The High Court dismissed a batch of writ petitions filed by a real estate company challenging actions taken against it under the RERA Act. The Court held that depositing funds to secure bail for directors does not absolve the promoter of statutory liabilities under the Act.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF ORISSA AT CUTTACK
W.P.(C) No. 9136 of 2024 and Batch
In W.P.(C) No.9136 of 2024, W.P.(C) Nos.9337, 10681, 11942, 12705, 12707, 12933, 12935, 12937, 13111, 13113, 13116, 13517, 13524, 13566 & 34190 of 2022, W.P.(C) Nos.17528 & 19558 of 2023.
Rajdhani Systems and Estates Pvt. Ltd., Bhubaneswar DistrictKhurda, represented by its Executive Director Mr. Tirupati Choudhury, S/o- Late Kunja Bihari Choudhury, Plot No: A/103, Sahid Nagar, Bhubaneswar, P.O/P.S- Sahid Nagar, District- Khurda Pin- 751007.
…Petitioner
-Versus-
In W.P.(C) No.9136 of 2024
1. Reena Mishra , D/o- P.N. Mishra, resident of Plot No. C-89/F2, Ramprastha, District- Ghaziabad, Uttar Pradesh- 201011.
2. The Secretary, Odisha Real Estate Regulatory Authority, Bhubaneswar , Office at: Block-A1, 3rd Floor, Toshali Bhawan, Satya Nagar, Bhubaneswar, District- Khurda, Odisha.
3. The Competent Authority-cum-Additional District
Magistrate, Office at Collectorate compound P.O:- Chandnichowk, P.S:- Lalbagh, Town & District- Cuttack
In W.P.(C) No.9337 of 2022
1. Debabrata Panda , S/o- D.C. Panda, At/PO/PS- BJB Nagar, District- Khurda.
W.P.(C) No.9136 of 2024 & Batch Page 1 of 20
2. Registrar, ORERA, Bhubaneswar , Office at: Block-A1, 3rd Floor, Toshali Bhawan, Satya Nagar, Bhubaneswar, District- Khurda, Odisha.
3. Secretary, Home Department , Govt. of Odisha, Bhubaneswar. 4. Secretary, Finance Department , Govt. of Odisha, Bhubaneswar.
5. Superintendent of Police , Crime Branch (EOW), Keshari Nagar, Bhubaneswar- 751001.
In W.P.(C) No.10681 of 2022
1. Subash Chandra Mishra , resident of Qr. No.W/350, Bolani, P.S:- Bolani, District- Keonjhar, at present C/o A. Mishra Advocate Phase-2, HIG-19, Sailashree Vihar, Bhubaneswar, 751021.
2. Registrar, ORERA, Bhubaneswar , Office at: Block-A1, 3rd Floor, Toshali Bhawan, Satya Nagar, Bhubaneswar, Dist- Khurda, Odisha.
3. Secretary, Home Department , Govt. of Odisha, Bhubaneswar. 4. Secretary, Finance Department , Govt. of Odisha, Bhubaneswar.
5. Superintendent of Police , Crime Branch (EOW), Keshari Nagar, Bhubaneswar- 751001.
In W.P.(C) No.11942 of 2022
1. Saswat Mohanty , S/o Uttam Kumar Mohanty, at present quarters N. IVB 2/2, Unit-1, Bhubaneswar District-Khurda.
W.P.(C) No.9136 of 2024 & Batch Page 2 of 20
2. Registrar, ORERA, Bhubaneswar , Office at: Block-A1, 3rd Floor, Toshali Bhawan, Satya Nagar, Bhubaneswar, Dist- Khurda, Odisha.
3. Secretary, Home Department , Govt. of Odisha, Bhubaneswar. 4. Secretary, Finance Department , Govt. of Odisha, Bhubaneswar.
5. Superintendent of Police , Crime Branch (EOW), Keshari Nagar, Bhubaneswar- 751001.
In W.P.(C) No.12705 of 2022
1. Balakrishna Mishra , S/o- S.P. Mishra, Plot No- 371, Sastri Nagar, Near Anandana Marg School, Unit-4, P.S.- Kharvel Nagar, Bhubaneswar, Dist- Khurda.
2. Registrar, ORERA, Bhubaneswar , Office at: Block-A1, 3rd Floor, Toshali Bhawan, Satya Nagar, Bhubaneswar, Dist- Khurda, Odisha.
3. Secretary, Home Department , Govt. of Odisha, Bhubaneswar. 4. Secretary, Finance Department , Govt. of Odisha, Bhubaneswar.
5. Superintendent of Police , Crime Branch (EOW), Keshari Nagar, Bhubaneswar- 751001.
In W.P.(C) No.12707 of 2022
1. Sadhana Panda , Wife of- Debabrata Panda, At- D/2, 4th Floor, Nirmalya, BJB Nagar, P.S- Badagada, Bhubaneswar, District-Khurda
W.P.(C) No.9136 of 2024 & Batch Page 3 of 20
2. Registrar, ORERA, Bhubaneswar , Office at: Block-A1, 3rd Floor, Toshali Bhawan, Satya Nagar, Bhubaneswar, Dist- Khurda, Odisha.
3. Secretary, Home Department , Govt. of Odisha, Bhubaneswar. 4. Secretary, Finance Department , Govt. of Odisha, Bhubaneswar.
5. Superintendent of Police , Crime Branch (EOW), Keshari Nagar, Bhubaneswar- 751001.
In W.P.(C) No.12933 of 2022
1. Hakim Khan , S/o- Late A. Khan, At/PO/PS- Gop, Dist-Puri.
2. Registrar, ORERA, Bhubaneswar , Office at: Block-A1, 3rd Floor, Toshali Bhawan, Satya Nagar, Bhubaneswar, Dist- Khurda, Odisha.
3. Secretary, Home Department , Govt. of Odisha, Bhubaneswar. 4. Secretary, Finance Department , Govt. of Odisha, Bhubaneswar.
5. Superintendent of Police , Crime Branch (EOW), Keshari Nagar, Bhubaneswar- 751001.
In W.P.(C) No.12935 of 2022
1. Pranita Mohanty , D/o- Uttam Kumar Mohanty, At- Qrs. No.IVB, 2/2, Unit-1, Bhubaneswar- 751009, District-Khurda
2. Registrar, ORERA, Bhubaneswar , Office at: Block-A1, 3rd Floor, Toshali Bhawan, Satya Nagar, Bhubaneswar, Dist- Khurda, Odisha.
3. Secretary, Home Department , Govt. of Odisha, Bhubaneswar.
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4. Secretary, Finance Department , Govt. of Odisha, Bhubaneswar.
5. Superintendent of Police , Crime Branch (EOW), Keshari Nagar, Bhubaneswar- 751001.
In W.P.(C) No.12937 of 2022
1. Reena Mishra , D/o- P.N. Mishra, At- C-89/F2, Ramprastha, District-Ghaziabad, Uttar Pradesh- 201011
2. Registrar, ORERA, Bhubaneswar , Office at: Block-A1, 3rd Floor, Toshali Bhawan, Satya Nagar, Bhubaneswar, District- Khurda, Odisha.
3. Secretary, Home Department , Govt. of Odisha, Bhubaneswar. 4. Secretary, Finance Department , Govt. of Odisha, Bhubaneswar.
5. Superintendent of Police , Crime Branch (EOW), Keshari Nagar, Bhubaneswar- 751001.
In W.P.(C) No.13111 of 2022
1. Bedabati Chainy , D/o- Late N.B. Chainy, Plot No- A/172, Sahid Nagar, Bhubaneswar, Dist- Khurda, PIN- 751007
2. Registrar, ORERA, Bhubaneswar , Office at: Block-A1, 3rd Floor, Toshali Bhawan, Satya Nagar, Bhubaneswar, Dist- Khurda, Odisha.
3. Secretary, Home Department , Govt. of Odisha, Bhubaneswar. 4. Secretary, Finance Department , Govt. of Odisha, Bhubaneswar.
W.P.(C) No.9136 of 2024 & Batch Page 5 of 20
5. Superintendent of Police , Crime Branch (EOW), Keshari Nagar, Bhubaneswar- 751001.
In W.P.(C) No.13113 of 2022
1. Saswat Mohanty , S/o- Uttam Kumar Mohanty, At- Qrs. No.IVB, 2/2, Unit-1, Bhubaneswar- 751009, Dist- Khurda
2. Registrar, ORERA, Bhubaneswar , Office at: Block-A1, 3rd Floor, Toshali Bhawan, Satya Nagar, Bhubaneswar, Dist- Khurda, Odisha.
3. Secretary, Home Department , Govt. of Odisha, Bhubaneswar. 4. Secretary, Finance Department , Govt. of Odisha, Bhubaneswar.
5. Superintendent of Police , Crime Branch (EOW), Keshari Nagar, Bhubaneswar- 751001.
In W.P.(C) No.13116 of 2022
1. Bharati Chainy , D/o- Late N.B. Chainy, Plot No- A/172, Sahid Nagar, Bhubaneswar, Dist- Khurda, PIN- 751007
2. Registrar, ORERA, Bhubaneswar , Office at: Block-A1, 3rd Floor, Toshali Bhawan, Satya Nagar, Bhubaneswar, Dist- Khurda, Odisha.
3. Secretary, Home Department , Govt. of Odisha, Bhubaneswar. 4. Secretary, Finance Department , Govt. of Odisha, Bhubaneswar.
5. Superintendent of Police , Crime Branch (EOW), Keshari Nagar, Bhubaneswar- 751001.
W.P.(C) No.9136 of 2024 & Batch Page 6 of 20
In W.P.(C) No.13517 of 2022
1. Minakshi Devi @ Dash , W/o- Dr. Pravakar Dash, At/PONachuni, P.S- Banpur, Dist-Khurda
2. Registrar, ORERA, Bhubaneswar , Office at: Block-A1, 3rd Floor, Toshali Bhawan, Satya Nagar, Bhubaneswar, Dist- Khurda, Odisha.
3. Secretary, Home Department , Govt. of Odisha, Bhubaneswar. 4. Secretary, Finance Department , Govt. of Odisha, Bhubaneswar.
5. Superintendent of Police , Crime Branch (EOW), Keshari Nagar, Bhubaneswar- 751001.
In W.P.(C) No.13524 of 2022
1. Suprava Rath , W/o- S.C. Rath, Plot No- 36, Budha Nagar, P.OBudheswari, Bhubaneswar, Dist- Khurda
2. Registrar, ORERA, Bhubaneswar , Office at: Block-A1, 3rd Floor, Toshali Bhawan, Satya Nagar, Bhubaneswar, Dist- Khurda, Odisha.
3. Secretary, Home Department , Govt. of Odisha, Bhubaneswar. 4. Secretary, Finance Department , Govt. of Odisha, Bhubaneswar.
5. Superintendent of Police , Crime Branch (EOW), Keshari Nagar, Bhubaneswar- 751001.
In W.P.(C) No.13566 of 2022
1. Purnamasi Dash , W/o- Late N.B. Chainy, Plot No- A/172, Sahid Nagar, Bhubaneswar, District- Khurda, PIN- 751007
W.P.(C) No.9136 of 2024 & Batch Page 7 of 20
2. Registrar, ORERA, Bhubaneswar , Office at: Block-A1, 3rd Floor, Toshali Bhawan, Satya Nagar, Bhubaneswar, Dist- Khurda, Odisha.
3. Secretary, Home Department , Govt. of Odisha, Bhubaneswar. 4. Secretary, Finance Department , Govt. of Odisha, Bhubaneswar.
5. Superintendent of Police , Crime Branch (EOW), Keshari Nagar, Bhubaneswar- 751001.
In W.P.(C) No.34190 of 2022
1. Nityananda Prusty , S/o- Late Bhagaban Prusty, resident of At:Jeevan Ranga Lane, Dagarapada, P.S:- Lalbagh, PO- Chandnichowk, Cuttack- 753002, District- Cuttack
2. Registrar, ORERA, Bhubaneswar , Office at: Block-A1, 3rd Floor, Toshali Bhawan, Satya Nagar, Bhubaneswar, District- Khurda, Odisha.
3. Secretary, Home Department , Govt. of Odisha, Bhubaneswar. 4. Secretary, Finance Department , Govt. of Odisha, Bhubaneswar.
5. Superintendent of Police , Crime Branch (EOW), Keshari Nagar, Bhubaneswar- 751001.
In W.P.(C) No.17528 of 2023
1. Manjushree Ray , aged about 63 years, W/o- Soumendra Ray, At/PO- Bhanragarh, Dist- Khordha, At present Plot No. BJ 42, BJB Nagar, PO- BJB Nagar, PS- Badagada, Bhubaneswar- 751014, District- Khordha
W.P.(C) No.9136 of 2024 & Batch Page 8 of 20
2. Registrar, ORERA, Bhubaneswar , Office at: Block-A1, 3rd Floor, Toshali Bhawan, Satya Nagar, Bhubaneswar, Dist- Khurda, Odisha.
3. Secretary, Home Department , Govt. of Odisha, Bhubaneswar. 4. Secretary, Finance Department , Govt. of Odisha, Bhubaneswar.
5. Superintendent of Police , Crime Branch (EOW), Keshari Nagar, Bhubaneswar- 751001.
In W.P.(C) No.19558 of 2023
1. Prasanta Kumar Mahapatra , S/o- Harihar Mahapatra, At:Plot No.195(B), P.O:- Sarakantara, (back side of Primary School), VIA- Dumuduma, P.S:- Khandagiri, Bhubaneswar- 751019, DistrictKhurda, Odisha.
2. Registrar, ORERA, Bhubaneswar , Office at: Block-A1, 3rd Floor, Toshali Bhawan, Satya Nagar, Bhubaneswar, Dist- Khurda, Odisha.
3. Secretary, Home Department , Govt. of Odisha, Bhubaneswar. 4. Secretary, Finance Department , Govt. of Odisha, Bhubaneswar.
5. Superintendent of Police , Crime Branch (EOW), Keshari Nagar, Bhubaneswar- 751001, Dist- Khurda.
…Opposite Parties
Advocates appeared in these cases:
For Petitioner: Mr. Debasish Nanda, Advocate For Opposite Parties: Mr. Debakanta Mohanty, AGA
W.P.(C) No.9136 of 2024 & Batch Page 9 of 20
Mr. Bibekananda Bhuyan, Advocate Mr. Rajesh Ranjan Sahoo, Advocate Ms. Deepali Mohapatra, Advocate Mr. Pratap Kumar Mohanty, Advocate Mr. Sudeep Kumar Sarangi, Advocate Ms. Chitra Padhy, Advocate Mr. Prasanta Kumar Nanda, Advocate Mr. Biswajit Nayak, Advocate Mr. Manas Das Burma, Advocate
CORAM:
HON’BLE THE CHIEF JUSTICE HON’BLE MISS JUSTICE SAVITRI RATHO
ORDER
Order No. 11.07.2024
05. Chakradhari Sharan Singh, CJ.
A batch of the present writ petitions have been filed by the same company viz., M/s. Rajdhani Systems and Estates Pvt. Ltd. and since the foundational facts have been found to be almost identical, they have been heard together and are being disposed of by the present common order.
W.P.(C) No.9136 of 2024 & Batch Page 10 of 20
benefit of the schemes by booking the plots on payment, either of the full amount or in suitable installments. The petitioner further asserts that it faced various hurdles in acquisition of lands, developing them as per the lay out plans, providing roads, sewerage and electricity connection, drainage etc., which caused some delay in completing the projects and handing over the possession of the plots to the customers, who had booked the plots. As pressure was being mounted by the customers for handing over possession of the plots, and the petitionercompany was under financial stress, it took recourse to borrowing from financial institutions, family, friends etc..
W.P.(C) No.9136 of 2024 & Batch Page 11 of 20
“Since the petitioners have already deposited a sum of Rs.10 Crores before the Registry of this Court and further undertakes to deposit a sum of Rs.53,55,49,227/- before this Court within a period of three months, we are of the opinion that the petitioners who are in custody from 25.12.2012, be released on bail subject to petitioners’ furnishing two sureties of Rs.5 lakhs each and subject to following conditions:
a) The petitioners shall not directly or indirectly make any inducement, threat or promise to any person acquainted with the facts of the case so as to dissuade him to disclose such facts to the Court or to any other authority.
b) The petitioners shall remain present before the court on the dates fixed for hearing of the case. If they want to remain absent, then they shall take prior permission of the Court and in case of unavoidable circumstances for remaining absent, they shall immediately give intimation to the appropriate court and request that they may be permitted to be present through the counsel.
c) The petitioners will not dispute their identity as the accused in the case. d) The petitioners shall surrender their passport, if any (if not already surrendered), and in case, they are not holder of the same, they shall swear to an affidavit. If they have already surrendered their passport before the learned Additional Sessions Judge, Khurda, Bhubaneswar that fact should also be supported by an affidavit.
In case the petitioners fail to deposit a sum of Rs.53,55,49,227/- within the time granted by this Court, the respondents are at liberty to make an appropriate application for cancellation of the bail granted by us.
Insofar as the request of the petitioners for permission to effect sale of flats in projects of Hi-tech Plaza, Kalyan Plaza Annex, Hi-tech Plaza Annex and Hi-tech Heaven is concerned we are not prepared to
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pass any order at this stage. However, we permit the petitioners to make an appropriate application(s) in this regard before the Additional Sessions Judge, Khurda, Bhubaneswar in connection with FIR. No. 11 of 2012, 4 of 2013, 1 of 2013, 12 of 2012 and 2(2) of 2013.
If and when such an application is filed we direct the Learned Additional Sessions Judge to consider the same in accordance of law without being influenced by any one of the observations made by us in the course of this Order.
The special leave petitions are disposed of accordingly.”
W.P.(C) No.9136 of 2024 & Batch Page 13 of 20
No.19 of 2022 (arising out of C.C. No.52 of 2021); W.P.(C) No.12707 of 2022 has been filed challenging an order dated 18.04.2022 passed in OREAT Appeal No.10 of 2022 (arising out of C.C. No.41 of 2021); W.P.(C) No.12933 of 2022 has been filed challenging an order dated 07.03.2022 passed in OREAT Appeal No.71 of 2021 (arising out of C.C. No.145 of 2020); W.P.(C) No.12935 of 2022 has been filed challenging an order dated 18.04.2022 passed in OREAT Appeal No.26 of 2022 (arising out of C.C. No.112 of 2020); W.P.(C) No.12937 of 2022 has been filed challenging an order dated 18.04.2022 passed in OREAT Appeal No.27 of 2022 (arising out of C.C. No.125 of 2020); W.P.(C) No.13111 of 2022 has been filed challenging an order dated 18.04.2022 passed in OREAT Appeal No.11 of 2022 (arising out of C.C. No.42 of 2021); W.P.(C) No.13113 of 2022 has been filed challenging an order dated 18.04.2022 passed in OREAT Appeal No.38 of 2022 (arising out of C.C. No.111 of 2020); W.P.(C) No.13116 of 2022 has been filed challenging an order dated 07.03.2022 passed in OREAT Appeal No.05 of 2022 (arising out of C.C. No.38 of 2021); W.P.(C) No.13517 of 2022 has been filed challenging an order dated 18.04.2022 passed in OREAT Appeal No.37 of 2022 (arising out of C.C. No.282 of 2019); W.P.(C) No.13524 of 2022 has been filed challenging an order dated 07.03.2022 passed in OREAT Appeal No.08 of 2022 (arising out of C.C. No.40 of 2021); W.P.(C) No.13566 of 2022 has been filed challenging an order dated 07.03.2022 passed in OREAT Appeal No.06 of 2022 (arising out of C.C. No.43 of 2021); W.P.(C) No.34190 of 2022 has been filed challenging an order dated 26.09.2022 passed in C.C. Case No.22 of 2022; W.P.(C) No.17528 of 2023 has been filed
W.P.(C) No.9136 of 2024 & Batch Page 14 of 20
challenging an order dated 28.03.2023 passed in C.C. No.143 of 2022 and W.P.(C) No.19558 of 2023 has been filed challenging an order dated 12.04.2023 passed in C.C. No.235 of 2022for non-compliance of statutory provision contained in the Act of 2016 despite the fact that for the same cause of action, criminal proceedings under the OPID Act and other provisions of the IPC are pending before the Designated Court under the OPID Act. Further, the competent authority under Section 3 of the OPID Act is already holding the deposits made by the depositors for disbursement under the orders of the Supreme Court.
W.P.(C) No.9136 of 2024 & Batch Page 15 of 20
(“the Tribunal”, in short) ought not to have taken action under the provisions of the Act of 2016.
W.P.(C) No.9136 of 2024 & Batch Page 16 of 20
Regulations made thereunder. Chapter-III of the Act of 2016 lays down the functions and duties of a promoter. Section 18 of the Act of 2016 stipulates not only return of the amount to an allottee, but also to compensate the allottees in case of any loss caused to him. Section 18 of the Act of 2016 reads as under:
18. Return of amount and compensation: (1) If the promoter fails to complete or is unable to give possession of an apartment, plot or building,—
(a) in accordance with the terms of the agreement for sale or, as the case may be, duly completed by the date specified therein; or
(b) due to discontinuance of his business as a developer on account of suspension or revocation of the registration under this Act or for any other reason,he shall be liable on demand to the allottees, in case the allottee wishes to withdraw from the project, without prejudice to any other remedy available, to return the amount received by him in respect of that apartment, plot, building, as the case may be, with interest at such rate as may be prescribed in this behalf including compensation in the manner as provided under this Act:
Provided that where an allottee does not intend to withdraw from the project, he shall be paid, by the promoter, interest for every month of delay, till the handing over of the possession, at such rate as may be prescribed.
(2) The promoter shall compensate the allottees in case of any loss caused to him due to defective title of the land, on which the project is being developed or has been developed, in the manner as provided under this Act, and the claim for compensation under this subsection shall not be barred by limitation provided under any law for the time being in force.
(3) If the promoter fails to discharge any other obligations imposed on him under this Act or the
W.P.(C) No.9136 of 2024 & Batch Page 17 of 20
rules or regulations made thereunder or in accordance with the terms and conditions of the agreement for sale, he shall be liable to pay such compensation to the allottees, in the manner as provided under this Act.
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43. Establishment of Real Estate Appellate Tribunal: xxx xxx xxx
(5) Any person aggrieved by any direction or decision or order made by the Authority or by an adjudicating officer under this Act may prefer an appeal before the Appellate Tribunal having jurisdiction over the matter:
Provided that where a promoter files an appeal with the Appellate Tribunal, it shall not be entertained, without the promoter first having deposited with the Appellate Tribunal at least thirty per cent. of the penalty, or such higher percentage as may be determined by the Appellate Tribunal, or the total amount to be paid to the allottee including interest and compensation imposed on him, if any, or with both, as the case may be, before the said appeal is heard.
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(Chakradhari Sharan Singh) Chief Justice
(Savitri Ratho) Judge
S.K. Guin/PA
Signature Not Verified
Digitally Signed Signed by: SUBASH KUMAR GUIN Designation: Personal Assistant Reason: Authentication Location: High Court of Orissa, Cuttack Date: 24-Jul-2024 10:42:47
W.P.(C) No.9136 of 2024 & Batch Page 20 of 20
3 issues framed by the court
Whether depositing funds to secure bail immunity for directors absolves a real estate promoter from statutory liabilities under the RERA Act.
Whether separate proceedings under the Real Estate (Regulation and Development) Act, 2016 are sustainable despite pending criminal charges.
Whether the petitioner has a right to claim immunity from RERA provisions based on the amount deposited for bail.
Colour shows how this judgement treated each authority
Supreme Court in Special Leave to Appeal (Crl.) Nos.6749-6751; 6961-6963; 6942-6944; 6983-6985 and 69866988 of 2013Referred¶7
5 provisions across 1 enactments
Rajdhani Systems and Estates Pvt. Ltd.
The Secretary, Odisha Real Estate Regulatory Authority
The Competent Authority-cum-Additional District Magistrate
Chakradhari Sharan Singh
Savitri Ratho
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
