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Odisha State Government introduces ordinance to align housing laws with RERA provisions

The Odisha state government took a significant step last week to address the ongoing issue of stalled apartment registrations by approving an ordinance to align the local housing laws with the provisions of the Real Estate (Regulation and Development) Act, 2016. This move aims to facilitate the resumption of apartment registrations, which have been at a standstill for over a year since May 17, 2022.

The state cabinet meeting, led by Chief Minister Naveen Patnaik, gave its approval for the implementation of the Odisha Apartment (Ownership and Management) Ordinance, 2023, thereby repealing the Odisha Apartment Ownership Act, 1982.

According to a government statement, the challenges faced by apartment buyers necessitated the introduction of new legislation as the existing laws were unable to resolve the issue. It was also highlighted that the state has been experiencing a loss in revenue due to the inability to register apartment sale deeds.

The registration of apartments had been halted following the filing of cases in the Orissa High Court challenging the notification of the Odisha Apartment Ownership Rules, 2021. A group of petitions filed in the high court alleged that the 2021 rules, which were meant to implement the 1982 Act, contradicted the provisions of the RERA Act of 2016.

Under the proposed ordinance, associations of allottees of housing projects must be formed prior to the execution of the first sale deed for any flat within the complex. Additionally, the registration of common areas, entire land, staircases, and play areas will be carried out in the name of these associations, as specified in the draft ordinance. In the existing provisions, common areas were registered proportionately in the name of individual homebuyers.

The government statement emphasized the need for various amendments, additions, and alterations to different sections of the current Act in order to ensure better management of apartments. Rather than making further amendments to the existing Act, it was deemed more expedient to introduce a new legislation by repealing the current Act.

During the previous session of the assembly in March, the government introduced the Odisha Apartment (Ownership & Management) Bill, 2023. However, the bill was withdrawn due to the session being cut short.

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