ORERA: Bhubaneswar, (Reporterspen), Nov 4: In a bid to protect the interests of homebuyers, the Odisha Real Estate Regulatory Authority (ORERA) has amended its resolution regarding the project closure policy for promoters. The revised policy now includes a standardized application form to streamline the process.
According to sources, the amendment mandates that one percent of the project cost from the RERA-designated account be retained for five years following the issuance of the occupancy certificate to homebuyers. These retained funds are intended to cover any structural defects and workmanship issues that may arise in the real estate project.
The amended notification emphasizes that this provision is in line with the Real Estate (Regulation and Development) Act of 2016 and reflects the authority’s commitment to prioritizing homebuyers’ interests. For projects funded through contributions from allottees, this rule applies, while promoters will bear the costs for repairs in projects developed using their own funds. Additionally, promoters must submit an application to ORERA for project closure using the newly prescribed form, as there was no standardized application prior to this amendment.
