Guideline for deciding cases involving issues relating to promotership and project cost under RERA Act, 2016 – Citicon Engineers Ltd. Vs. Secy. ORERA – Odisha REAT

Key Points:

• The Odisha Real Estate Regulatory Authority (ORERA) penalized Citicon Engineers Ltd. with a ₹20 lakh fine for constructing a project without proper registration and occupancy certificate.
• Citicon Engineers contested the ruling, claiming they were not the actual promoters of the project "The Prestige," which was developed by another company, Aryan Infra Projects Pvt. Ltd., and argued that the regulatory authority failed to consider essential documentation supporting their claim.
• The appellate authority has remanded the case back to ORERA for reconsideration, emphasizing the need for thorough document verification in future cases involving promotership disputes.

Background: This case arises under the Real Estate (Regulation and Development) Act, 2016 (RERA), which mandates that real estate projects be registered and comply with regulatory standards to protect consumer interests.

What's Next: The ORERA is expected to reassess the evidence and documentation regarding the project's ownership and compliance before making a new determination by November 24, 2025.