Officials said that this initiative would help homebuyers make an informed decision before investing in such projects. The grading system would consider factors such as financial, legal, technical and timely completion risks, stated the order issued by the MahaRERA on June 16. The grading system would be made available on the MahaRERA website from April 2024.
“We want to give developers ample time to submit the details. Quarterly reports on all these factors will find reflection in the grading system. The assessment will be carried out from October 2023 to April 2024,” said a MahaRERA official.
The official said that the initiative would start with rating the projects and then grading the promoters later.
The move is aimed at helping homebuyers in decision making, added the official. The authority has prepared a detailed proposal for setting the criteria and procedure for determining the rating of real estate projects and it has invited suggestions and objections on the same from various stakeholders by July 15. “This grading mechanism will be applicable for projects registered since January 2023. The rating of the projects will be announced twice a year. The MahaRERA intends to draw up the first rating list, which will be available from April 2024,” an official said. Altogether 40,000 projects have been registered with MahaRERA since 2017.
The authority said that several grading mechanisms are followed globally. A grading system for projects will benefit consumers, allowing homebuyers to get a sense of projects that best fit their needs and budget.
CREDAI national vice-president Sunil Furde said that the grading system is a good initiative by the MahaRERA and it would ensure that realtors follow all the rules and regulations. “Such systems are in place in other countries, too,” he added.
Ramesh Prabhu, chairman, Maharashtra Society Welfare Association, said that it will probably be the first time that a real estate regulatory authority has taken the initiative to start grading projects and developers. “This will encourage promoters to improve their level of grading, which will be conducted by an independent agency approved by the MahaRERA,” he said. Homebuyers usually do not have clarity about the reliability of the developer, the intricacies of various contracts, and the grading system would help in this regard, said consumer activists.