Bhubaneswar: Chief Justice of India Surya Kant on Thursday issued a sharp rebuke to states over the functioning of the Real Estate Regulatory Authorities (RERAs), saying most of them “became rehabilitation centres for retirees” instead of institutions meant to protect homebuyers.He said states must “revisit and rethink the very purpose of constituting the RERA”, as the people for whom these bodies were created are “completely depressed, disgusted and disappointed”. “The reality is that none of them is getting any effective relief,” the CJI observed, calling for urgent reforms.In Odisha too, the Real Estate Regulatory Authority is headed entirely by retired officials, a chairperson and two members at the top, raising similar questions about effectiveness and accountability. Two recent appointments made to strengthen the body — a land expert and a civil engineer — also happened to be retirees.Data tabled in the state assembly recently shows that the Odisha RERA continues to struggle with order execution and penalty recovery. According to records, 297 cases were sent to the Khurda collector in the last five years for penalty recovery from defaulting builders. Yet almost all remain pending, reflecting a near-stagnant enforcement system.Another data set released by the ORERA itself and currently available in the public domain shows that a staggering Rs 6.89 crore in penalties was imposed on promoters between 2017 and 2024, but only Rs 23 lakh was actually recovered. Most of these cases relate to plotting projects in and around Bhubaneswar.Real estate expert Bimalendu Pradhan said Odisha’s numbers clearly reaffirm the CJI’s concerns. “The order execution of ORERA continues to remain poor, and the latest data only proves it again. RERA was meant to safeguard homebuyers’ interests, but the impact is getting diluted,” said Pradhan, stressing the need for urgent govt attention.In the meantime, housing activists in the state argue that Odisha RERA focused solely on regulation — mostly issuing notices, holding hearings and compiling penalty orders — while ignoring its development mandate under the Real Estate (Regulation and Development) Act, 2016.“The law empowers RERA to even prescribe construction materials like bricks, cement and TMT standards. But in Odisha, this part is missing so far, which is a cause for concern,” said activist Sarat Dash, adding that the authority must shift from a complaint-driven system to a development-oriented regulatory model.A senior housing and urban development department official, responding to the criticism, said the govt is working on improving enforcement. “We took steps to ensure quicker execution of ORERA orders, including strengthening coordination with the district administration and development authorities,” the official said.With the Supreme Court now openly questioning the credibility of RERA institutions across states, experts say Odisha must overhaul its approach, from appointing domain specialists instead of retirees to focusing on enforcement, penalty recovery and real-time oversight of ongoing projects.
