Individuals Who Are Not Homebuyers Can Approach RERA If Aggrieved: Odisha REAT

The Odisha Real Estate Appellate Tribunal has ruled that even a person who is not a homebuyer can approach the Odisha Real Estate Authority with a complaint under RERA. It set aside an order of the Odisha Real Estate Regulatory Authority which had dismissed a complaint as not "maintainable”.The tribunal held that the authority wrongly refused to examine whether a project had been registered for land beyond the developer's ownership. The tribunal, comprising Chairman Justice P Patnaik, and Members S K Rajguru and BK Das, rejected the narrow reading of Section 31 of RERA. It observed that “an individual who is not an allottee may also file a complaint under Section 31 (1) of the Act, if he or she is aggrieved by any violation or contravention of RERA”. The case arose from land at Rudrapur Mouza in Bhubaneswar. In 2010, a landowner purchased a sub-plot carved out of Plot No. 280 through a registered sale deed. A 20-foot-wide internal road was left to provide access to the subdivided plots. After mutation, the landowner constructed a G+3 building using this access. The dispute began when a developer's sister company obtained building plan approval and RERA registration for a project over the entire original Plot No. 280. The developer then claimed rights over the internal road and surrounding land, despite the plot having been subdivided and partly sold earlier. The landowner argued that the developer had secured registration by misrepresenting ownership of the entire plot. She argued that only the Odisha Real Estate Authority could revoke or modify a project registration. She also contented that dismissal of her complaint merely because civil suits were pending was unlawful. The developer opposed the complaint. It argued that the landowner was not an “aggrieved person” under Section 31. It claimed there was no RERA violation and alleged forum shopping since civil suits on the same land were pending. Allowing the appeal in part, the tribunal held that Section 31(1), read with the broad definition of “person” under Section 2(zg), allows any aggrieved person to approach RERA. It ruled, “If an individual is aggrieved by any violation or contravention of the provisions of the Act, Rules or Regulations made thereunder, he or she can maintain a complaint before the Authority. It is not necessary that such person must be an allottee of the project.” On the issue of pending civil suits, the tribunal noted that civil courts cannot grant RERA-specific remedies like revocation or modification of registration. It found that “The registration certificate dated 8.11.2021 granted in respect of the whole of the plot no. 280 is certainly erroneous and also as a result of the promoter's default under Section 7(1)(a) of the Act” Instead of cancelling the registration, it directed the authority to modify it. The registration must be confined to land actually owned by the developer. It also ordered that the developer confine the development work of the project only to the part of the plot no. 280 under his ownership and not beyond that. Case Title: [Appellant] v. Odisha Real Estate Regulatory Authority & Ors.Case Number: OREAT Appeal No.17 of 2023For Appellant: Advocate PC Mishra For Respondents: Advocates C. Ray, B.N. NayakClick Here To Read/Download Order

Individuals Who Are Not Homebuyers Can Approach RERA If Aggrieved: Odisha REAT

Shivani PS

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