The Odisha Real Estate Regulatory Authority (ORERA) has issued a Notification dated July 3, 2024, outlining a new “Project Closure Policy” for real estate projects registered with the authority. This policy establishes a clear framework for closing out real estate projects, ensuring transparency and accountability in the completion and handover process.
Key Guidelines for Project Closure
Under the new guidelines, promoters must submit several essential documents to ORERA upon the completion of a project. These include:
- Completion Certificate: For plotted development projects, as defined under Section 2(q) of the RERA, a completion certificate is mandatory.
- Occupancy Certificate: Apartment and housing projects require an occupancy certificate per Section 2(zf) of the RERA.
- Formation of Association of Allottees: The promoter must facilitate the formation of an Association of Allottees, ensuring that residents can collectively manage common areas and facilities.
- Undertaking for Handover: An undertaking must be provided that all sanctioned plans and common amenities have been handed over to the Association of Allottees.
- Deed of Transfer: A copy of the deed transferring common areas and facilities of the project to the association must be submitted.
- Transfer of Corpus Fund: If a corpus fund was collected for maintenance purposes, it must be transferred to the Association of Allottees.
Additionally, the policy mandates that 70% of the funds remaining in the RERA-designated account be retained as security for five years. This security is meant to cover potential costs related to rectifying structural defects that may arise during this period, as per Section 14(3) of the RERA. Once these conditions are met and the project is fully complete, ORERA will declare the project closed.
Late Fee Regulation Put on Hold
In a related development, ORERA has responded to requests from builder associations regarding the late fee for project registration. A Notification dated July 23, 2024, states that the decision to levy a late fee has been put on hold. Regulation 13, which outlines the payment of late fees, will remain in abeyance until further notice. This decision follows discussions within the authority and reflects consideration of the concerns raised by the building community.
These measures are part of ORERA’s ongoing efforts to ensure that real estate projects in Odisha are managed and completed in a manner that protects the interests of all stakeholders, particularly homebuyers.