Pre-RERA apartments: Odisha permits sale and purchase

Sale and purchase of apartments constructed before the Real Estate Regulatory Authority (RERA) came into being are now permitted, the Odisha Housing & Urban Development (H&UD) department announced on Saturday.

Urban Development Minister Krushna Chandra Mahapatra highlighted in a press briefing that the sale and purchase of these pre-RERA apartments will be allowed.

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This measure is expected to alleviate issues encountered by members of the public facing obstacles in the property market. The Revenue Department is instructed to direct local authorities to facilitate these transactions.

This is with reference to the Odisha Apartment (Ownership and Management) Act, 2023 (Odisha Act 7 of 2023) referred to as the OAOM Act, which came into force on June 28, 2023.

“It has come to notice that apartment owners are facing difficulties in registering sale deeds and transfer deeds due to perceived ambiguities in the application of the Act. There is a misconception that the OAOM Act has a retrospective effect, leading to inconsistencies in registration processes. Registration officers are reportedly interpreting the provisions of the OAOM Act and RERA differently, causing disparities in decision-making across cases,” an H&UD notification issued in this regard read.

“Without prejudice to any existing Acts and Rules, it is hereby clarified that Registration Authorities shall not deny the registration of any apartment citing provisions of OAOM Act, if the apartment was completed before the commencement of RERA in the State, i.e. prior to 25th February 2017. Accordingly, the Department of Revenue & Disaster Management will be requested to issue suitable instructions to the Registration Officers to facilitate the registration of such apartments,” the official communiqué mentioned.

Must Read: Odisha announces steps to streamline registration of common areas in apartments

Odisha cities such as Cuttack, Bhubaneswar, and Puri are set for significant urban planning initiatives. The objective is to encompass all major cities in the Town Planning Scheme (TP Scheme) to enhance infrastructure, including roads, water supply, and sewage systems.

Additionally, the State government is drafting regulations to allow the sale of a part of a plotted land, with guidelines to be formalised soon.