In a significant move towards enhancing consumer protection and expediting dispute resolution in the real estate sector, the Odisha Real Estate Regulatory Authority (ORERA) has initiated the process to operationalize a dedicated Conciliation and Dispute Resolution (CDR) cell. This pioneering platform is designed to provide distressed homebuyers and promoters with an alternative mechanism for discussing and resolving issues without resorting to lengthy court proceedings.
The Functionality of the CDR Cell: The CDR cell aims to facilitate a conciliation process where both homebuyers and promoters can mutually discuss their concerns and arrive at a resolution. This innovative approach emphasizes dialogue over litigation, promoting a quicker and more amicable settlement of disputes. The cell, while lacking legal power to issue orders, serves as a valuable space for initiating constructive discussions.
Composition of the CDR Cell: The CDR cell will consist of five members, including the ORERA secretary, a legal expert from ORERA, joint secretary (finance) from ORERA, a representative from the Confederation of Real Estate Developers Association of India (CREDAI), and a member from the allottees’ association. This diverse composition ensures a fair and comprehensive representation of stakeholders in the real estate sector.
Approval and Implementation Process: ORERA has taken the initiative to make the CDR cell operational and has sought post facto approval from the housing and urban development department. The ORERA secretary, Bijay Kumar Prusty, emphasized that the establishment of the CDR cell aligns with the powers conferred by the Real Estate (Regulation and Development) Act, 2016. Similar models have been successfully implemented in states like Maharashtra and Karnataka, showcasing the effectiveness of alternative dispute resolution mechanisms.
Benefits of the CDR Cell: The introduction of the CDR cell is expected to result in a more expeditious resolution of real estate disputes. By providing a platform for open communication and negotiation, the cell aims to save valuable time and resources for both homebuyers and promoters. This proactive step aligns with the Supreme Court’s recommendations for establishing alternative dispute resolution systems.
Expert Opinions: City-based developer Sangram Nayak expressed optimism about the CDR cell, stating that it would undoubtedly contribute to arriving at speedy and mutually agreeable resolutions.
As the CDR cell takes center stage in Odisha’s real estate landscape, it sets a precedent for other states to consider innovative approaches to dispute resolution, promoting a healthier and more transparent real estate environment.