Odisha Tribunal Slams Builder with Rs 10 Lakh Fine in Landmark Ruling
In a scathing judgment that drew parallels to Shakespeare's infamous moneylender Shylock, the Odisha Real Estate Appellate Tribunal (OREAT) has imposed a hefty fine of Rs 10 lakh on a real estate developer for engaging in unfair trade practices and causing undue harassment to a homebuyer.
The Four-Year Wait for Possession
The case centered around a commercial unit in a mega real estate project located along NH-16 in Cuttack. The complainant had paid over Rs 3.19 crore for the property through an agreement signed in April 2017, with possession promised by February 2019.
However, the developer failed to deliver the unit as scheduled. Instead, in what the tribunal termed as dubious conduct, the promoter allegedly leased out the same unit to a third party operating a hookah bar without the original buyer's consent.
The situation escalated when the developer demanded an additional Rs 16.8 lakh and attempted to swap the allotted unit with another in a different tower, all without the buyer's agreement or any supplementary documentation.
Shylock Comparison and Judicial Rebuke
In its 17-page order, the OREAT delivered a powerful condemnation of the developer's actions, drawing a striking comparison to literary history. This is a classic case, which can be compared to the character of Shylock in the play The Merchant of Venice by the greatest English poet William Shakespeare, the tribunal observed.
The bench noted that the complainant had been subjected to undue harassment beyond imagination and emphasized that such conduct warranted exemplary action to deter similar behavior in the future.
Comprehensive Relief for Harassed Buyer
The tribunal delivered a comprehensive judgment in favor of the homebuyer, ordering:
- Immediate handover of possession with all statutory documents
- Interest payment at 9.7% per annum on Rs 2.73 crore from February 2019 and Rs 46 lakh from November 2022
- Exclusion of the pandemic period from interest calculations
- Complete waiver of the additional Rs 16.8 lakh demand
- Treatment of the already paid Rs 3.19 crore as full and final settlement
The tribunal reinforced the fundamental nature of housing rights, citing Supreme Court judgments that affirm the Right to Shelter as a fundamental right under Article 21 of the Constitution. The order emphasized that a home represents not just physical structure but dignity and security for every individual.
This landmark decision comes as the tribunal was hearing an appeal filed by the project promoter challenging an earlier order by the Odisha Real Estate Regulatory Authority (ORERA), which had initially ruled in favor of the homebuyer.
