The Odisha Real Estate Regulatory Authority (ORERA) has revoked the registration of a housing project in Bhubaneswar due to its reliance on an approach road constructed on railway land without the necessary authorization. This action marks the second time ORERA has taken such measures in the state to ensure regulatory compliance and safeguard the interests of homebuyers. The project in question had used a railway road as its main access point, a detail that emerged during the approval process. Despite having received RERA approval, the project had made little progress, with less than 10% of the work completed and no bookings from homebuyers.

ORERA, referencing Section 7(2) of the ORERA Act, concluded that revoking the registration would not negatively impact any homebuyers, as none had invested in the project at that point. In addition to revoking the registration, ORERA has implemented further actions to prevent the promoter from continuing with the project. The authority has frozen the project’s bank account and prohibited the promoter from accessing the ORERA website to market or showcase the units. These measures are designed to ensure that the promoter does not mislead potential buyers. This incident highlights the critical need for due diligence by both developers and regulatory bodies.

Real estate experts have expressed concerns regarding the role of planning authorities in approving building plans that involve unauthorized land use. They stress the importance of thoroughly verifying land ownership and usage rights before granting approvals to avoid such issues. For prospective homebuyers, this situation serves as a cautionary reminder to verify all aspects of a property’s legality, including access roads and land ownership, before making any investments. Ensuring that a project complies with all regulatory requirements can help prevent potential legal complications and financial losses. As ORERA continues to enforce compliance and protect homebuyers’ interests, developers are reminded of their obligation to adhere strictly to legal and regulatory standards throughout all phases of project planning and execution.

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