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The ODISHA APARTMENT (OWNERSHIP AND MANAGEMENT) ACT, 2023

Odisha · state statute
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1 
 
 
EXTRAORDINARY 
PUBLISHED BY AUTHORITY 
 
No. 2464 ,   CUTTACK,   FRI DAY ,   OCTOBER    27 ,  202 3/KARTIKA   5,   194 5 
 
LAW DEPARTMENT 
NOTIFICATION 
The 27th October, 2023 
 
No.17564―I-Legis-41/2023/L.―The following Act of the Odisha 
Legislative Assembly having b een assented to by the Governor on dated the 
27th October, 2023 is hereby published for general information. 
                                 ODISHA ACT 8 OF 2023 
THE ODISHA APARTMENT (OWNERSHIP AND MANAGEMENT) ACT, 2023 
 
AN 
ACT 
TO CONSOLIDATE THE LAWS 
RELATING TO OWNERSHIP OF AN INDIVIDUAL APARTMENT IN A 
BUILDING WITH AN UNDIVIDED INTEREST IN THE COMMON AREAS AND 
FACILITIES AND TO PROVIDE FOR BETTER MANAGEMENT OF SUCH 
APARTMENT AND FOR MATTERS CONNECTED THEREWITH OR 
INCIDENTIAL THERETO. 
 
 BE it enacted by the Legislature of the State of Odisha in the Seventy-
fourth Year of the Republic of India, as follows:– 
 
CHAPTER I 
PRELIMINARY 
1. (1) This Act may be called the Odisha Apartment (Ownership and Management)    
 Act, 2023. 
    (2) It extends to the whole of the State of Odisha. 
    (3) It shall be deemed to have come into force on the 28th day of June, 2023. 
      2. (1) The provisions of this Act shall apply to all apartments or buildings converted    
 into apartments irrespective of whether their construction mad e before or after 
Short title,extent 
and 
commencement. 
Applicability. 
2 
 
the date of commencement of this Act on a free hold land or on a lease hold land, if the 
lease for such land is for a period of thirty years or more including the sub-lease. 
(2) All apartments used or proposed to be used for residence, of fice, practice of 
any profession or for carrying on any occupation, trade or business or for any other type 
of independent use shall be governed by the provisions of this Act. 
(3) The provisions of this Act shall not apply to a building used for the purpose of 
holding office or otherwise of a Department of Government or of a Government 
undertaking or where the building is owned and used by the owner by himself or for 
letting it out to others.  
  
    3. In this Act, unless the context otherwise requires,– 
       (a) “allottee" in relation to an apartment means the person to whom an apartment 
has been allotted, sold or otherwise transferred by the promoter and includes the 
person who subsequently acquires the said allotment through sale, transfer or 
otherwise, but does not include a person to whom such apartment is given on rent; 
 
        (b) "apartment" means a part of any property intended for any type of independent 
use, including one or more rooms or enclosed spaces located on one or more floors or 
any part or parts thereof, in a building intended to be used for residence or office or for 
the practice of any profession or for carrying on any occupation, trade or business or for 
any other type of use ancillary to the purpose so specified; 
 
       (c) “apartm ent number” means the number,  letter  or  combination  thereof 
designating the apartment in the declaration; 
 
       (d) “apartment owner” means the person or persons owning an apartment and an 
undivided interest in the common area and facilities appurten ant to such apartment and 
shall include a promoter in respect of the apartments which have not been allotted, sold 
or otherwise transferred; 
 
       (e) “association of allottees” in relation to apartment means an association of 
allottees formed or deemed to have been formed under section 15 consisting of all the 
allottees of the project acting as a group in accordance with the provisions made in bye-
laws for association of allottees; 
 
       (f) “Appellate Authority” means the Appellate Authority appointed under section 25; 
 
Definitions. 
3 
 
       (g) "building" means a building constructed on any land containing two or more 
apartments or two or more buildings in any area designated as a block, pocket or 
otherwise, each containing two or more apartments in all such buildings; 
 
     (h) “bye -laws” means by -laws made by the association of allottees in accordance 
with the provisions of this Act and the rules; 
 
      (i) “common areas and facilities” means,— 
(i) the entire land of the project or where the project is developed in 
phases, the entire land for that phase as approved by the Odisha 
Real Estate Regulatory Authority constituted under the provisions 
of the Real Estate (Regulation and Development) Act, 2016; 
 
(ii) the stair cases, lifts, staircase and lift lobbies, fire escapes, and 
common entrances and exits of buildings; 
 
(iii) the common basements, terraces, parks, play areas, open  
parking areas and common storage spaces;  
 
(iv) the premises for the lodging of persons employed for the 
management of the property including accommodation fo r watch 
and ward staffs or for the lodging of community service personnel; 
 
(v) installations of central services such as electricity, gas, water and 
sanitation, air -conditioning and incinerating, system for water 
conservation and renewable energy; 
 
(vi) the water tanks, sumps, motors, fans, compressors, ducts and all 
apparatus connected with installations for common use. 
 
(vii) all community and commercial facilities as provided in the project;  
 
(viii) all other portion of the project necessary or convenient for its 
maintenance, safety etc., and in common use; 
 
(ix) rain water harvesting structures, solid waste management, 
composting  pits and plantation or such other uses as may be 
notified by the State Government, from time to time; 
 
  (j) “common expenses” means,– 
 
(i) expenses d eclared as common expenses by the provisions of   this 
Act or by declaration or by the  bye-laws; 
16 of 2016. 
4 
 
(ii) all sums assessed against the apartment owner by the association of 
allottees or by the competent authority; 
(iii) expenses of administration, maintenanc e, repair or replacement of 
the common areas and facilities; and 
(iv) expenses agreed upon as common expenses by the    association of 
allottees; 
 
(k) “common profits” means the balance of all income, rents, profits and revenues from 
the common areas and f acilities remaining after the deduction of common 
expenses; 
 
(l) “Competent Authority” means the Competent Authority appointed under section 23; 
 
(m) “declaration” means the declaration submitted under section 9; 
 
(n) “deed of transfer of apartment” means a “deed of transfer of apartment” executed by 
the promoter or transferor in the manner as may be prescribed; 
 
(o) "Local Authority" means the municipal corporation or municipality or panchayats or 
any other local body constituted under any law for the time being in force;  
 
(p) "Occupancy Certificate" means the Occupancy Certificate or such other certificate 
by whatever name called, issued by the Local Authority permitting occupation of 
any building as provided under the relevant laws, for the time being in force; 
 
(q) “person” includes a company, a firm, and a joint family and also any association of 
persons, whether incorporated or not; 
 
(r) "prescribed" means prescribed by rules made under this Act; 
 
(s) “project” means the development of a building consisting of apartments or converting 
an existing building or a part thereof into apartments or the development of land 
into apartment for the purpose of selling all or some of the said apartments and 
includes the common areas and facilities, the development w orks, all 
improvement and structures thereon and all easement, rights and 
appurtenances belonging thereto;  
 
(t)“promoter” means,─ 
 
(i) a person, who constructs or causes to be constructed an independent 
building or a building consisting of apartments or converts an existing 
building or a part thereof into apartments and where the person who 
construct or convert is different from th e person who owns the property 
the term shall include both of them; or 
5 
 
 
(ii) any Development Authority or any other public body in respect of 
allottees of,— 
(a) apartments constructed by such Authority or body on lands 
owned by them or placed at their disp osal by the Government; or
  
(b) any co-operative housing society which constructs apartments 
for its members or in respect of the allottees of such apartments; or  
  
(iii) any other person who acts himself as a builder, coloniser, 
contractor, developer, estate developer or by any other name or claims 
to be acting as the holder of a power of attorney from the owner of the 
land on which the apartment is constructed; or  
(iv) such other person who constructs any apartment for sale to the 
general public; 
(u) “rules” means the rules made under this Act by the Government. 
 
CHAPTER II 
OWNERSHIP, HERITABILITY AND TRANSFERABILITY OF APARTMENTS 
 
      4. (1) Every person to whom any apartment is allotted, sold or otherwise transferred 
by the Promoter, whether before or after commencement of this Act, shall, subject to the 
other provisions of this Act, be entitled to the exclusive ownership and possession of his 
apartment, and be entitled to such undivided interest in the common areas and facilities 
as may be specified  in the deed of transfer of apartment and such undivided interest 
shall be computed by taking, as a basis, the built up area of the apartment in relation to 
the built-up areas of all the apartments in the building: 
 
 Provided that in case of mixed use proj ect where a building or an 
apartment has been allotted, sold or otherwise transferred for non -residential use, the 
undivided interest in the common areas and facilities of such non -residential building 
shall be such as may be prescribed.  
 
     (2) An apar tment together with its undivided interest in common areas and facilities 
appurtenant to such apartment shall  be heritable and transferable immovable property 
within the meaning of any law for the time being in force and accordingly an apartment 
owner may  transfer his apartment and undivided interest in the common area and 
facilities appurtenant to such apartment by way of sale, mortgage, lease, gift, exchange 
Apartment to 
be heritable 
and 
transferable. 
6 
 
or in any other manner what so ever in the same manner, to the same extent and 
subject to the sam e rights, privileges, obligations, liabilities, investigations, legal 
proceedings, remedies and to penalty, forfeiture and punishment as any other 
immovable property or may make a bequest of the same under the laws applicable to 
the transfer and succession of immovable property: 
 
Provided that no apartment and undivided interest in common areas and 
facilities appurtenant to such apartment shall be partitioned or sub -divided for any 
purpose whatsoever and any covenant to the contrary shall be void. 
 
     5. Each allottee or apartment owner, as the case may be, shall comply strictly with 
the bye-laws and with the covenants, conditions and restrictions set forth in the Deed of 
Transfer of Apartment and failure to comply with any of them shall be a ground for 
action to recover sums due for damages, or for injunctive relief, or both, by the 
association of allotees or in a proper case, by an aggrieved apartment owner. 
 
       6. (1) The owner of each apartment may create any encumbrance, only against the 
apartment owned by him and the undivided interest in the common areas and facilities 
appurtenant to such apartment in the same manner and to the same extent as may be 
created in relation to any other separate parcel of property subject to individual 
ownership: 
 Provided that where any such encumbrance is created, the apartment in 
relation to which such encumbrance has been created shall not be partitioned or sub -
divided. 
(2) No labour performed or material furnished with the consent, or at the request, 
of an apart ment owner or his agent or his contractor or sub -contractor, shall be the 
basis for a charge or any encumbrance under the provisions of the Transfer of Property 
Act, 1882, against the apartment or property of any other apartment owner not 
expressly consent ing to, or requesting, the same, except that such express consent 
shall be deemed to be given by the other apartment owner in case of emergency repairs 
thereto. 
 
(3) The labour performed and material furnished for the common areas and 
facilities, if duly a uthorized by the association of allottees in accordance with the 
provisions of this Act, or the bye -laws, shall be deemed to be performed or furnished 
with the express consent of each apartment owner and shall be the basis for a charge 
or encumbrance under  the Act aforesaid against each of the apartments and shall be 
subject to the provisions of sub-section (4). 
Compliance 
with  the 
covenants      
and bye-laws. 
Encumbrances  
against 
apartments. 
4 of 1882. 
7 
 
(4) In the event of a charge or any encumbrance against two or more apartments 
becoming effective, the apartment owners of the separate apartments may remove their 
apartments and the undivided interest in the common areas and facilities appurtenant to 
such apartments from the charge or encumbrance on payment of the fractional or 
proportional amounts attributable to each of the apartments affected and  on such 
payment, the apartment and the undivided interest in the common areas and facilities 
appurtenant thereto shall be free of the charge or encumbrance so removed: 
 
Provided that such partial payment shall not prevent the person having a 
charge or any of the encumbrances from proceeding to enforce the rights, in relation to 
the amount not so paid, against any other apartment and the undivided interest in the 
common areas and facilities appurtenant to such apartment. 
(5) On any such payment, discharge o r other satisfaction, referred to in sub -
section (4), the apartment and the undivided interest in the common areas and facilities 
appurtenant thereto shall be free and clear of the charge or encumbrances, so paid, 
satisfied or discharged. 
 
      7. Any benefit of additional built–up area relevant to the apartment  due to change in 
Development Control Norms or any other reason as the case may be,  shall be passed 
on to the association of allottees.  
 
     8. (1) The deed of transfer of apartment, shall be  executed by the promoter in the 
name of the allottee or transferee along with undivided proportionate title in the common 
areas to the association of allottees, in such manner and with such particulars as may 
be prescribed, within three months from the da te of issue of Occupancy Certificate and 
shall be registered under the provisions of the Registration Act, 1908: 
 
Provided that where any allotment, sale or otherwise transfer of any apartment 
is made by the promoter to the allottee or transferee in resp ect of project completed 
before the commencement of this Act and after the commencement of the Real Estate 
(Regulation and Development) Act, 2016 but no deed of transfer in respect of the 
common areas and facilities, has been executed, the promoter shall, within six months 
from the date of commencement of this Act, execute a separate deed of transfer in 
favour of association of allottees in consonance with the provisions of this Act and rules 
and the Real Estate (Regulation and Development) Act, 2016. 
 
(2) While registering the deed of transfer as mentioned in sub -section (1), the 
promoter shall attach following documents, namely: ─ 
 
(i) Occupancy Certificate; 
Ownership 
of additional 
built-up 
area. 
Execution of  
deed of 
transfer. 
16 of 1908. 
16 of 2016. 
16 of  2016. 
8 
 
(ii) Odisha RERA registration certificate, wherever applicable; 
 
(iii) registration of apartment owners or allottees association certificate, 
if any; 
 
(iv) registered declaration and amendment thereto, if any; or 
 
(v)      Such other documents as may be prescribed. 
 
(3) The deed of transfer of apartment referred to in sub-section (1) shall contain 
such particulars as may be prescribed. 
 
(4) The promoter or the transferor (in case of subsequent transfer of apartment 
by the apartment owner) shall submit deed of transfer along with the required 
documents in duplicate within fifteen days from the date of their execution to the  
Competent Authority, who shall, after satisfying himself as to the correctness of the 
contents thereof make an endorsement thereon and return the same along with the 
enclosures to the promoter or the transferor, as the case may be for its registration 
within fifteen days from the date of return, before the registering officer empowered 
under the Registration Act, 1908. 
 
(5) Every deed of transfer along with documents referred to in the preceding 
sub-section and every endorsement thereon relating to the tr ansfer of apartment shall 
be deemed to be a document which is compulsorily registrable under the Registration 
Act, 1908 and shall be registered by registering officer accordingly. 
 
(6) Notwithstanding anything contained in the Registration Act, 1908, the 
registering officer shall forward a certified copy of the deed of transfer with endorsement 
made thereon to the competent authority to enable him to make necessary entries in the 
register maintained for the purpose. 
 
(7) Nothing in sub -section (1) prevent the apartment owners from enjoying 
their respective interest in the common areas and facilities. 
(8) Association of allottees relating to registration of common areas by 
transfer deed includes the persons who are owners of the apartments before the date of 
the commencement of this Act, and the proportionate share of title on the common area 
transferred in favour of such owners shall be deemed to have been transferred in favour 
of the association of allottees. 
 
(9) No deed of transfer of apartment in favour  of allottees shall be executed 
before registration of the association of allottees as per Section 15.  
 
16 of 1908. 
16 of 1908. 
16 of 1908. 
 
9 
 
CHAPTER III 
DECLARATION 
 
9.(1) A declaration shall be submitted by the promoter to the Competent 
Authority in respect of the building, whether constru cted before or after the 
commencement of this Act, within 30 days of issue of Occupancy Certificate, in such 
form and in such manner as may be prescribed. 
 
(2)Where the Apartments have already been handed over to the apartment 
owners before commencement of  this Act, and the promoter of such apartment is 
unable to submit the declaration which is beyond his control, the Competent Authority 
shall, after giving opportunities of hearing to the promoter and association of the 
owners, allow the association of allo ttees to submit the declaration in such form and in 
such manner with such particulars as may be prescribed. 
 
(3) The declaration referred to in sub -section (1) and sub -section (2) shall 
contain the following particulars, namely:– 
 
(i) details of the land inclu ding the right, title and interest thereon on which the 
building is constructed and encumbrances, if any, over such land and whether 
the land is free hold or lease hold; 
(ii) approved plan of the project from the Authority Competent to approve the said 
plan; 
(iii) description of the building stating the number of storeys and basements, the 
number of apartments and the principal materials of which it is constructed; 
(iv) the apartment number of each apartment, and a statement of its location, its 
carpet area, number of room s, number of bathrooms, number of balconies and 
sit outs,  immediate common area to which it has access, and any other data 
necessary for its proper identification; 
(v) description of the common areas and facilities including number of lifts; 
(vi)  value of the pro perty of each apartment, and the undivided interest in the 
common areas and facilities appertaining to each apartment and its owner for all 
purposes, including voting;  
(vii) a statement that the apartment and such undivided interest are not 
encumbered in any manner whatsoever on the date of the declaration; 
(viii) statement of the purposes for which the building and each of the apartments 
are intended and restricted as to use; 
Promoter to 
submit 
declaration. 
10 
 
(ix)  the name of the person to receive service of process together with the details of 
residence or place of business of such person;and 
(x) any other particulars in connection with the property as may be prescribed. 
 
(4) On receipt of the declaration under sub -section (1), the Competent 
Authority shall after scrutiny of the same, make an entry in the register in the manner as 
may be prescribed.  
 
(5)The declaration may be amended under such circumstances and in such 
manner as may be prescribed. 
 
 
CHAPTER IV 
RESPONSIBILITY AND OBLIGATION OF PROMOTERS AND APARTMENT 
OWNERS 
      10. (1) It shall be the responsibility of every promoter, ─ 
 
(a) handover all original documents related to the project, not limited to all title 
documents, lease certificate (in case of lease property), approved plans, as -is 
built plans, statutory compliance certificates, insurance documents, 
encumbrance documents, completed diagram of wiring, complete plumbing 
layout, equipment purchase documents, annual maintenance charge documents 
and any other documents related to the project to the association of allottees  
within thirty days of issue of Occupancy Certificate and  the association  of 
allottees shall furnish an acknowledgement to that effect who shall furnish a 
copy of such acknowledgement to the Competent Authority; 
(b) to transfer all unpaid amount collected from the allottees, security deposits, 
corpus fund, advance collected, if any, along with interest thereon, to the 
association of allottees within thirty days of issue of Occupancy Certificate; and 
(c) to furnish such other information and documents as may be prescribed . 
 
 (2) The promoter shall rectify any structural  defect or any other defect in 
workmanship, quality or provision of services or any other obligations without further 
charge, within a period of five years from handing over of possession to the allottee; 
 
      (3) The promoter shall maintain the common area and facilities till the association of 
allottees is formed in accordance with the condition laid down in section 15 and shall be 
Obligation of 
Promoters. 
11 
 
entitled to levy proportionate maintenance charge as specified in the declaration.   
 
    11. (1) The rights and responsi bilities of the allottees shall be, for the purpose of this 
Act, rights and responsibilities as assigned to the allottees under the Real Estate 
(Regulation and Development) Act, 2016 and any other rights and responsibilities 
specified under this Act.  
 
(2) The undivided interest of each apartment owner in the common areas and 
facilities as expressed in the declaration shall not be altered without the consent of two 
third of the apartment owners expressed in an amended declaration duly executed and 
registered as provided in this Act. 
 
     12. (1) It shall be the responsibility of every apartment owner, ─ 
 
(a) to abide the bye-laws of the association of allottees; 
 
(b) to use the common areas and facilities in accordance with the 
purposes for which they are intended without hindering or encroaching 
upon the lawful rights of the other apartment owners; 
(c) not to use the services areas and the basements in any manner 
whatsoever, other than those earmarked as parking spaces, which is 
meant for use by the association of allottees for rendering maintenance 
services or any other use permitted under the law; 
(d) to maintain the apartment at his own cost, in good repair and condition 
and shall not do or suffer to be done anything in or to the building, or 
the apartment, or the staircases, lifts, common passages, corridors, 
circulation areas, atrium or the compound or any part of the common 
areas which may be in violation of any laws or rules; 
 
(e) not to change or alter or make additions to the apartment; 
 
(f) to keep the apartment, its walls and partitions, sewers, drains, pipe and 
appurtenances thereto or belonging thereto, in good and tenantable 
condition, repair and maintain the same in a fit and proper condition 
and ensure that the support, shelter, etc. of the building is not in any 
way damaged or jeopardized; 
 
(g) not to put any sign -board or name -plate, publicity material or 
advertisement material, etc. on the face or facade of the building or 
Rights and 
responsibilities 
of allottees. 
16 of 2016. 
Responsibility 
of apartment 
owners. 
12 
 
anywhere on the exterior of the project, buildings therein or common 
areas; 
 
(h) not to change the colour scheme of the outer walls or painting of the 
exterior side of the windows or carry out any cha nge in the exterior 
elevation or design without the written approval of the association of 
allottees; 
 
(i) not to store any hazardous or combustible goods in the apartment or 
place any heavy material in the common passages or staircase of the 
building; 
 
(j) not to remove the outer wall and load bearing wall of the apartment; 
 
(k) to plan and distribute electrical load of his apartment in conformity with 
the electrical systems installed by the promoter and thereafter the 
association of allottees or maintenance agency ap pointed by 
association of allottees; 
 
(l) not to do any work which would be prejudicial to the soundness or 
safety of the property or would reduce the value thereof or impair any 
easement or hereditament; 
 
(m) not to add any material structure or excavate any additional 
basement or cellar; and 
 
(n) not to cause any loss or damages arising out of breach of any of the 
aforesaid conditions. 
 
      (2) The apartment owner shall be responsible for any act of omission or commission 
by its employees or tenant or employee of the tenant. 
 
      (3)No apartment owner may exempt himself from liability for his contribution towards 
the common expenses by waiver of the use or enjoyment of any of the common areas 
and facilities or by abandonment of his apartment. 
     13. Upon th e sale of an apartment, the purchaser of the apartment shall be held 
liable for all unpaid common expenses. 
 
 
 
 
 
Liability of 
unpaid 
common 
expenses at 
the time of 
transfer of 
apartment. 
13 
 
CHAPTER V 
ASSOCIATION OF ALLOTTEES 
 
      14. (1) There shall be an association of allottees for carrying out the provisions of 
the Real Estate (Regulation and Development) Act, 2016 and the provisions of this Act. 
        (2)  Notwithstanding anything contained in any agreement, deed of transfer or 
document of any nature, it shall be the joint responsibility of the promoter and allottees 
to form an association of allottees if either 50 % of allottees or 7 allottees, whichever is 
lower, have been allotted with the apartments in a project.  
         (3)  The promoter shall enable submission of application by allottees for 
registration of association of allottees to the Competent Authority in the manner as may 
be prescribed.  
       (4) There shall be a single association of allottees in the Project: 
  Provided that if the project has mixed occupancy namely residential 
apartments, commercial units and  units reserved for EWS or any other, separate 
association of allottees may be formed in the manner as may be prescribed: 
Provided further that, in every such case where separate association of 
allottees are proposed to be formed, the promoter shall deline ate clearly the 
separate common areas and facilities for each of such associations; 
Explanation.― For the purpose of this sub -section,the expression  “EWS” means a 
person belonging to the Economically Weaker Section of the society with the 
annual household income as notified by the State Government from time to time. 
       (5) An association of allo ttees formed and registered under this Act shall represent 
all the allottees, or phase of the project, as the case may be, and shall be body 
corporate by the name under which it is registered having perpetual succession and a 
common seal and shall discharg e its powers and duties and perform functions in 
accordance with the provisions of this Act, rules and the bye-laws made thereunder. 
       (6) The allottee irrespective of the number of apartments booked by him or 
purchased in the name of his family, or in the case of other persons such as companies 
or firms or any association of individuals, by whatever name called, booked or 
purchased in its name or booked or purchased in the name of its associated entities or 
related enterprises, shall be considered as one member of the association of allottees 
and shall have one voting right. 
      (7) The promoter shall continue to be the member in relation to an apartment not 
allotted or transferred, till such apartment is allotted or transferred to a person, who shall 
become the member of the association of allottees and on such allotment or transfer, 
without any further action on his part, be responsible for paying the annual maintenance 
Formation of 
association 
Of allottees. 16 of 2016. 
14 
 
charges or any other charges decided by the association of allottees. 
       (8) The promoter shall be considered as one member of the association of allottees 
and shall have one voting right irrespective of the number of unsold apartments in its 
possession and shall cease to be the member of the association ofallottees as and 
when it is not in possession and has transferred all the apartments in the project. 
      (9) An allottee shall cease to be a member of the association of allottees, if,– 
 (a) theallotment letter issued in his favour is cancelled by the promoter  at any 
point before the execution of the deed of transfer; 
 (b) the deed of transfer executed in his favour is terminated or cancelled by the 
promoter or transferee as the case may be; 
 (c) any other ground as may be provided under the bye -laws of the association 
of allottees. 
 
      15.(1) The application for formation of association of allottees shall, within six 
months from the date of commencement of this Act, be submitted, to the Competent 
Authority in such form and in such manner as may be prescribed for registratio n of 
association of allottees with the persons who have been allotted, sold or otherwise 
transferred the apartment, as members: 
 
Provided that any association of apartment owners, by whatever name called, 
which was registered under the previous law or und er the Societies Registration Act, 
1860 or any other law for the time being in force before commencement of this Act shall 
be deemed to be the association of allottees for all intent and purposes of this Act and 
such association of allottees shall bring th eir bye -laws in consonance with the 
provisions of the model bye -laws prescribed under this Act, within six months from the 
date of such commencement. 
(2)  On receipt of application under sub -section (1), the Competent Authority, after 
satisfying himself t hat the proposed association of allottees and its bye -laws is in 
consonance with the provisions of this Act and the Real Estate (Regulation and 
Development) Act, 2016 and he shall register the association of allottees for the 
purpose of this Act and issue a registration certificate, within 60 days from the date of 
receipt of such application.  
 
      16. (1) The association of allottees shall administer the affairs of the apartment and 
the property appurtenant thereto including the common areas and facilit ies in 
accordance with the provisions of this Act and the bye -laws of the association of 
allottees. 
Procedure of  
forming the  
association 
of allottees. 
21 of 1860. 
 
16 of 2016. 
Bye- laws of 
the 
association of 
allottees. 
15 
 
 
(2) No departure from variation of, addition to, or omission from the model bye -laws 
shall be made except with the prior approval of the Competent Authority: 
 Provided that the contents and particulars of the bye -laws of the association of 
allottees prior to execution of the registered conveyance deed for the apartment shall be 
such as may be prescribed.  
(3)The bye -laws framed under sub -section (1) shall pr ovide for the following, among 
other matters, namely: ― 
(a) the manner of election of an Executive Committee from among the apartment 
owners, term of office of the members of the Executive Committee, the number 
of persons constituting the Executive Committee, the powers and duties of the 
Executive Committee, method of removal from the Executive Committee, the 
powers of the Executive Committee to specify the services to be performed 
bythe Secretary and other office -bearers and specify which of the powers and 
duties granted under the bye -laws or otherwise may be delegated by the 
Executive Committee to such office bearers; 
(b) manner of calling meetings of the allottees and the number to constitute a 
quorum; 
(c) election of a President of the Executive Committee who shall preside over the 
meetings of such Executive Committee and the association of allottees; 
(d) election of a Secretary who shall maintain a minute book wherein all resolutions 
shall be recorded; 
(e) election of a Treasurer who shall keep the financial records and boo ks of 
accounts and shall be responsible for the audit of accounts; 
(f) creation of an association of allottees Fund; 
(g) custody of record relating to land of the projects including deed of transfer 
executed in favour of association of allottees; 
(h) maintenance, repa ir and replacement of the common areas and facilities and 
payments therefor; 
(i) manner of collecting from the apartment owners their share of the common 
expenses; 
(j) engagement and removal of persons employed for the maintenance, repair and 
replacement of the common areas and facilities; 
(k) the method of adopting and amending administrative rules and regulations 
governing the details of the operation and use of the common areas and 
facilities; 
16 
 
(l) restrictions with regard to the use and maintenance of the apartments and  the 
use of the common areas and facilities, as may be necessary to prevent 
unreasonable interference in the use of each apartment and of the common 
areas and facilities by the several apartment owners; 
(m) the percentage of the votes required to amend the bye-laws; 
(n) to retain certain areas of the building, subject to the approved plan, grant lease 
for commercial purposes and to utilise the proceeds of such lease as common 
expenses for maintaining the building and the common areas and facilities and, 
if any, surplus is left after meeting such expenses ,distribute such surplus among 
the apartment owners as income after obtaining prior approval of the Competent 
Authority; and 
(o) any other matter not inconsistent with the provisions of this Act relating to the 
audit and accounts and administration of the property and annual and special 
general meetings, annual reports and the like. 
(4) No modification or amendment to the bye -laws shall be valid, unless it is accepted 
by two third members of the association of allottees and with the approval of the 
Competent Authority who shall give a time period of one month, to display the 
modification suggested along with the justification in the notice board and in the visible 
place of the apartment for receipt of objections and sugge stions from the apartment 
owners. 
  (5) The rights and the responsibilities of maintaining the common areas and facilities in 
the project lies exclusively with the association of allottees or the agency appointed by 
the association of allottees, subject to  the powers of  the competent authority in this 
regard as mentioned in this section. 
 
(6)The Executive Committee or any other person authorised by association of allottees 
shall have right to access to each apartment, from time to time, during reasonable hours 
for the maintenance, repair and replacement of any of the common areas and facilities 
therein or accessible there from, or for making emergency repairs therein to prevent any 
damage to the common areas and facilities or to another apartment or apartments. 
 (7) The facilities in common areas, as located within the project, shall have proper 
signage such as parking spaces and services including but not limited to electric sub -
station, transformer, generator set rooms, underground water tanks, pump rooms,  
maintenance and service rooms, fire fighting pumps and equipments etc. and other 
permitted uses as per sanctioned plans. 
 (8) All charges towards maintenance, security, advance for maintenance, regular 
maintenance or any other charges as mentioned in the bye- laws shall be collected only 
in the bank account opened in the name of the Association of allottees in a “Scheduled 
Bank”. 
17 
 
 
Explanation.― For the purpose of this clause, the term "Scheduled Bank" means a 
Bank included in the second Schedule to the Reserve Bank of India of India Act, 1934. 
      17. All sums assessed by the association of allottees or the Competent Authority, as 
the case may be, as the share of the common expenses chargeable in respect of any 
apartment shall constitute a charge on suc h apartment and shall have priority over all 
other charges, if any, on the apartment for payment of Government and municipal dues 
and taxes and all sums unpaid on first mortgage of the apartment. 
       18.  (1) The common profits of the property shall be  distributed among, and the 
common expenses shall be charged on, the apartment owners equally irrespective of 
the undivided interest in the common areas facilities. 
        (2) Where the apartment owner is not in the occupation of the apartment owned by 
him, the liability to pay the common expenses payable in respect of such apartment 
shall be joint and several of the apartment owner and the person in occupation of the 
apartment. 
     19. (1) If an apartment owner either wilfully violates or evidently thre atens to violate 
the provisions of this Act and the bye -laws, including failure to pay the common 
expenses, which are payable by him under thisAct for a period of more than three 
months, the general body of the association of allottees concerned may, after  giving 
notice of not less than seven days to such apartment owner, may pass a resolution to 
cut off or withhold or in any manner curtail or reduce, any essential supply or service 
enjoyed by the apartment owner: 
Provided that the association of allottees shall not take any action in furtherance 
of the resolution referred to above unless a certified copy is sent each to the Competent 
Authority and to the concerned apartment owner by registered or speed post and fifteen 
days expired from the date of its bein g sent and its copy is displayed at some 
conspicuous place of the apartment. 
Explanation.―For removal of doubt, it is hereby clarified that the power to take 
action under this sub -section shall not prejudice the other rights and remedies of the 
association of allottees available under this Act or under any other law for the time being 
in force. 
 (2) On continuation of default of payment of common expenses for a period of 
one year, the arrears shall be recovered as arrears of land revenue in the manner 
provided under the Odisha Public Demands Recovery Act, 1962. 
(3)If an apartment owner is aggr ieved by an action under sub - section (1), he 
may prefer an appeal to the competent authority within a period of thirty days from the 
date of the receipt of the copy of the resolution and the competent authority shall, after 
2 of 1934. 
Common 
expenses to 
be the first 
charge. 
Common 
profits and 
expenses. 
 Association 
to    reduce  
the utilities or  
supply of 
service. 
Odisha Act 
No.01 of 
1963. 
18 
 
affording sufficient opportunity to the parties, pass such orders, as he deems fit. 
      20. (1) Without prejudice to the right of each apartment owner to insure his own 
apartment for his benefit, the association of allottees shall, if so required, by the bye -
laws or by a majority of the apartment owners, insure the property against fire, flood, 
cyclone and such other hazards under such terms and for such accounts as shall be 
required. 
(2) The policy of insurance shall be in the name of the association of allottees as 
trustee for each  of the apartment owner in the percentage specified in the deed of 
transfer and the premium payable under such policy of insurance shall be included in 
the common expenses. 
      21.  (1) Upon completion of thirty years of age of the building, the Secretar y as the 
Trustee of the association of allottees or any other office bearers as may be authorised 
in writing by the Executive Committee shall get the structural stability tested by a 
certified and a registered structural stability engineer and if he, on in spection of the 
apartment, is of the opinion that the said building is, ― 
         (a)  safe for continued occupation, he shall give a certificate to that  effect; or 
         (b) unsafe for continued occupation even after modification or repair is 
undertaken, he shall declare that the building is unsafe for living and accordingly he 
shall intimate the Secretary of the association of allottees simultaneously to the 
Competent Authority concerned as well as the Local Authority having jurisdiction over 
the area within which the said building is situated. 
        (2) where the building has been declared as safe for continued occupation under 
clause (a) of sub-section (1), the association of allottees shall , once in every five years, 
obtain a structural stability certificate from the certified and registered structural stability 
engineer and if the association of allottees is aggrieved by the opinion of the structural 
stability engineer   communicated under clause (b) of sub -section (1), the Secretary of 
the association of allottees may, within thirty days from receipt of such opinion, prefer 
an appeal before the competent authority whose decision, subject to further appeal, 
shall be final. 
       (3) The provisions regarding disposition of property, destruction o r damage 
provided in S ection 22 shall, mutatis mutandis, apply where it is required to repair the 
building or demolish the building under this section. 
 
      22. (1)If within sixty days of the date of damage or destruction of whole, or any part 
of the pr operty, or within such further time as the Competent Authority may, having 
regard to the circumstances of the case, allow and the association of allottees does not 
proceed to repair, reconstruct or rebuild, then in that event,– 
Insurance. 
Verification 
of  
structural 
stability  
of old 
building. 
Disposition of 
Property, 
destruction or 
damage. 
19 
 
 
(a) the property shall be deeme d to be owned in common by the 
apartment owners; 
(b) the undivided interest in the property owned in common which shall 
appertain to each apartment owner, shall be the percentage of the 
undivided interest previously owned by such owner in the common 
areas and facilities; 
(c) any encumbrances affecting any of the apartments shall be deemed to 
be transferred in accordance with the existing priority to the undivided 
interest of the apartment owner in the property as provided therein; and 
(d) the property shall be subject to partition in a suit filed by any apartment 
owner, in which event, the net proceeds of sale together with the net 
proceeds of the insurance on the property, if any, shall be considered 
as one fund and shall be divided among all the apartment owners in 
equal to the percentage of undivided interest of each apartment owner 
in the property after paying out all the respective shares of the 
apartment owners to the extent sufficient for the purpose and all 
charges on the undivided interest in the property owned by each 
apartment owner. 
(2) In the event of damage caused to any service or utility line of an 
apartment or of any other sort of damage that may be a cause of concern to other 
apartment owners or to the association of allottees, the owner of the apartment  where 
such damage is caused shall repair or rectify or replace or make good such event within 
five days in case of minor repair and within one month in case of major repair. 
(3)The magnitude of damage shall be as mutually agreeable between the 
owners of t he apartment and in case of any difference of opinion the decision of the 
Executive Committee of the association of allottees shall stand final. 
            (4)  The liability of making good the damage lies with the apartment owner 
where the damage has occ urred and if the apartment owner fails to rectify the damage 
within the time prescribed in sub -section (2), the Executive Committee of the 
association of allottees shall proceed to rectify the same immediately and the cost of 
same shall be recovered from t he 

Excerpt shown. Open the full act in Lexace.

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