Odisha RERA Empanels Forensic Audit Firms to Probe Irregularities in Real Estate Projects

Bhubaneswar, August 28, 2025 

In a bid to enhance transparency and safeguard consumer interests in the real estate sector, the Odisha Real Estate Regulatory Authority (ORERA) has issued a key order empowering forensic audits for projects plagued by suspicions of mismanagement and financial irregularities.

The order, dated March 26, 2025, and issued under Section 37 of the Real Estate (Regulation and Development) Act, 2016, outlines ORERA's initiative to establish a structured mechanism for scrutinizing real estate developments. The authority, headquartered in Bhubaneswar, aims to promote the registration and orderly growth of the sector while ensuring efficient and transparent sales of plots, apartments, and buildings.

At the heart of the order is Section 35(1) of the Act, which grants ORERA the power to summon promoters, allottees, or real estate agents to provide written information or explanations about their affairs. The authority can also appoint individuals to conduct inquiries into these matters.

To address growing concerns, ORERA has empaneled a select group of forensic audit firms. These experts will be deployed in cases where there are allegations or apprehensions of unusual project delays, irregular practices, mismanagement, diversion of funds, pre-launch bookings, or similar issues. The audit teams will perform detailed examinations of project accounts and submit comprehensive reports to ORERA for appropriate action under the Act's provisions.

"The responsibility lies with the project promoter to fully cooperate by furnishing all relevant documents and books of accounts as requested by the audit team," the order states. Any failure to comply will be treated as a violation of Section 35, attracting penalties under Section 63 of the Act.

This development comes amid increasing reports of delays and financial discrepancies in real estate projects across Odisha, which have often left homebuyers in limbo. Industry experts view the order as a proactive measure to curb malpractices and restore confidence among investors and consumers.

ORERA's move aligns with the broader objectives of the 2016 Act, which was enacted to regulate the real estate industry nationwide, protect buyers from exploitation, and ensure timely project delivery.

Stakeholders in the sector, including developers and consumer advocacy groups, have been urged to familiarize themselves with the order. Promoters are advised to maintain meticulous records to facilitate smooth audits if required.

For further information, the full order is available through ORERA's official channels at their Tosali Bhawan office in Satya Nagar, Bhubaneswar.

This initiative underscores ORERA's commitment to fostering a robust and accountable real estate ecosystem in Odisha, potentially setting a precedent for other states grappling with similar challenges.