Kantabada Panchayat Challenges BDA Housing Project Approval at Odisha REAT

In a first, the Kantabada panchayat has approached the Odisha Real Estate Appellate Tribunal, challenging the Bhubaneswar Development Authority's decision to grant building plan approval to a private housing project allegedly falling within the panchayat's jurisdiction.
Kantabada Panchayat Challenges BDA Housing Project Approval at Odisha REAT

Bhubaneswar, April 22: Allowing the panchayat's appeal, OREAT set aside an earlier order of the Odisha Real Estate Regulatory Authority, which had rejected the gram panchayat's complaint on maintainability grounds.

Key Ruling

The tribunal ruled that the term 'aggrieved person' under RERA cannot be narrowly interpreted to mean only allottees, promoters, or real estate agents. A gram panchayat qualifies as a competent authority and therefore falls within the definition of a person under the RERA Act.

Dispute Background

The dispute centres around a three-storeyed residential project comprising 26 units at Kantabada. The panchayat alleged that BDA granted plan approval to the project even though the area continues to be classified as rural and the jurisdiction for such approvals rests with the gram panchayat (as per a 2018 notification of the Panchayati Raj and Drinking Water Department).

ORERA's Earlier Decision

In December 2024, ORERA dismissed the complaint, holding that the sarpanch was not an aggrieved person since she was neither an allottee nor a promoter nor a real estate agent.

OREAT's Observations

  • ORERA misdirected itself in interpreting Section 31(1) of the Act

  • A complainant under the Act is not restricted to allottees, promoters, or agents alone

  • What is mandatory is that the complaint must be filed against a promoter, allottee, or real estate agent

  • ORERA failed to examine core issues, including whether BDA had authority to approve plans in Kantabada

Next Steps

OREAT asked ORERA to rehear the matter on May 4 , with instruction to dispose of the matter by May-end.

Expert View

Bimalendu Pradhan, real estate expert, said: "The objective of the legislature was to bring all real estate-related disputes under one umbrella. While wrong interpretation of provisions creates confusion, such orders by OREAT give hope in the system."