Tribunal imposes Rs 50L fine on Riverdale project

RABINARAYAN JENA, OP

Bhubaneswar: In a significant legal development for the real estate sector, the Odisha Real Estate Appellate Tribunal (OREAT) has imposed a penalty of Rs 50 lakh on Pratyaksh Estate, the promoter of the ‘Riverdale’ plotting project near Trishulia in Kataka. The project is located along the Kathajodi River embankment. The penalty was imposed for advertising the land development project without obtaining mandatory registration from the Odisha Real Estate Regulatory Authority (ORERA).

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The tribunal directed the promoter to deposit Rs 50 lakh with ORERA. The order was passed by a division bench of OREAT comprising Judicial Member SK Rajguru and Technical/Administrative Member BK Das while hearing the case. According to the tribunal’s order, the amount is to be deposited with ORERA. Upon submission of the deposit receipt, the statutory amount previously deposited by the promoter will be refunded along with applicable interest. The case relates to the ‘Riverdale’ plotting project being developed in the Kathajodi river embankment area at Trishulia in Kataka.

Allegations regarding the project were brought before the OREAT, following which ORERA initiated suo motu proceedings against the promoter. After examining the matter, the tribunal imposed the penalty for violation of Section 3(1) of the Real Estate (Regulation and Development) Act, 2016, which prohibits the advertising, marketing, booking or sale of a real estate project without obtaining the required registration. The ruling is being viewed as a significant setback for unauthorised real estate advertising and plotting activities, reinforcing the importance of regulatory compliance under the RERA framework. The tribunal took into consideration the fact that the Kataka Development Authority (KDA) had approved the residential subdivision layout plan March 3, 2025.

It further noted that the promoter had deposited Rs 1.22 crore towards land compounding charges. Accordingly, the tribunal excluded the estimated construction cost of Rs 75 crore for the proposed duplex houses and revised the total estimated project cost to Rs 127.51 crore. It clarified that the penalty of Rs 50 lakh had been imposed based on this revised project valuation.