ORERA Establishes Conciliation and Dispute Resolution Cell for Amicable Settlement of RERA Disputes
The Odisha Real Estate Regulatory Authority (ORERA) has established a Conciliation and Dispute Resolution (CDR) Cell and issued operational guidelines for resolving disputes between homebuyers, promoters and real estate agents through conciliation.
The CDR Cell will function as an alternative dispute resolution mechanism to facilitate amicable settlement of disputes arising under the Real Estate (Regulation and Development) Act, 2016. Disputes falling within the scope of the Act may be referred to the Cell either by ORERA or upon an application made by any of the parties.
ORERA may refer a complaint to the CDR Cell, with the consent of both parties, where it is satisfied that there is a genuine possibility of resolving the dispute through conciliation. A party seeking conciliation is required to submit an application, which is then communicated to the opposite party by post or email. The opposite party must communicate its consent within seven days of receiving the communication.
Upon receipt of consent, the applicant is required to deposit ₹500 with the Secretary, ORERA, following which the matter is referred to the CDR Cell. The parties are thereafter informed of the date, time and venue of the hearing. The Cell is required to endeavour to resolve the dispute within two months.
The guidelines require both parties to remain present at the hearing. Where the parties arrive at a settlement, the terms must be reduced to writing and signed by both parties. The resulting consent agreement is binding upon the parties and persons concerned. Any failure to comply with such binding settlement may be taken into consideration in subsequent proceedings before ORERA.
Where conciliation fails and the parties are unable to reach a settlement, the matter is to be forwarded to ORERA or the appropriate court, as applicable.
ORERA Chairman Asit Kumar Mohapatra stated that legal experts would be appointed to assist the CDR Cell. He also noted that previous attempts to establish a similar mechanism in Odisha had not become operational, including an initiative undertaken in January of the previous year due to the absence of requisite government approval. The Authority subsequently examined successful conciliation models adopted in other States, including Maharashtra, while formulating the present mechanism.
Key Takeaway: The ORERA CDR Cell provides a structured conciliation mechanism for promoters, agents and allottees to seek an amicable resolution of RERA disputes, with settlements recorded through binding consent agreements and unresolved matters capable of being pursued before the appropriate forum.
