Bhubaneswar: In another setback to real estate developers in Odisha, the Inspector General of Registration (IGR) has directed to stop registration of sale deeds of apartments without strict compliance with the Real Estate (Regulation and Development) (RERA) Act – 2016.
The IGR under Board of Revenue, in a letter to registering officers in the state on Wednesday, directed not to register an instrument for transfer, alienation or transfer of of immovable property which is prohibited by the State or Centre.
“With the RERA Act mandating transfer of common areas in favour of the Association of Apartment Owners, sale deeds presented for registration which contain clauses contrary to it cannot be executed and be refused under section 22-A of the Registration Act – 1908,” TNIE quoted IGR Jyotiprakash Das as saying in the letter. The officials were asked to comply with the interim order of the Orissa High Court issued on May 12.
The high court had asked IGR to enforce Section 22-A of the Registration Act and ensure that sale deeds strictly abide by the provisions of the RERA Act.
The delay on part of the state government to bring a law for registration of Association of Allottees in line with the provisions of RERA has led to this situation, RERA activist Bimalendu Pradhan, who had filed a PIL in the HC in this regard, said. But it is only part of the problem and the planning authorities need to issue occupancy certificates in a timely manner, he added.
It may be noted that at least 12 real estate developers of the state are under scanner of State GST department for evasion of tax. The State GST Enforcement Wing has found that some of the real estate developers having turnover of more than Rs 100 core have shown nil turnover in their VAT returns. Though they collected VAT of 2% on gross value of the apartments, they did not deposit the same in government account.
Also Read: 12 Real Estate Developers Under Scanner For Tax Evasion In Odisha – odishabytes
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