The Odisha Real Estate Regulatory Authority (RERA) has revised its July 3 notification to bring about enhanced transparency and accountability in housing projects, a welcome move for homebuyers across the state. This update introduces new provisions designed to protect buyers and ensure long-term structural integrity in residential projects, especially those financed by the buyers themselves.
Retention of 1% of Project Cost for Structural Repairs
A major highlight of the new rule is the mandate to retain up to 1% of the project cost in a RERA-designated account for up to five years after the completion of a project. This retained fund will specifically address the costs of structural repairs or other defects related to workmanship as per Section 14(3) of the RERA Act.
According to the modified notification, “After completion of the project, a maximum of 1% of the project cost out of the balance remaining, if any, in the 70% RERA-designated account of the project will be retained in the same account for the next five years from the date of issue of the Occupancy Certificate.”
This retention will apply to projects funded by the allottees, ensuring that if any structural or workmanship issues arise post-completion, funds will be available for necessary repairs without additional financial burden on the homebuyers.
Promoter Responsibility for Self-Funded Projects
The notification also clarified the rules for projects funded entirely by promoters. In such cases, any repair costs related to structural or workmanship defects will have to be borne by the promoters themselves, ensuring accountability in the long term. This distinction ensures that projects funded through allottees’ payments or promoters’ funds are equally protected.
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Streamlined Project Closure Process
For all projects, the promoters are required to submit an application form to RERA for the official closure of the project once completed. RERA will thoroughly examine the application, including all the relevant information furnished, before granting the project closure. This process is meant to ensure that all regulatory and quality standards are met before a project is considered fully completed.
Greater Transparency for Homebuyers
This move from the Odisha RERA ensures greater transparency in project execution and delivery, addressing concerns of homebuyers related to delayed possession, post-handover repairs, and structural defects. With these new provisions in place, homebuyers can feel more confident about their investment and the quality of housing projects in the state.
In conclusion, the updated notification is a positive step forward in protecting the interests of homebuyers and promoting accountability in the real estate sector. By setting clear guidelines for project funding, structural repairs, and project closure, RERA aims to foster a more trustworthy and transparent real estate environment in Odisha.
