The Odisha Real Estate Regulatory Authority (ORERA) has announced a new initiative to improve transparency and accountability in the state's real estate sector. As part of this initiative, ORERA will employ specialised forensic audit firms to investigate real estate projects suspected of facing delays, irregularities, or financial mismanagement.
This move is a key element of ORERA's broader efforts to safeguard the interests of homebuyers and ensure that the development of real estate projects proceeds in an orderly and transparent manner. The forensic audit teams will be deployed specifically in cases where projects are experiencing significant delays, issues with financial oversight, or instances of unauthorised pre-launch bookings.
The forensic audits are expected to involve in-depth investigations of these projects' accounts and financial records. The audit teams will then submit detailed reports to ORERA, which will take necessary action based on the findings. Under the new process, real estate project promoters will be legally required to cooperate fully with the audit teams, providing all necessary documents and records. Non-compliance with this requirement will be treated as a violation under the Real Estate (Regulation and Development) Act, 2016, with penalties outlined in Section 63.
The new initiative draws support from Section 35(1) of the RERA Act, which grants ORERA the authority to request information from developers, homebuyers, and real estate agents and conduct project affairs inquiries. This provision strengthens the regulatory body's oversight capacity and aims to provide better protection for homebuyers.
Industry experts have welcomed the decision, noting that forensic audits will be crucial in identifying financial irregularities and preventing funds from being diverted. This will help reduce project completion delays and ensure that projects are executed as promised. The move is also seen as a step toward improving developer discipline and promoting better business practices within the industry.
This initiative could prove highly beneficial for homebuyers. It is expected to reduce the risk of investing in projects that face financial mismanagement or other issues that may delay delivery. Furthermore, this approach is hoped to foster a more professional and trustworthy environment for future property buyers.
ORERA has also called on stakeholders, especially homebuyers, to report any unusual delays or suspicious activities related to real estate projects. The authority assured us that such reports would be promptly investigated and appropriate actions would be taken when necessary. Through this new forensic audit mechanism, ORERA aims to proactively address issues before they develop into larger problems that could adversely affect homebuyers.
