Odisha Government Passes New Apartment Ownership Bill to Safeguard Owners’ Rights

Bhubaneswar: The Odisha Apartment (Ownership and Management) Bill, 2023 was passed in the state Assembly on Tuesday, just a day after its introduction. This legislation is set to replace the Odisha Apartment (Ownership and Management) Ordinance, with the primary aim of safeguarding the rights of apartment owners and ensuring the proper maintenance and effective management of apartment complexes.

The Odisha Apartment Ownership Act of 1982 was initially enacted to provide a legal framework for individual apartment ownership, coming into force on May 1, 1984, followed by the Odisha Apartment Ownership Rules in 1992. However, during the administration of these provisions, several operational deficiencies were identified. The Acts and Rules lacked appropriate definitions, clear jurisdiction and powers for the Competent Authority, and sufficient safeguards to fully protect the interests of apartment owners.

Additionally, the enactment of the Real Estate (Regulation and Development) Act in 2016 necessitated extensive amendments to the Odisha Apartment Ownership Act of 1982. Therefore, the government opted to introduce a new legislation, the Odisha Apartment (Ownership and Management) Bill, 2023, rather than pursuing exhaustive amendments to the existing Acts and Rules.

This new Bill incorporates several progressive and transformative provisions aimed at regulating individual apartment ownership and management. Some of its key objectives include:

1. Regulating the use of common areas within apartment complexes.
2. Establishing a common fund to cover common expenses.
3. Introducing provisions for the registration of common areas in favour of the Association of Allottees, aligning with the provisions of the RERA Act.
4. Enabling the registration of Associations of allottees with the Competent Authority, with uniform provisions specified in the bylaws.
5. Clearly defining the accountability and responsibilities of promoters.
6. Outlining the rights and responsibilities of each apartment owner concerning the Association of Apartment Owners.
7. Facilitating the formation of Associations of Apartment Owners.
8. Establishing provisions for apartment insurance and ensuring structural stability.
9. Ensuring compliance with relevant Acts, rules, and regulations to effectively protect the interests of apartment owners.