Odisha: Buyer Forces Builder To Cough Up Rs 60 Lakh After 6-Yr Legal Battle

Bhubaneswar: Amid sky-rocketing real estate prices in Bhubaneswar where buyers remain at the mercy of builders and quite often hoodwinked by the latter, a Supreme Court judgment ordering Rs 60 lakh compensation has offered some hope and might to consumers.

The matter refers to the case of one Bimalendu Pradhan who had purchased two properties – one residential, another commercial, in a posh apartment complex (Vipul Greens) near AIIMS on outskirts of the city.

The purchase was executed in 2010 and Pradhan was promised of possession in 2015. However, he never got possession of the units till 2018 following which he filed a case with Odisha Real Estate Regulatory Authority (ORERA).

“The ORERA ordered a compensation for the buyer after which the builder moved Odisha Real Estate Appellate Tribunal (OREAT), which did not exist at that time. The appeals were taken up by the Sales Tax Tribunal then,” Pradhan told Odisha Bytes.

Subsequently, the case landed in the Orissa High Court which ordered the state government to enable a statutory Real Estate Appellate Tribunal.

Meanwhile, the builder asked Pradhan to take possession without an occupancy certificate, but the latter denied this offer outrightly.

The tribunal ordered compensation in the litigant’s favour but neither ORERA nor the district administration took any steps for executing the order.

“ORERA and district administration are empowered to execute orders pertaining to attachment and financial compensation but most of these matters are transferred to Civil Courts, where the cases lingers,” said Pradhan.

A PIL filed by Pradhan in this matter in Orissa High Court was dismissed after which he moved the Supreme Court, challenging the dismissal.

In course of the trial, the apex court made Vipul Limited a party in the case and ordered attachment of its assets in Odisha.

In June, the OREAT transferred Rs 19 lakh pre-deposit to Pradhan’s account along with accrued interest and in August, Vipul submitted a cheque of another Rs 38.50 lakh.

“After a long legal battle, so far, the builder has paid Rs 60 lakh as compensation towards the residential unit,” said Pradhan.

However, the commercial unit which was purchased by Pradhan by paying an advance of Rs 31.50 lakh for a total sum of Rs 37 lakh in 2013, has still not been handed over by the builder.

“For reasons unknown, the builder unilaterally cancelled the booking in 2020. I filed another case in this matter in ORERA but the builder sold and registered the unit in someone else’s name,” said Pradhan.

The matter went to OREAT which awarded the shop and Rs 23 lakh compensation, but according to Pradhan, he still does not have possession of the commercial unit.

Expressing his opinion of the case, SN Rao, a senior citizen based at Unit 6 area of the city, said that Bhubaneswar has witnessed a significant boom in the real estate sector in recent years with unprecedented rise in property prices. However, gaping holes in the system has been to the advantage of realtors in fleecing buyers.

“Unsuspecting buyers, at times investing their lifetime savings into a property often end up with one or more unfulfilled promises from the realtor’s end. And in most cases, they prefer withdrawing than taking on the high and mighty builders’ lobby,” he added.

Pradhan echoed Rao stating, Bhubaneswar’s real estate boom is likely to continue as the city expands and modernises. “Potential property buyers should conduct thorough research and consider long-term trends when making investment decisions.”