Realtors irked over financial body status
Feb 18, 2014
Source : The Times of India

 

BHUBANESWAR: Registration of houses, as required after sale, has come to a grinding halt in the state following a recent government order putting realtors in the bracket of financial establishments.

The order mandates the builders to submit their financial transaction details periodically to the government under the Odisha Protection of Interests of Depositors (in Financial Establishments) Act 2011. The realtors are opposed to it, terming the order a wrong interpretation of the Act.

The economic offences wing (EOW) of the crime branch on January 18 issued instructions to the district sub-registrars to ensure that financial establishments, including real estate companies, submitted their financial position and investment details on a quarterly basis to the district collectors and SPs, as specified under Rule 9 of the Act. "You are requested to ensure that financial establishments, which also include real estate companies, have complied with Rule 9 before allowing any registration/sale/purchase of land/flats/apartments," EOW DIG Rajesh Kumar wrote to the district sub-registrars.

According to Rule 9 (Filing of Report and Return by the Financial Establishment), "Every financial establishment shall furnish, within one month of the expiry of each quarter of a financial year, a return showing particulars in respect of its business including its financial position, the area of its investments and the location made by it within and outside the state, to the collector and SP within whose jurisdiction his place of business is located."

The Act is silent on whether real estate developers fall under the purview of financial establishments.

While sub-registrars are insisting on such particulars, realtors are saying they are not financial establishments, which has resulted in the deadlock for the past several days. Transactions relating to registration of any immovable properties by the builders have been stopped by the sub-registrar offices thanks to the EOW's January 18 circular.

"A realtor who develops land, after being duly approved by the development authority, can't be termed financial establishments. The Act has nowhere described housing developers as financial establishments. Defined activities of builders are not in the ambit of a similar law in any other state," said Pradipta Biswasroy, president, Real Estate Developers' Association of Odisha (Reda).

Reda on Monday submitted a memorandum to the EOW against its order. Despite attempts, the EOW DIG could not be contacted for comment.

 

 

 

 

Latest Realty News

Realtor held for Rs 10-cr land fraud
Feb 18, 2014
BHUBANESWAR: The Economic Offences Wing (EOW) of Crime Branch (CB) on Sunday arrested a city-based real estate developer for allegedly duping people of Rs 10 crore, promising plots and houses.
Bhubaneswar Development Authority gym plan stalled
Feb 17, 2014
BHUBANESWAR: A letter from state election commissioner Ajit Tripathy has put a question mark over the proposed gymnasium at Biju Patnaik Park here. He has asked the Bhubaneswar Development Authority (BDA) to stop the construction work and shift the project elsewhere.
Puri people land in trouble
Feb 11, 2014
BHUBANESWAR: Tourists and commuters had a harrowing time on Sunday with the approach roads to Puri and Konark blocked by people, protesting the state government's move to settle their land in favour of Jagannath Temple Administration.
Software to deal with encroachments soon
Feb 11, 2014
BHUBANESWAR: Worried over land mafia and influential people grabbing vast stretches of government land in prime locations in the city, the state government has woken up to assess the exact volume of land encroached and take steps to free the properties.
Commercial rentals low in city
Feb 08, 2014
BHUBANESWAR: The commercial rents are hovering around Rs 100 per sq ft even in the posh localities like Janapath, said Sanjay Kumar Jha, Secretary of Real Estate Developers Association of Odisha (REDA). Forum Mart, BMC Bhawani Mall, Pantaloons Mall, Idco Towers, and Fortune Towers are some of the prominent commercial properties in the city.
BDA probe into payment fraud
Feb 08, 2014
BHUBANESWAR: Bhubaneswar Development Authority (BDA) has begun an in-house inquiry into payment by allottees of houses between 1992 and 2013 after it came to light that some of them had faked payments. BDA secretary Shreekant Kabi is leading the probe, government sources said.
Fencing shield for vacant plots
Feb 06, 2014
BHUBANESWAR: The state government has sanctioned Rs 4.72 crore for barbed fencing around the vacant government lands for protection from encroachments.
Rent in Bhubaneswar nosedives as demand hits low
Feb 05, 2014
BHUBANESWAR: The rental market in the city has hit a downward spiral. Houses in several localities in the state capital are now available at rents lower compared to that in even district towns.
Gharabari.com gets ‘Cyber Ratna’ award
Feb 03, 2014
BHUBANESWAR: Leading property search portal Gharabari.com has been honoured with the ‘Cyber Ratna Award’ for its commendable contribution to real-estate business and property search in India.
Demolition Drive of BDA Deferred
Jan 30, 2014
BHUBANESWAR: The Bhubaneswar Development Authority’s (BDA) initiative to use implosion technology for building demolition has been deferred due to delay in processing of the requisite permission.

Latest Realty News Of State

Realty Talk's