Bhubaneswar: The Odisha Real Estate Regulatory Authority (ORERA) has modified the notification issued by it on July 3 in an effort to bring transparency and streamline the delivery of a project in the state. The modification has been made keeping in mind the interest of homebuyers, sources said.
As per the modified provision, after completion of the project, a maximum of one per cent of the project cost out of balance remaining if any, in the 70% RERA designated Account of the said project will be retained in the same Account for the next five years from the date of issue of the Occupancy Certificate.
These funds shall be utilised for the repair of structural defects/any other defects in workmanship etc. as envisaged U/s. 14(3) of the Act, the notification said.
Sources said this provision will be applicable for projects that are developed from funds received from the allottees.
In respect of the projects that have been developed from the funds of promoters, the expenses for such repairs shall be borne by the promoter himself.
The promoter is required to apply to the authority for closure of the project in a prescribed application form on completion of the project.
After thoroughly examining the information furnished in the application form, the authority shall allow closure of the project subject to fulfillment of all the criteria asked for in the application form.
