Kamal Ghorui
On May 7, a letter by the ministry of housing and urban affairs was issued regarding the amendment to RERA through the Jan Vishwas (Amendment of Provisions) Act, 2026
Bhubaneswar: Real estate experts and homebuyers in Odisha have welcomed the Centre’s decision to replace the provision of imprisonment for allottees for non-compliance with tribunal orders under the Real Estate (Regulation and Development) Act, 2016, (RERA) with a monetary penalty.Legal and real estate experts termed the move part of a broader effort to decriminalise business laws and reduce the burden on courts. “The amendment aligns RERA with the govt’s larger objective of decriminalising minor offences and improving ease of living and doing business,” real estate expert Bimalendu Pradhan said.On May 7, a letter by the ministry of housing and urban affairs was issued regarding the amendment to RERA through the Jan Vishwas (Amendment of Provisions) Act, 2026.Under the earlier framework, an allottee who failed to comply with the order of a real estate appellate tribunal could face imprisonment of up to a year, along with a fine. The recent amendment removes the criminal liability and instead provides for financial penalties, a step stakeholders say will reduce fear among buyers.“The earlier provision often discouraged genuine buyers from pursuing appeals. Homebuyers, already under financial stress, were wary of the legal consequences even in cases of delayed compliance. Shifting to monetary penalties is a more pragmatic and less intimidating approach,” Pradhan added.Property consultant Amitabh Sharma pointed out that the change will help lessen the burden on the real estate tribunals. “Criminal provisions lengthen litigations, while civil penalties are easier to enforce and could ensure faster resolution of disputes,” he said.Homebuyers in the city reacted positively to the amendment. However, they emphasised accountability. “This is some relief. Buyers seldom delay compliance intentionally. Sometimes, financial constraints or disputes over interpretation of orders play a role,” Ritesh Jena, a software professional who recently booked a flat in the city, said.Industry expert Sritam Moharana said that the move might dilute the enforcement. “While imprisonment may have been harsh, fear of strict action ensured compliance. Authorities must ensure that monetary penalties are significant enough to deter wilful defaulters,” Moharana added.Priya Mohanty, a first-time buyer, echoed similar sentiments. “The move is buyer-friendly, but regulators should monitor repeat violations closely. Otherwise, some people may take penalties lightly. I really hope that the penalties under the Jan Vishwas provisions are hefty so that people will not take things lightly,” she said.
