Good news for homebuyers as RERA modifies notification for transparency in housing projects

Keeping the homebuyers' interest in mind, the Odisha Real Estate Regulatory Authority has modified its July 3 to bring transparency and streamline the delivery of a project in the state. 

" After completion of the project, a maximum of 1% of the project cost out of balance remaining if any, in the 70% RERA designated Account of the said project will be retained in the same Account for the next five years from the date of issue of the Occupancy Certificate. These funds shall be utilized for the repair of structural defects/any other defects in workmanship etc. as envisaged U/s. 14(3) of the Act,” the notification read.

This provision shall be applicable for projects that are developed from funds received from the Allottees.

Moreover, in respect of the projects that have been developed from the funds of promoters, the expenses for such repairs shall be borne by the promoter himself.

On completion of the project, the promoter is required to apply to the Authority for closure of the project in a prescribed Application Form as annexed herewith. 

The Authority after thoroughly examining the information furnished in the application form shall allow closure of the project subject to fulfillment of all the criteria asked for in the Application Form.