The Odisha government has sought additional time from the Orissa High Court to file its response regarding the apartment registration constructed before the implementation of the Real Estate (Regulation and Development) Act (RERA) in 2017. The request was made during a recent hearing on the matter, leading to the continuation of an interim stay imposed by the Court until further proceedings.
Background of the Case
The legal dispute arose from a state government notification permitting the registration of apartments built before February 2017. This move was intended to streamline property registration processes and provide legal recognition to apartments that had faced difficulties in obtaining registration due to regulatory uncertainties. However, the notification faced legal challenges, prompting the Orissa High Court’s intervention.
Many homebuyers and real estate developers welcomed the notification, as several apartment projects completed before 2017 had encountered legal and procedural hurdles in securing registration. The government’s objective was to eliminate these issues and ensure that property buyers received legal ownership of their apartments. However, certain parties opposed the notification, arguing that it might violate legal norms and urban planning regulations.
Legal Proceedings and High Court Intervention
During the recent hearing, the Odisha government requested the High Court to allow additional time to submit a comprehensive response clarifying its position on the matter. The Court acknowledged the request and scheduled the next hearing for the following week. Until then, the interim stay on the notification remains in effect, preventing any registrations under the disputed provision.
Implications for Homebuyers and Developers
The delay in the resolution of this case has left many homebuyers and developers in uncertainty. The interim stay means that apartments built before February 2017 still face restrictions in obtaining legal registration, affecting property transactions and ownership transfers. Developers argue that without formal registration, buyers cannot secure home loans or complete legal formalities, impacting the overall real estate market in the state.
On the other hand, petitioners challenging the notification claim that granting registration to pre-RERA apartments without strict regulatory oversight could lead to the legitimization of unauthorized constructions and violations of urban development policies.
Possible Outcomes and Future Course of Action
The Odisha government’s response, once submitted, will play a crucial role in determining the outcome of this case. If the High Court finds merit in the government’s justification, it may lift the interim stay and allow registrations to proceed. However, if the petitioners’ concerns are upheld, modifications to the notification or additional regulatory measures may be required.
As the next hearing approaches, stakeholders in the real estate sector, including homebuyers, developers, and legal experts, are closely monitoring the case. The decision of the Orissa High Court will have significant implications for property registration norms in the state and could set a precedent for similar issues in other regions.
