Bill tabled to enable home owners form association in Odisha

March 28, 2023
Bill tabled to enable home owners form association in Odisha

BHUBANESWAR: The state government is planning to pass a new bill in the assembly which proposes to form an association of homebuyers in real estate projects if seven persons or 50% of allottees, whichever is lower, are allotted flats in apartments.

Under the Odisha Apartment Ownership Bill 2023, which will replace Orissa Apartment Ownership Act 1982, common areas such as corridors, staircases, lifts, play area and entire land of apartments will be registered in the name of the buyers’ associations. Under the 1982 Act, the common area is registered proportionately in the name of the individual buyers.

Housing and urban development minister Usha Devi, in her statement of objects and reasons behind the new bill introduced in assembly on Monday, said since the state’s existing Act of 1982 predates the legislation of RERA Act, it has no provisions relating to association of allottees and transfer of common areas of the project in favour of such associations, which had led to litigation.

Apartments which have come up before this bill becomes an Act and after the Real Estate (Development and Regulation) (RERA) Act, 2016, was implemented on May 1, 2017, the common areas have to be registered in the name of buyers’ associations within six months of implementation of this new Act.

The associations will insure the housing project against fire, flood, cyclones and other disasters using funds meant for common expenses. After competition of 30 years of an apartment building, the association has to get structural safety of the building tested by a certified structural safety engineer. Similar inspection has to be done every five years after that.

A series of petitions in Orissa high court had challenged the existing state laws, saying the same contravenes the RERA Act, needing the government to make fresh laws which are RERA-compliant. The HC on March 6 had hoped the state would place a RERA-complaint bill in the current session of the assembly.

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