The Maharashtra Real Estate Regulatory Authority (MahaRERA) is planning to start grading of real estate projects in the state based on a set criterion in a bid to make it easier for homebuyers to select a right project.
This will be the first such initiative by any RERA authorities in the country. To begin with, MahaRERA aims to provide ratings on projects and then grade the project promoters as well.
Homebuyers usually do not have clarity and information about various permissions in the housing sector, the reliability of the developer, and the intricacies of various contracts. The authority is aiming to help homebuyers in decision making and boost their confidence.
MahaRERA has prepared a detailed proposal to set the criteria and procedure to determine such rating of real estate projects. It has invited suggestions and objections of various stakeholders on the same by July 15.
This grading mechanism will be applied to projects registered after January 2023. The rating of the projects will be announced twice a year and based on the information from October 2023 to March 2024, Maharera is aiming to prepare the first rating list available from April 2024.
As part of its exercise to empower homebuyers, MahaRERA has already made it mandatory for developers to use Quick Response (QR) codes containing all project information with all advertisements from August 1.
According to the authority, the decision to start grading of real estate projects is aimed at improving transparency, ensuring the rights of the homebuyers are protected, and reliable information is available about the project in which they have invested or looking to invest.
MahaRERA will consider several factors to determine the rating of any project. These factors will include financial viability of the project, technical approvals from competent authorities, pending litigations, and various compliance reports to be updated on the MahaRERA portal within the prescribed period.
The authority will implement the process of determining this rating in a phased manner as the criteria for such grading is known to developers and sufficient time is provided for the sane.
The objective information of the project is expected to be announced including project details, location, developer, facilities etc in the first phase.
In technical details, Commencement Certificate (CC), quarterly, annual compliance report, booking percentage, etc will be provided. Financial details will include financial liabilities, financial progress of the project, annual audit certificate etc. Legal details will show if there are any cases against the project, complaints, warrants issued by MahaRERA etc.
Four important snapshots of the project will be released in the second and final phase based on the above information to determine the ranking. It will contain project overview, technical, financial, and legal details of the project.
The information, based on which the ranking will be decided, will be publicly available to homebuyers. The ranking will be made public from April 20, 2024.
