The Maharashtra Real Estate Regulatory Authority (MahaRERA) announced on September 4, that it will start grading real-estate projects from April 2024 in the state. MahaRERA says it will help homebuyers make informed decisions.
"In the first phase, MahaRERA shall aim at objectively listing real-estate project information, making it easier for homebuyers to compare different projects and make informed decisions. All projects registered after January 2023 shall be eligible for grading," reads an order issued by MahaRERA.
The grading matrix will be updated every six months of the financial year. "The first period will be from October 1, 2023 to March 31, 2024. The grading matrix shall commence once the due date for uploading the last quarterly progress report (QPR) is done by April 20, 2024," the order said.
The grading shall be automatically done through MahaRERA's IT Solution MahaCRITI, on the basis of the information submitted by developers.
How will the grading be done?
MahaRERA has broadly chosen four parameters. Information uploaded by developers, like technical, financial and legal details, and project overview will be the basis, it said.
"Information about these parameters will be displayed to the homebuyers for making informed decisions," the MahaRERA order said.
MahaRERA officials had sought suggestions from the public and stakeholders until July 15, 2023. The parameters were chosen after receiving the suggestions.
In August 2023, MahaRERA had also appealed to developers to form dedicated grievance redressal cells within their respective firms to provide after-sales assistance.
This grievance cell by individual developers will also be one of the criteria for MahaRERA to grade real-estate projects.
What led to the grading process
The Bombay High Court, while hearing a case relating to a stalled Mumbai real- estate project on February 3, 2023, had asked the state government whether MahaRERA can rate or classify developers to ensure that people can make better and informed decisions regarding the choice of a developer.
The grading process picked up after this query by the high court. In Maharashtra, more than 40,000 projects have been registered since MahaRERA came up in May 2017 and more than 12,000 projects have been completed. More than 5,000 projects have their registrations lapsed.
Also read: All about grading real estate projects by RERAs
The Uttar Pradesh RERA is also considering grading real-estate projects.
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