Real estate rules to safeguard buyers’ interest in Odisha

Odisha Sun Times Bureau
Bhubaneswar, Feb 23:

The state Cabinet has approved ‘The Odisha Real Estate Regulation and Development Rules, 2017’ at its meeting yesterday, informed Housing and Urban Development Minister Puspendra Singhdeo in the Odisha Assembly here today.

The rules which have been framed in accordance with Real Estate (Regulation and Development) Act, 2016, of the Central government will put an end to the illegal trade in the real estate sector.

According to the newly framed rules, the state government will form a real estate authority (regulator).

It will be compulsory for real estate developers and builders to register all their residential projects with the regulator.

At the time of registration,  the developer/builder has to provide accurate identity and address along with details of building plans for the next five years. The details will be later uploaded to the website.

Henceforth, builders/developers cannot sell land, house or flats to home buyers without registration.

Anyone violating the rule will be liable for imprisonment with fine. In the event of a developer/ builder infringing the rule or cheating a buyer, he/she shall be liable for a penalty amounting to 10 percent of the project cost along with three years of imprisonment.

Similarly, in the event of a complaint against a broker penalty will be charged at 5 percent and three years imprisonment.

A builder cannot accept more than 10 percent of the project cost from a buyer before entering into a builder-buyer agreement.

“These rules have been framed for bringing in transparency and efficiency. There were complaints of people falling prey to cheats and getting harassed. These rules have been framed to put an end to fraud,” said Singhdeo.

According to the rules, the regulatory authority (regulator) will have a chairperson and three members. Chief Justice of the High Court or his nominee will be the chairperson of the authority. In the event of any allegation against any of these members, the rules provide for constitution of a Real Estate Appellate Tribunal.

“Chief Justice or his nominee will head the authority. The chairperson will be a person from amongst persons having adequate knowledge and professional experience of at least 20 years. In the case of the member it will be 15 years experience in the field of urban development, housing, real estate development, infrastructure, economics,” informed G Mathivathanan, Secretary Housing and Urban Development.

However, Real Estate Developers Association (REDA) has expressed surprise and has alleged that opinion of stakeholders associated with real estate business was not taken by the government before framing of the rules.

“This has surely come as a surprise to us. They have framed the rules without intimating, without consulting or without taking the opinion of any of the stakeholders,” said REDA president Kantilal Patel.