In a major relief to the builders, the High Court has issued a restraint order on the registration fee hike notification issued by the Odisha Real Estate Regulatory Authority (RERA).
The hearing came on a petition filed by the Confederation of Real Estate Developers’ Association of India (CREDAI).
As per the rule of the RERA, when a builder seeks permission to construct eight or more flats, he has to get the project registered. Earlier, to register their projects, the builders had to deposit Rs 10 per square meter.
But on July 28, 2022, the RERA issued a notification announcing that the registration fee has been hiked from Rs 10 to Rs 200.
Challenging this, the State chapter of the Confederation of Real Estate Developers’ Association of India (CREDAI) moved the Orissa High Court, praying for the cancellation of the notification. They alleged in their petition that the RERA doesn’t have any right to hike fee. The government can instead do this.
While hearing the petition today, the State’s apex court directed the Odisha government and the RERA to furnish their responses.
The court also directed the RERA to deposit the money if collected in a bank account with accruing annual interest until the final judgment. If the final judgment goes against the RERA, the money will be refunded or vice versa.