Bhubaneswar: In a bid to safeguard the interests of homebuyers, Odisha Real Estate Regulatory Authority (ORERA) has amended its resolution on project closure policy for promoters, streamlining the process with a standardised application form.
Sources said the amendment stipulates that one per cent of the project cost from the RERA designated account shall be retained for five years after the occupancy certificate is issued to a homebuyer.
The amendment notification indicates the retained funds shall be utilised to address structural defects and workmanship issues in the real estate project, TOI reported. Previously, the resolution mandated retention of all funds in the RERA designated account.
“Considering homebuyers’ interests and provisions under the Real Estate (Regulation and Development) Act of 2016, the authority has modified its July resolution of project closure policy,” the amended notification said.
The provision applies to projects funded through allottee contributions. For projects developed using promoters’ own funds, repair expenses shall be borne by the promoters, it said.
On completion of the project, the promoter is required to apply to ORERA for closure of the project in the prescribed application form. There was no application form issued for project closure policy earlier, sources said.
“The authority after thoroughly examining the information furnished in the application form shall allow closure of the project subject to fulfilment of all the criteria asked for in the application form,” the notification read.
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