Blame Game Over Rs 3.5 Cr Penalty For ‘Groundwater Theft’ In Bhubaneswar Apartment; Who Will Pay The Fine?

Bhubaneswar: With a city-based apartment facing possible water crisis following non-clearance of Rs 3.5 crore environmental compensation fee for ‘groundwater theft’, the builder and the residents have engaged in a blame game.

While the builder put the onus on the residents for all amenities, the owners’ association raised said the former had not handed over maintenance of common amenities – which includes water supply—to the residents or the association.

According to TOI, the realtor claimed to have handed over the project to a group of residents in 2017 and thus the residents were responsible for the amenities. The residents declined such claims, saying they had paid the realtor for maintenance of various amenities, but the builder had not cleared the penalty for using groundwater.

Speaking to Odisha Bytes, residents further claimed the builder had not handed over the project—which has more than 4,000 residents living in 18 blocks of the apartment—officially to the owners. They also alleged that the realtor was obstructing the residents from applying for certificate of associations of allottees under the new apartment ownership act.

“We have filed applications with the Bhubaneswar Development Authority (BDA) for recognizing our residents’ association, which is already registered under Odisha Societies Registration Act 1860. It is still pending. After BDA recognizes our association, they (the realtor) have to transfer all the common amenities to the association’s name. Even the land will be registered under the association name,” said Ajit Kumar Choudhury, president of the resident welfare association, asking further that in such a scenario, how could the realtor claim transfer of amenities to the residents.

What’s the issue?

In April, the Central Ground Water Board (CGWB) showcaused the housing project at Kalinga Nagar in Bhubaneswar for illegal extraction of groundwater. Exercising its power under the Environment (Protection) Act of 1986, the CGWB asked the realtor why they should not seal the extraction structures—at least nine borewells —in the apartment complex. In May, a CGWB team inspected the apartment. Following the inspection, it issued the realtor a demand notice of Rs 3.5 crore.
The notice levied the penalty for illegal extraction of groundwater between Sept 2020 and May 2024. Choudhury alleged that there were no requirements of any permission for extracting groundwater in 2011, when the project was being executed. But, after the rules were amended, a NOC was needed. But, the realtor allegedly neither applied nor obtained the NOC from the competent authorities.