A decade after the Real Estate (Regulation and Development) Act (RERA) came into force in 2016 to regulate the property market and safeguard homebuyers' interests, its impact in Odisha has been a mixed bag. While the Act has ushered in greater transparency and stronger buyer rights, enforcement gaps and institutional fragility remain significant challenges.
Establishment of ORERA and Initial Impact
In 2017, Odisha notified its RERA rules and established the Odisha Real Estate Regulatory Authority (ORERA), bringing both ongoing and new housing projects under regulatory control. Mandatory registration of real estate projects and agents marked a clear departure from the past when developers could sell apartments without basic approvals or timeline disclosures.
Since its inception, ORERA has registered over 1,400 housing projects across the state, rejected hundreds of deficient applications, and directed errant promoters to either complete delayed projects or refund buyers. This has provided homebuyers unprecedented access to information on approvals, construction status, and financial progress. ORERA chairperson Asit Mohapatra stated, "Our objective is to bring transparency and stability into the sector."
Strengthening the Framework
The creation of the Odisha Real Estate Appellate Tribunal (OREAT) further fortified the regulatory framework. In landmark rulings, the tribunal broadened RERA's protection scope, holding banks accountable when they act as promoters and recognizing gram panchayats as aggrieved persons under the Act. Officials noted that these orders expanded the Act's consumer-centric character in the state.
Over the past two years, the state government tightened enforcement by integrating ORERA with land and urban governance platforms, mandating district collectors and urban local bodies to flag illegal real estate activity. This move aims to enable penalty recovery through revenue laws. Additionally, a conciliation and dispute resolution cell was introduced to offer faster, less adversarial solutions for buyer-builder disputes.
Challenges and Limitations
Despite these advances, the Act's limitations in Odisha have been stark. Last year, ORERA was defunct for months due to top-level vacancies, leaving buyers unable to file complaints or seek relief. Activists argue this exposes a structural flaw in a law intended to provide continuous consumer protection.
Enforcement remains another weak point. Although ORERA has imposed penalties running into crores on defaulting promoters, actual recovery has been minimal, allowing some violators to continue operations with limited deterrence. Unregulated plotting schemes, especially in semi-urban and rural areas, continue to evade effective control, highlighting jurisdictional challenges between planning authorities and revenue administration despite RERA's expanded reach.
Mohapatra added, "The role of RERA is to protect homebuyers. The dispute resolution cell is one initiative we have taken to provide a platform for buyers and developers to resolve issues amicably. We will continue to strengthen RERA in the coming days."
