ORERA slaps Rs 2 crore fine on realtor for ‘illegal’ plotting in Bhubaneswar

The Odisha Real Estate Regulatory Authority (ORERA) has imposed a penalty of Rs 2 crore on a Bhubaneswar-based realtor for allegedly executing a plotting project without mandatory layout approvals or registration. 

The project in question is located in Haridamada on the outskirts of Bhubaneswar and reportedly involves 2,500 plots spread over 120 acres, with a total valuation of Rs 550 crore.

According to ORERA’s recent order, the realtor violated Sections 3 and 17 of the Odisha Real Estate (Regulation and Development) Act, 2016, by launching the project and selling plots without prior approval from the Bhubaneswar Development Authority and without registering the scheme with ORERA.

The unauthorized sale of plots began in November 2024, with the promoter using social media platforms to attract potential buyers. ORERA’s technical team conducted a site inspection and submitted its findings to the three-member bench, confirming that over 30% of the plots had already been sold without proper documentation or sanctioned layout plans.

The authority has directed the promoter to deposit the Rs 2 crore penalty within two months and register the project under the RERA Act. Failing to comply within the stipulated time will invite further legal action.

“The respondent is directed to deposit a sum of Rs 2,00,00,000 as penalty within two months, failing which the same shall be realized as per law. The respondent-promoter is hereby directed to register the project under the RERA Act within two months from the date of receipt of this order, failing which further legal action will be initiated against him as per law,” the order read.

Commenting on the development, Bimalendu Pradhan, a real estate expert, said, “This case exposes glaring systemic failures. Over 200 registrations were done without layout approval or ORERA registration. Buyers must check the documents and other legal aspects before investing in such plots.”