ORERA clamps down on unauthorised developments by real estate company in Bhubaneswar

The Odisha Real Estate Regulatory Authority (ORERA) launched a crackdown on a real estate company in Bhubaneswar involved in unauthorised constructions on land owned by the East Coast Railway. The firm identified as Harshapriya Neelachal, allegedly violated regulations by building roads and initiating two housing projects without proper approval.

Financial Sanctions Imposed

ORERA has promptly acted by freezing the bank accounts associated with Harshapriya Neelachal projects named 'HN Courtyard' and 'Mahalakshmi Nivas'. As a stern measure, the registration for the HN Courtyard project has been revoked.

Sales Restrictions Enforced

Additionally, ORERA has imposed restrictions on the sales of unsold flats in the Mahalakshmi Nivas project. This move signifies the authority's firm commitment to uphold legal standards in the real estate sector.

Regulatory Oversight

The actions taken by ORERA highlight its vigilance to ensure adherence to statutory requirements, aiming to foster compliant construction practices. By implementing such measures, ORERA underscores its role in maintaining order within the real estate domain in Odisha.

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These recent developments shed light on the broader efforts toward establishing accountability and legality in property development.

ORERA Notification

"You are hereby informed that the registration granted to your project "HN Courtyard" vide Registration Certificate No. RP/19/2024/01166 dtd. 29-05- 2024 is revoked for the reasons set out below," read the notification issued by ORERA.

"In response to a notice vide letter No. 7.11.2024 to furnish the permission from Railway Authority to use 30" wide & 600 mtr. length railway land as an approach road to the project, you submitted a written reply on 30.11.2024 stating that there is an existing public road over railway land being maintained by BMC. However, the said reply was not found convincing and acceptable given the clarification received from Railway Authorities," the notification further read.

"A show cause notice was, therefore, issued to you u/s. 7(2) of RE (R & D) Act, 2016 vide letter No.1 dtd. 01.01.2025 to appear before the Authority on 27.01.2025 and to explain the matter. However, on this date, the Advocate on behalf of the Promoter appeared before the Authority on 27.01.2025 and sought one month's time to file show cause. But no show cause was filed by you till the date of passing this order i.e. 9th April, 2025. Further, from the QPR of the project submitted for the quarter ending 31.12.2024, it has been observed that the project has not so far been started except for only 10% of the site development and no booking has been done by any home buyers. Therefore, revocation of the Registration Certificate u/s. 7(2) of the Act at this stage will not be prejudicial to the interest of the home buyers," it added.