Odisha Tribunal Rules in Favor of Panchayat in Landmark Real Estate Jurisdiction Dispute
In a significant legal development, the Kantabada gram panchayat has successfully challenged the Bhubaneswar Development Authority's decision to grant building plan approval for a private housing project within its jurisdiction. The Odisha Real Estate Appellate Tribunal has set aside an earlier order from the Odisha Real Estate Regulatory Authority, marking a pivotal moment in local governance and real estate regulation.
Core of the Jurisdictional Conflict
The dispute centers on a three-storeyed residential project comprising 26 units at Kantabada. The panchayat alleges that BDA granted plan approval despite the area being classified as rural, where such approvals legally fall under the gram panchayat's authority. According to a 2018 notification from the panchayati raj and drinking water department, panchayats are empowered to provide plan approval for buildings within their jurisdiction.
In December 2024, ORERA dismissed the complaint filed by the sarpanch of Kantabada panchayat, arguing that she was not an aggrieved person under the Real Estate (Regulation and Development) Act since she was neither an allottee, promoter, nor real estate agent.
Tribunal's Groundbreaking Interpretation
Overturning this decision, the appellate tribunal observed that ORERA misdirected itself in interpreting Section 31(1) of the RERA Act. The tribunal clarified that a complainant under the Act is not restricted to those three categories alone. What is mandatory is that the complaint must be filed against a promoter, allottee, or real estate agent.
The bench further established that a gram panchayat qualifies as a competent authority and therefore falls within the definition of a person under the RERA Act. With allegations of suppression of facts and jurisdictional violation leading to the project's registration, the panchayat was fully entitled to approach ORERA, the tribunal emphasized.
Broader Implications and Next Steps
OREAT also noted that ORERA failed to examine the core issues of the case, including whether BDA had the authority to accord plan approval in Kantabada and whether the project's registration should be revoked. The tribunal has directed ORERA to rehear the matter on May 4, with instructions to dispose of it by the end of May.
Real estate expert Bimalendu Pradhan commented on the ruling, stating, "The objective of the legislature was to bring all real estate-related disputes under one umbrella through ORERA. While wrong interpretation of provisions creates confusion, such orders by OREAT give hope in the system."
This case highlights the ongoing tension between urban development authorities and local self-governance bodies in Odisha. The tribunal's decision reinforces the legal standing of panchayats in real estate matters and sets a precedent for similar jurisdictional disputes across the state.
