The Real Estate Regulatory Authority (RERA), Odisha’s real estate regulatory authority has pulled up a city-based realtor for the arbitrary act on its part in abandoning a housing project midway, leaving the home buyers in the lurch.

“The project is still incomplete as appears from the averments made in the complaint petition. Without completing the project, the promoter is going to leave the project which is detrimental to the interest of the allottees. In the circumstances, we allow the application filed by the learned Counsel for the complainant”, RERA stated while pronouncing an interim order”.

The real estate regulatory authority passed the order in response to a petition moved by the allottees of Kalyan Plaza Annex Housing Project and directed the Hi Tech Estates & Promoters Private Limited that “the builder can not shift the responsibility of maintenance to the flat owners unless the project is fully completed, flat owners society is formed, the common area is transferred to the society and production of valid occupancy and completion certificate.

“The promoter is not supposed to leave management before handing over the charge to the association as contemplated U/s Il(4)(e) of the Real Estate (Regulation & Development) Act, 2016. The Act specifically stipulates that it is the responsibility of the promoter to enable formation of an association/society of the allottees under the local laws applicable”, the regulatory authority said.

Section 17 of the Act provides that the promoter shall execute a registered conveyance deed in favour of the allottee along with the undivided proportionate title in the common areas to the association of the allottees or the competent authority, as the case may be, and handover the physical possession of the plot, apartment or building, as the case may be, to the allottees and the common areas to the association of the allottees or the competent authority, as the case may be, in a real estate project, and the other title documents pertaining thereto within specified period as per sanctioned plans as provided under the local laws, it pointed out.

Therefore, till handing over management to the association of allottees, the promoter has to manage the affairs of the project, the RERA order maintained.