SUMMER INTERNSHIP REPORT

ON
“ IMPACT OF ORERA ON THE REAL ESTATE MARKET OF ODISHA”
AT

Prepared By: GYANARANJAN SWAIN

Enrollment No: 20DM004
Faculty Guide:- Company Guide:-
Prof. SUPRATIM PRATIHAR Mr. SABU AUGUSTINE
Assistant Professor(Marketing) (Zonal Manager)
IMIS, Bhubaneswar Naukri.com, Bhubaneswar
As a partial fulfillment of Post Graduate Diploma in Management
programme of:
 CERTIFICATE

This is to certify that Mr. GYANARANJAN SWAIN has completed the

project report titled “IMPACT OF ORERA ON THE REAL ESTATE
MARKET OF ODISHA” as a bonafide work under my supervision.
I also furthur certify that the project work is carried out to the best of
my knowledge and the work reported herein does not form any
dissertation on the basis of any other work conferred on an earlier
occasion.

Faculty guide Company Guide

Date: Date:
 DECLARATION
I hereby declare that the internship report entitled “IMPACT OF
ORERA ON THE REAL ESTATE MARRKET OF ODISHA” has been carried
out by my own efforts and fact arrived at my observation under the
guidance and motivation of my faculty guide Mr. Supratim Pratihar.

Name: GYANARANJAN SWAIN

Enrollment: 20DM004
Batch: 2020-22
 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my company

guide Mr. Sabu Augustine who gave me this golden opportunity to
do this wonderful project on the topic “IMPACT OF ORERA ON REAL
ESTATE MARKET OF ODISHA” which helped me in doing a lot of
research and I came to know about so many things out of it.
Secondly I would also like to thank Prof. Supratim Pratihar my
faculty guide who helped me finish this project, and guided me on
every obstacle that came on the way while performing this activity.
This report really helped me in increasing my knowledge and skills.

Gyanaranjan Swain
 EXECUTIVE SUMMARY

The real estate sector in india assumed greater prominence with the
liberalization of the economy,as the consequent increase in business
opportunities and labour migration led to rising demand for
commercial and housing space. At present the real estate and
construction sectors are playing a crucial role in the overall
development of indias core infrastructure. The real estate industrys
growth is linked to developments in in the retail, hospitality and
entertainment industries, economic services and information
technology enabled services and vice versa
This study is related to real estate industry in india. Heightened
realization on the part of all stakeholders that infrastructure would
play a key role towards pushing indias GDP to the desirable 8 percent
mark has come as a boon for indias construction industry.
This study was basically concerned with consumer buying behavior
towards residential properties. The basic objectives behind carrying
this report was to study the impact of RERA on the real estate
market of Odisha.
 INTRODUCTION TO RERA
The Real Estate Regulation and Development Act, 2016 is an Act of
the Parliament of India which seeks to protect home-buyers as well
as help boost investments in the real estate industry. The Act
establishes a Real Estate Regulatory Authority (RERA) in each state
for regulation of the real estate sector and also acts as an
adjudicating body for speedy dispute resolution. The bill was passed
by the Rajya Sabha on 10 March 2016 and by the Lok Sabha on 15
March 2016. The Act came into force on 1 May 2016 with 61 of 92
sections notified.[1] The remaining provisions came into force on 1
May 2017.[2] The Central and state governments are liable to notify
the Rules under the Act within a statutory period of six months.

HISTORY
The Real Estate Regulatory Authority (RERA) Bill was introduced in
2013. In December 2015, the Union Cabinet of India had approved
20 major amendments to the bill based on the recommendations of
a Rajya Sabha committee that examined the bill. The Bill had been
referred to a selection committee, which had given its report in July
2015. However, Congress, Left and AIADMK had expressed their
reservations on the report through dissent notes. The Rajya Sabha
approved the bill on 10 March 2016 and the Lok Sabha approved it
on 15 March 2016.
Subsequently, by the powers vested by Section 1 of the Rera Act, the
Ministry of Housing and Urban Poverty Alleviation vide Notification
S.O. 1544 dated 26.04.2016 notified 61 Sections out of 92 Sections
on 1 May 2016 and vide Notification S.O. 1216 dated 19.04.2017
notified the remaining 31 Sections.
STRUCTURE
The Rera Act 2016 has been divided into 10 Chapters, which is
further categorised into 92 Sections.
The Act starts with the Preamble, provides title, extent and
commencement, registration of real estate projects and real estate
agents, functions and duties of promoter, rights and duties of
allottees, about Real Estate Regulatory Authority, Central Advisory
Council, Real Estate Appellate Tribunal, various offences, penalties,
and adjudication, about finances, accounts, audits, and reports and
other miscellaneous provisions.

Chapter No. Title of the Chapter Sections Covered

I Preliminary 1 and 2
II Registration of agents and projects 3 to 10
III Function and Duties of Promoter 11 to 18
IV Rights and Duties of Allottees 19
V The Real Estate Regulatory Authority 20 to 40
VI Central Advisory Council 41 and 42
VII The Real Estate Appellate Tribunal 43 to 58
VIII Offences, Penalties and Adjudication 59 to 72
IX Finance, Accounts, Audit and Reports 73 to 78
X Miscellaneous 79 to 92
REGISTRATION OF REAL ESTATE PROJECTS
AND AGENTS
The Act enlists the registration policy of a real estate project and real
estate agent and related provision under Section 3.
Sub-section (1) of Section 3 of the Act makes it mandatory for all real
estate projects to register with RERA for launching a project to
provide greater transparency in project marketing and execution. For
ongoing projects which have not received a completion certificate on
the date of commencement of the Act, will have to seek registrations
within 3 months.
Each State RERA must either approve or reject the application for
registration within 30 days from the date of application submitted by
the promoter. Upon successful registration, the promoter of the real
estate project will be provided with a registration number, a login ID,
and a password to fill up the essential details on the website of the
State RERA.
If the promoter fails to register, he shall be liable to a penalty that
may extend up to a penalty of 10% of the estimated project cost.
Furthermore, if he does not comply with the orders, directions or
decisions issued by the State Rera, he shall be punishable with
imprisonment which may extend up to three years or with a fine
which may extend up to a further 10% of the estimated cost of the
project.
Real estate agents who facilitate the selling or purchase of properties
must take prior registration. Such agents will be issued a single
registration number for each State or Union Territory, which must be
quoted by the agent in every sale facilitated by him. If a real estate
agent fails to register or contravenes section 9 (registration of real
estate agent) and section 10 (Functions and duties of a real estate
agent), he shall be liable to a penalty of ₹10,000 payable every day
during which such default continues. This penalty may cumulatively
extend up to 5% of the cost of the plot, apartment or building, as the
case may be, of the real estate project.

ESTABLISHMENTS OF RERA AND APPELLATE

TRIBUNAL
The establishment under Section 20 and 43 of the Act will help to
establish state-level Real Estate Regulatory Authorities to regulate
transactions related to both residential and commercial projects and
ensure their timely completion and handover. Appellate Tribunals
will now be required to adjudicate cases in 60 days as against the
earlier provision of 90 days and Regulatory Authorities to dispose of
complaints in 60 days while no time-frame was indicated in the
earlier Bill.

STATE REGULATIONS UNDER RERA

Section 84 of the Act provides that within six months of the Act being
enforced, each State Government shall make rules for carrying out
the provisions of the Act. The said Rules are to be notified by the
State Government. As late as 31 October 2016, Central Government,
released the Real Estate (Regulation and Development) (General)
Rules, 2016, vide Notification by the Ministry of Housing & Urban
Poverty Alleviation (HUPA). The Rules so issued by the Central
Government are applicable to the five Union Territories without
Legislature viz., Andaman & Nicobar Islands, Dadra & Nagar Haveli,
Daman & Diu, Lakshadweep, and Chandigarh. The Rules have been
issued after the prior release of Draft for comments.
As of 13 July 2019, Arunachal Pradesh, Meghalaya, Sikkim and
Nagaland have not notified the Rules. In the case of five north-
eastern states, the RERA Act is facing certain constitutional
challenges as the land in those states are community owned. West
Bengal notified a similar law called the West Bengal Housing Industry
Regulatory Act, 2017, which came into effect from 1 June 2018.
However, as of July 2019, many states have not implemented the law
and failed to notify a Permanent Regulator, Appellate Authority or a
website.

IMPACT OF RERA ON HOME BUYERS

The most positive aspect of this Act is that it provides a unified legal
regime for the purchase of flats; apartments, etc., and seeks to
standardise the practice across the country. Below are certain key
highlights of the Act:

Establishment of the regulatory authority:

The absence of a proper regulator (like the Securities Exchange
Board of India for the capital markets) in the real estate sector, was
long felt. The Act establishes Real Estate Regulatory Authority in each
state and union territory. Its functions include protection of the
interests of the stakeholders, accumulating data at a designated
repository and creating a robust grievance redressal system. To
prevent time lags, the authority has been mandated to dispose
applications within a maximum period of 60 days; and the same may
be extended only if a reason is recorded for the delay. Further, the
Real Estate Appellate Authority (REAT) shall be the appropriate
forum for appeals.
Compulsory registration:
According to the central act, every real estate project (where the
total area to be developed exceeds 500 sq mtrs or more than 8
apartments is proposed to be developed in any phase), must be
registered with its respective state’s RERA. Existing projects where
the completion certificate (CC) or occupancy certificate (OC) has not
been issued, are also required to comply with the registration
requirements under the Act. While applying for registration,
promoters are required to provide detailed information on the
project e.g. land status, details of the promoter, approvals, schedule
of completion, etc. Only when registration is completed and other
approvals (construction related) are in place, can the project be
marketed.

Reserve account:
One of the primary reasons for delay of projects was that funds
collected from one project, would invariably be diverted to fund
new, different projects. To prevent such a diversion, promoters are
now required to park 70% of all project receivables into a separate
reserve account. The proceeds of such account can only be used
towards land and construction expenses and will be required to be
certified by a professional.
Continual disclosures by promoters:
After the implementation of the Act, home buyers will be able to
monitor the progress of the project on the RERA website since
promoters will be required to make periodic submissions to the
regulator regarding the progress of the project.
Title representation: Promoters are now required to make a positive
warranty on his right title and interest on the land, which can be
used later against him by the home buyer, should any title defect be
discovered. Additionally, they are required to obtain insurance
against the title and construction of the projects, proceeds of which
shall go to the allottee upon execution of the agreement of sale.
Standardisation of sale agreement:
The Act prescribes a standard model sale agreement to be entered
into between promoters and homebuyers. Typically, promoters
insert punitive clauses against home buyers which penalised them
for any default while similar defaults by the promoter attracted
negligible or no penalty. Such penal clauses could well be a thing of
the past and home buyers can look forward to more balanced
agreements in the future.
Penalty:
To ensure that violation of the Act is not taken lightly, stiff monetary
penalty (up to 10% of the project cost) and imprisonment has been
prescribed against violators.

IMPACT OF RERA ON REAL ESTATE

Initially, a lot of work is to be done to get the existing and new
project registered. Details such as status of each project executed in
last 5 years, promoter details, detailed execution plans, etc., needs
to be prepared. With the advent of RERA, specialised forums such as
the State Real Estate Regulatory Authority and the Real Estate
Appellate Tribunal, will be established for the resolution of disputes
pertaining to home buying and the aggrieved party will have no
recourse to other consumer forums and civil courts, on such matters.
While the RERA sets the groundwork for fast-tracking dispute
resolution, the litmus test for its success, will depend on the timely
setting up of these new dispute resolution bodies and how these
disputes are resolved expeditiously with a degree of finality.
23 states and union territories (UTs) have either established their
permanent or interim regulatory authorities. Under the RERA, every
state and UT must have its own regulator. Developers will not be
able to market their ongoing or upcoming projects, till they register
either with the permanent or interim regulator in states. For ongoing
projects, where completion or occupancy certificate has not been
given, the deadline for registration ended on July 31, 2017. Only four
states – Gujarat, Maharashtra, Madhya Pradesh and Punjab – have
established their permanent Real Estate Regulatory Authority, while
19 states/UTs have established interim authorities, an official with
the Housing and Urban Affairs Ministry said. Only 23 States/UTs have
notified the rules under the Act, while six states have drafted the
rules but have not yet notified. A total of nine states/UTs have
appointed interim Appellate Tribunals under the Real Estate Act,
while only seven states have started the online registration under
the Act.

CHALLENGES IN RERA
The RERA Act is all-encompassing and aims to make the sector a fair
ground for all stakeholders including buyers, developers, promoters
and agents. However, amidst the several positives, the Act is
believed to have certain loopholes.
No rules for delayed project approvals:
RERA lays emphasis on penalising developers for untimely project
deliveries. However, a majority of the delay in execution of projects
happens during the process of acquiring approvals and clearances
from various authorities. Currently, there are close to 50 odd
approvals that developers need to obtain before launching a project.
The average time for acquiring all the approvals can range from 1-2
years. The Act does not make the government agencies accountable
for the delay and places complete responsibility on developers. It
lacks a stringent policy to force authorities to meet timelines or
fasten the process of granting approvals.
Lack of a single-window approval mechanism:
One of the most significant drawbacks of RERA is excusing Statutory
Authorities from granting timely permissions to real estate
developers for their projects. Since supplementing the project
registration application with permissions from such Authorities is
mandatory, most developers face the daunting task of acquiring
approvals from various agencies. This process is extremely
cumbersome and time-consuming as different subject matters fall
under different regulatory/statutory bodies and municipalities.
Consequently, many developers are not able to apply for project
registration for long periods.For example, environmental clearance is
the subject matter of the Central Government, while encumbrance
certificates are the matter of State governments. A single-window
clearance system can be created to aid developers in obtaining
timely approvals so that they can go ahead with the registration of
their project
Lack of strict deadlines:
The central government has been lenient with the states regarding
the deadline to draft RERA rules and their compliance with the
Centre’s regulations. Of the 14 states that have met the deadline,
almost all have diluted certain rules, thus, defeating the purpose of
strengthening the real estate sector.
Ambiguity over state-specific content:
There are certain provisions in the RERA drafts of various states that
lack clarity. For instance, the rules framed by Delhi, Karnataka,
Haryana, Gujarat, Tamil Nadu, and Uttar Pradesh do not specify the
form and content of audit certificates to be issued by architects,
engineers and chartered accountants. This may lead to overlapping
and duplication of roles of the various stakeholders and might lead
to inconsistent verdicts. A few states have also failed to give detailed
information about the paperwork and the fee required to be
submitted for the registration of real estate agents.
Lack of technological know-how:
The Real Estate Regulatory Authority of Karnataka, within two years
of implementation of RERA in the State, had identified 1,700
unregistered housing projects out of which developers of around 700
projects did not respond to the repeated notices of the Authority to
get registered. Some of these projects are by lesser-known
developers located in small cities within Karnataka where there is a
lack of awareness about RERA. Also, people here may not have the
computing skills needed to complete the entire online registration
process by themselves. This example can be replicated across all
non-metropolitan cities of India. The Central and State governments
need to conduct a thorough outreach program to educate all
stakeholders in all small towns about the project registration process
under RERA.

The registration process is too tedious:

For instance, there are two Real Estate Regulatory Authorities in
Haryana and both have some differences in the application process.
This makes the application process quite tedious for developers who
have multiple projects in the State. There are two lengthy forms
required to be filled for registration under Haryana RERA, Gurgaon,
namely a detailed project report and several online forms.
Completing these forms becomes tedious and time-consuming as
these comprise of almost the same information. Several challenges
and teething issues exist in the application process of RERA, and the
Central and State governments should take all the feedback from the
market and implement the same promptly to make the application
process more straightforward and user-friendly.

IMPACT OF ORERA ON ODISHAS REAL

ESTATE MARKET
The Odisha Real Estate Regulatory Authority (Odisha RERA) has
shared a list of approved ongoing real estate projects and agents
across the State on its RERA website with necessary details. The
RERA office is located at 371, Vivekananda Marg, Near Bhubaneswar
Municipal Corporation Office, Bhubaneswar. Talking about the
registered RERA projects in Odisha, a total of 360 realty projects
have gained RERA approval. Most of the registered projects are
residential. The Odisha government had notified the Real Estate
(Regulation and Development) Act (RERA) in February 2017. Later, in
October, the government had established Odisha Real Estate
Regulatory Authority (Odisha RERA). Now, Odisha RERA has launched
its official website for registration of ongoing real estate projects and
agents under the Act across the State. On the Odisha RERA website,
home seekers can check all details about RERA registered projects
and agents. You can also check the complaint status on the same
portal.
As per the latest information on the Odisha RERA portal, a total of
113 ongoing realty projects have gained RERA certificates from the
regulatory authority. Talking about the registered agents, the
Authority has given RERA certificates to only 12 agents till date.
More than a month post the registration deadline, the Odisha
government has failed to establish a regulatory body and a website
for registration of ongoing realty projects in the state under the Real
Estate (Regulation and Development) Act (RERA).
DS Tripathy, President, Confederation of Real Estate Developers’
Association of India (CREDAI), Odisha, has stated that the lack of
infrastructure has aggravated the registration issues among
developers and agents. The registrations had commenced only after
31 July as several developers in the state were not well informed
about RERA and its full functioning.
Experts point out that other states have simplified the registration
process by establishing RERA website for online registration and
giving instant registration number of projects. On the contrary, all
applications for registration in Odisha till now have been received
manually.
Further, an extended deadline for registration of ongoing projects
under Odisha RERA has been demanded by developers, owing to the
lack of awareness and unavailability of a proper RERA portal.

ORERA APPROVED PROJECTS IN ODISHA

Project Developer Configuration

Mahima Plaza Mahima Infracon Pvt Ltd. 3 BHK apartment

2, 3 BHK
Evos Mahaveer Enclave Evos Buildcon Pvt. Ltd.
apartment

JB AB Elysium J B Assets Pvt. Ltd. 3 BHK apartment

Evos Bilasini Enclave Evos Buildcon Pvt Ltd 3 BHK apartment

Skytech Infinity Villa Skytech Infraprojects Pvt Ltd 4 BHK villa

Odisha  Udyog 9 Grand 2, 3 BHK

Odisha  Udyog Infra Projects
Avenue apartment

2, 3 BHK
D N Fairytale D.N. Homes
apartment

Auroville Narula Homes 4 BHK apartment

Mahadev Griha Nirman  2, 3 BHK

Mahadev Homes
Bhubaneswar apartment
Metro Premia Phase III A Metro Garden Estate Pvt Ltd  3 BHK villa

JPS Sun City JPS Infra Projects Pvt Ltd 3 BHK villa
 CONCLUSION
For many years, investors and buyers of real estate projects were
facing issues with the transactions. Because all the transactions were
in favour of the developers and most lopsided. Therefore, the Indian
Parliament introduced this act to create a fair transaction between
the buyer and seller of real estate properties. Every state and union
territory are required to introduce their regulations. Thus, you
should only buy RERA approved projects in India. If you are in Odisha
then you can look for RERA Registered Builders in Bhubaneswar to
get assistance. Even in worse case after living in a society for a long
period of 10-15 years, homeowners need to vacant the society due
to builder’s mistake of not getting approval from government for the
said project.
And after all these, for any of these malpractices, if a home buyer
files a complaint, it use to take years to get a verdict. However, now
to bring transparency and accountability to this sector, Real Estate
Regulatory Act, 2016 has come to force.
This aims to create a more equitable and fair transaction between
sellers and buyers of properties. The Real Estate (Regulation and
Development) Act is expected to ensure consumers will not be
cheated or taken for a ride by the developers.
RERA makes it mandatory for all commercial and residential real
estate projects where the land is over 500 square meters, or eight
apartments, to register with the Real Estate Regulatory Authority
(RERA) for launching a project, in order to provide greater
transparency in project-marketing and execution.
 BIBLIOGRAPHY
http://mohua.gov.in/cms/rera.php
https://rera.odisha.gov.in/
http://www.urbanodisha.gov.in/OdishaRERA.aspx
https://www.99acres.com/articles/odisha-rera-list-of-registered-
projects-and-agents-nid.html
https://timesofindia.indiatimes.com/topic/RERA