the tribunal has set a precedent for accountability, reinforcing the principle that trust and compliance must underpin all real-estate dealings.
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