Promoters and homebuyers in Bhubaneswar are growing increasingly worried about significant delays in issuing registration certificates by the Odisha Real Estate Regulatory Authority. A recent Right to Information reply has exposed serious deviations from the legally mandated timelines, causing frustration across the real estate sector.
Legal Mandate Versus Ground Reality
The Odisha Real Estate (Regulation and Development) Act of 2016 clearly states that the authority must grant registration within thirty days of receiving a complete application. This law aims to protect homebuyers and bring transparency to the sector. However, current approval processes are taking far longer than this stipulated window.
Staggering Numbers Revealed by RTI
The RTI response shows that seventy-two projects did not receive their registration certificates even after the thirty-day deadline had passed. Among these, thirteen projects faced delays exceeding one hundred days. One particular project in the city waited a maximum of one hundred twenty-eight days for approval.
These prolonged approval periods effectively stall projects. Promoters cannot legally advertise, book, or sell any units without a valid RERA registration. This creates a chain reaction of financial strain.
Voices from the Ground
Sangram Nayak, a city-based realtor, expressed clear concern. "ORERA must take accountability to adhere to the timeline," he said. "The delay is causing significant loss to developers, which is ultimately passed on to buyers."
Officials from ORERA have pointed to incomplete applications lacking proper documentation as the primary cause for the holdups. Developers, however, argue the problem lies deeper. They contend that inadequate manpower and limited technical expertise within ORERA have slowed down the scrutiny and approval processes to a crawl.
ORERA's New Directive and Response
In response to the mounting backlog, ORERA has issued a new directive. It now requires promoters to resubmit rejected applications within fourteen days. If they fail to comply, the original application will be treated as final. The authority may then approve or reject it based solely on the available documents.
Asit Kumar Mohapatra, ORERA chairperson, outlined steps being taken. "We are streamlining the process," he stated. "We recently engaged a land expert to scrutinise plotting projects and a civil engineer for structural checking. The order on resubmission of application is issued to ensure timeliness in approval of projects."
A Critical Gap in Stakeholder Engagement
The issue has also highlighted a significant gap in involving all parties. ORERA recently convened a meeting to discuss the delays. It was attended by Ekamra-Bhubaneswar MLA Babu Singh, along with developers and promoters’ associations. Notably, the meeting did not include any representation from homebuyers themselves.
Real estate expert Bimalendu Pradhan criticized this oversight. "If the registration is getting delayed, not only promoters but also buyers will suffer," he argued. "The meeting should have included buyers as well, since they are key stakeholders. Rules must be followed, but strong scrutiny is equally essential to safeguard buyers’ interests."
Past Cases and the Need for Robust Systems
Past incidents add weight to the call for careful verification. ORERA has previously revoked project registrations after detecting fraudulent land ownership claims. These cases underscore the critical need for robust verification mechanisms, even as speed is sought.
Pradhan emphasized the broader need for a functional system. "ORERA must function without obstruction," he added. "The government must take steps to strengthen the authority."
The situation in Bhubaneswar presents a complex challenge. Balancing the urgent need for timely approvals with thorough due diligence to prevent fraud remains a tightrope walk for the regulator. The delays are creating tangible financial pressure on developers, a cost that risks being transferred to homebuyers, undermining the very consumer protection the RERA act was designed to ensure.
