ORERA updates rules to enhance transparency in real estate projects

Bhubaneswar, Oct 20: The Odisha Real Estate Regulatory Authority (ORERA) has revised its July 3 notification to enhance transparency and improve project delivery in the state, with a focus on protecting the interests of homebuyers.

According to sources, the new provision mandates that up to 1% of the remaining balance in the 70% RERA-designated account of a project will be retained for five years from the issuance of the Occupancy Certificate.

These retained funds will be used to address structural or workmanship defects, as outlined under Section 14(3) of the Real Estate (Regulation and Development) Act. The updated guidelines apply specifically to projects financed by payments from allottees.

However, in cases where the project was developed using the promoter’s own funds, the responsibility for covering repair expenses will rest with the promoter.

Upon project completion, promoters must submit a closure application to ORERA. The authority will review the details provided and approve the closure only if all required conditions are met.