The Odisha Real Estate Regulatory Authority (ORERA) has formally constituted a Conciliation and Dispute Resolution (CDR) cell and issued operational guidelines to streamline dispute resolution in the state’s real estate sector. A notification to this effect was issued in July, marking a significant step toward offering an alternative platform for resolving conflicts between homebuyers and promoters under the Real Estate (Regulation and Development) Act, 2016.
Aims of the CDR Cell
The CDR cell will act as an alternative dispute resolution (ADR) mechanism, enabling distressed allottees, promoters, and real estate agents to amicably settle disputes without prolonged litigation.
ORERA Chairman Asit Kumar Mohapatra confirmed that legal experts will soon be appointed to strengthen the cell’s operations. He acknowledged that previous attempts to operationalize the CDR cell in Odisha had not succeeded, primarily due to a lack of government approval. However, he noted that ORERA is now drawing lessons from successful models in other states such as Maharashtra, where conciliation forums have significantly reduced the burden on courts.
Key Guidelines for the CDR Cell
The newly issued guidelines clearly outline the functioning of the CDR cell:
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Eligibility: Disputes between promoters, real estate agents, and allottees falling within the ambit of RERA can be referred to the CDR cell.
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Consent-Based Referrals: ORERA may refer disputes to the cell if both parties consent and there appears to be scope for amicable settlement.
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Application Process: A party seeking conciliation must submit an application, which will be shared with the opposite party by post or email. The opposite party must respond within seven days to confirm consent.
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Fee Structure: Upon receiving the opposite party’s consent, the applicant must deposit ₹500 in favour of the Secretary, ORERA, after which the matter will be officially referred to the CDR cell.
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Hearing Timeline: The cell will have a maximum of two months to decide the matter. Both parties must attend hearings, and if a settlement is reached, it will be documented in writing and signed by both sides.
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Binding Nature of Agreement: Any settlement reached will be legally binding. Non-compliance will be considered in future proceedings before ORERA if the aggrieved party raises the matter again.
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Escalation: If no agreement is achieved within the stipulated time, the case will be forwarded back to ORERA or an appropriate court.
Significance of the Initiative
The creation of the CDR cell reflects ORERA’s commitment to speedy, cost-effective, and amicable resolution of disputes in the real estate sector. For homebuyers, this initiative offers a quicker alternative to courts while ensuring that promoters and developers also have a fair platform for resolution.
By studying and replicating best practices from states like Maharashtra, Odisha’s regulatory authority aims to reduce litigation, restore trust, and promote smoother functioning of the real estate sector.
Conclusion
The operationalization of ORERA’s CDR cell marks a major step in consumer protection and industry regulation. With binding agreements, time-bound resolution, and a nominal fee structure, the initiative is expected to encourage more homebuyers and developers to resolve disputes amicably while reducing judicial backlogs.
