SC Orders Attachment Of Real Estate Firm’s Assets In Bhubaneswar; Issues Notices To Odisha Govt, ORERA

Bhubaneswar: The Supreme Court has ordered attachment of the assets of a real estate firm in Bhubaneswar and issued notice to the state government after taking cognisance of an appeal challenging a decision of the Orissa High Court.

The Supreme Court also sent notices to Odisha Real Estate Regulatory Authority (ORERA) and the state Housing and Urban Development department regarding the poor execution rate of ORERA orders as well as sending orders to the Civil Court for execution.

The notices are returnable on August 9, 2024.

Meanwhile, all the immovable and movable assets of real estate firm M/S Vipul Limited, Bhubaneswar, shall remain attached, the bench of Justices Surya Kant and K V Viswanathan said in the order of May 10.

Earlier, the SC took cognisance of an appeal challenging decision of Orissa HC regarding a PIL on the issue of alleged helplessness of ORERA on executing its own orders.

The PIL, which concerns the efficacy of ORERA, was originally dismissed by the Orissa HC in April. The PIL, initiated by Bhubaneswar resident Bimalendu Pradhan, sought intervention on the grounds that ORERA was unable to enforce its orders effectively.

Thee Orissa HC had then rejected the PIL, labelling it as a private interest litigation rather than a PIL, and imposed a fine of Rs 2,000 on Pradhan.

In the PIL, the petitioner had highlighted his personal experience with ORERA. He had booked a flat with a real estate firm and faced delays in obtaining possession. Although ORERA ruled in his favour, the authority was unable to execute the order.

The appeal to the Supreme Court points out that ORERA is delegating its monetary-related orders to the Orissa Public Demands Recovery Act and other types of orders to the civil court.