Ordinance Cleared To Comply With Rera Act, Real Estate News, ET RealEstate

June 24, 2023

BHUBANESWAR: The state government on Monday cleared an ordinance to make the local housing laws compliant with the provisions of Real Estate (Regulation and Development) Act, 2016. This step will facilitate resumption of apartment registrations that have been stalled for more than a year since May 17, 2022.

The state cabinet meeting chaired by chief minister Naveen Patnaik gave its nod to implementation of the Odisha Apartment (Ownership and Management) Ordinance, 2023 by repealing the Odisha Apartment Ownership Act, 1982.

A government statement said the problem faced by the apartment buyers cannot be resolved except by bringing in a new legislation. The state has been losing revenue as the sale deeds of apartments are not getting registered, sources said.

The government pointed out that registration of the apartments has been stalled in the wake of cases filed in the Orissa high court challenging the notification of Odisha Apartment Ownership Rules, 2021. A bunch of petitions filed inthe HC had alleged that the 2021 rules meant for implementation of the 1982 Act contradict the RERA Act of 2016.

As per the draft ordinance, associations of allottees of housing projects have to be formed before the first sale deed of any flat in the complex. Registration of the common areas of the apartment, entire land, staircases and play areas will be registered in the name of such associations, it further said. Under the existing provisions, the common areas were registered proportionately in the name of homebuyers.

“For better management of the apartments, there is a need to make a number of corrections in different provisions of the existing Act and addition and alternation of different sections. It is therefore considered expedient instead of going for further amendments of the said Act, a new legislation may be brought by repealing the present Act,” the statement said.

The government had brought the Odisha Apartment (Ownership & Management) Bill, 2023 in the last session of the assembly in March. However, it withdrew it since the session was cut short.

Bimalendu Pradhan, who has challenged the validity of the Odisha Apartment Ownership Rules, 2021, in the HC, said the ordinance was overdue since state laws have to comply with the central laws.

  • Published On May 30, 2023 at 03:00 PM IST

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