In a significant step aimed at bringing greater transparency to the real estate sector, the Odisha Real Estate Regulatory Authority (ORERA) has tightened regulations for builders and promoters operating in the State.

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The authority has made it mandatory for builders to submit Quarterly Progress Reports (QPR) every three months to ensure that flat buyers are not misled or cheated during apartment purchases.

Under the new enforcement mechanism, builders who fail to comply with the rules could face strict action, including freezing of bank accounts and cancellation of project registrations.

ORERA officials said the move has been introduced to protect the interests of homebuyers and improve accountability in the housing sector.

As per the rules, builders must provide complete details regarding project progress in the QPR. This includes the percentage of construction completed according to the approved timeline, financial status of the project, money collected from buyers and the amount spent on construction work. Builders will also have to specify the expected date of handing over flats to customers.

Although the requirement to submit QPRs existed earlier, many promoters reportedly ignored the rule and escaped with small penalties ranging from Rs 5,000 to Rs 10,000. Due to weak enforcement, many buyers allegedly suffered delays, lack of transparency and uncertainty regarding project completion.

ORERA has now warned that builders failing to submit reports on time may face penalties amounting to five percent of the total project cost. Repeated violations may result in even stricter action, including cancellation of project registration and freezing of bank accounts.

The authority has also instructed promoters to regularly update all project-related information on the ORERA website. This will allow buyers to verify project details, financial status and construction progress before investing their money. Officials believe the system will help prevent diversion of funds collected from one project into another, a practice often blamed for delays in handing over flats.

According to officials, more than 1,500 promoters are currently active in Odisha. However, notices have already been issued to 113 promoters for failing to submit QPRs. Buyers facing issues related to project delays or transparency can also file complaints with ORERA.

The initiative has been welcomed by several stakeholders in the real estate sector, including CREDAI. The focus now remains on how effectively the new measures are implemented and whether they succeed in strengthening buyer confidence in Odisha’s housing market.

“Builders have to disclose in the QPR how much they collected and how much they spent on a housing project. Otherwise, we will impose a fine of upto 5 percent. Previously, we had restricted small fine amounts such as Rs 5,000 or Rs 10,000. Subsequently, we felt that the norms are not proving to be effective due to the small amounts of fine,” ORERA Chairman, Asit Mohapatra, said.

“Now we have withdrawn the small fine amounts,” the ORERA Chairman added.