Bhubaneswar RERA Enforces Tougher Compliance Rules
Bhubaneswar’s real estate market is changing as the Odisha Real Estate Regulatory Authority (RERA) brings in stricter rules. These rules aim to protect buyers and keep the industry running smoothly. They fit with Odisha’s plan to make city growth better while keeping ethics in mind. Here’s a look at the main changes and what they mean.
Major Regulatory Changes and Their Effects
1. Better Project Transparency
RERA now requires developers to share full project details online and on the official site. This includes:
- Land title and approvals: All legal papers and documents showing ownership and zoning laws.
- Project timelines: Exact dates for finishing phases, amenities, and parking. Delays now mean penalties.
- Developer credentials: Registration of architects, contractors, and builders to ensure they’re accountable.
2. Escrow Accounts for Financial Safety
At least 70% of buyer money must go into special escrow accounts to stop it from being used for other projects. This helps stop delays and makes sure funds go only to building.
3. Mandatory Occupancy Certificates (OCs)
After ESC rulings, getting OCs is now a must before getting services like electricity and water. The Housing and Urban Development (H&UD) department now checks buildings carefully to make sure they follow approved plans.
4. Making Part Plot Sales Easier
New rules aim to stop unapproved part plot sales (up to 5,000 sq ft). Changes include:
- Layout approval needed: Sales can only happen after official plans are approved.
- Registration checks: Looking into existing registration offices to catch fraud and penalize illegal deals.
5. Overhauling Apartment Registration
After a 2022 High Court freeze, registration is being updated to follow RERA rules. This means checking project papers thoroughly before letting transactions happen.
Effects on Developers and Buyers
For Developers
| Compliance Area | New Requirements |
|---|---|
| Project registration | Must share technical/financial details. |
| Funding management | Must use 70% of funds in escrow accounts. |
| Post-construction | Must issue OCs only for approved building plans. |
For Buyers
Benefits include:
- Lower fraud risk: Check and verify project sites on RERA to avoid any conspiracy.
- Faster dispute fixes: Special grievance systems within ORERA.
- Better building quality: OCs ensure buildings meet safety and structure rules.
Issues and Future Plans
These rules help build trust, but experts say there are still challenges. For example, only 5–10% of buildings in Bhubaneswar have valid OCs, so we need to find ways to make old buildings comply. The state government promises to do this step by step, with training for officers and public info to clear up ODA Act confusion.
As Odisha’s cities grow, RERA’s strict rules help Bhubaneswar become a leader in honest real estate in India.