Bhubaneswar: As the State Legislative Assembly is not in session, the State Government has brought the much-awaited Odisha Apartment (Ownership & Management) Bill, 2023, in the Ordinance route.
The Department of Law has notified the Ordinance called as the Odisha Apartment (Ownership and Management) Ordinance, 2023, which strives to consolidate the law relating to ownership of an apartment in a building with an undivided interest in the common areas and facilities.
Under the Ordinance, which will replace Orissa Apartment Ownership Act 1982, common areas such as corridors, staircases, lifts, play area and the 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.
The provisions of the Ordinance will be applicable to all apartments and buildings converted to apartments and projects on both free-hold and lease-hold lands will come under its purview.
The Ordinance also makes it mandatory for the promoter as well as allottees of a real estate/apartment project to form an ‘association of allottees’ – a body that will administer the affairs of the apartment project or property including the common areas and facilities in accordance with the provision of the proposed act.
The association will be formed immediately after booking seven apartments or 50 per cent of the apartments of a project, whichever is lower, and its forming will be a joint responsibility of the promoter and the allottees/apartment owners.
The entire land of the project will be treated as common area and will be registered in the name of the association.
Moreover, the Ordinance says that there will be only one ‘association of allottees’ for one project to be governed by a common by-law. All the registered ‘association of allottees’ will have to adopt and abide by the by-law. Besides, each allottee, including those having multiple apartments in a project, will have one voting right. The promoter will also have one voting right.
The promoter has to submit a declaration to the Competent Authority in respect of the building, whether constructed before or after the commencement of this Ordinance, within 30 days of issue of Occupancy Certificate, in such form and manner as may be prescribed.
The promoter shall rectify any structural defect or any other defect in workmanship, quality or provision of services or any other obligations without further charge, within a period of five years from handing over of possession to the allottee.
As per the Ordinance, the promoter will maintain the common area and facilities till the association of allottees is formed in accordance with the condition laid down and shall be entitled to levy proportionate maintenance charge as specified in the declaration.
The regulation also makes occupancy certificate, RERA registration, and registration certificate of association of allottees mandatory for registration of the sale deed. Moreover, the association allottees to be formed will be a body corporate to facilitate smooth registration of projects and common areas in its favour.
Last March, the State Government brought this Bill in the Assembly. However, it could not pass due to time constraints.
