COVER STORY/ECOSYESTEM
MahaRERA Announces Grading Criteria for Housing Projects
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has finalized the criteria for grading housing projects. Housing projects registered after January 23 will remain eligible for this grading.
The grading, announced every six months on the MahaRERA website, is set to commence from April 24. It will consider projects from October 1 to March 24 for its evaluation. This rating system will be known as the MahaRERA Grading Matrix. The rating will be determined automatically by MahaRERA’s technology department based on information provided by developers. Therefore, it is the sole responsibility of developers to provide accurate information to MahaRERA and keep it up-to-date in accordance with regulatory provisions.
MahaRERA Announces Grading Criteria for Housing Projects
Developers are required to provide objective information about their projects as part of the regulatory process. Since the rating will be based on this information, it will enable homebuyers to make informed and reliable decisions. MahaRERA is the first authority in the country to implement project ratings in this manner. MahaRERA will aim to rate the project first and then the promoter.
A comprehensive consultation paper outlining the criteria for determining this rating was published by MahaRERA on June 16 on its website, inviting suggestions and objections. The deadline for submitting suggestions and objections was July 15. MahaRERA has made its final decision based on the feedback received and prioritizing consumer interests.
Developers are required to update Forms 3, 4, and 5 on the website every three months and annually. This ensures that homebuyers are informed about the project’s status. Additionally, if any issues arise for the homebuyer, appointing a Dedicated Grievance Redressal Officer (DGRO) and making their name and contact number public at the project site and on the website have been given the highest priority.
Various factors will be considered when determining the rating, including the project’s financial viability, technical approvals from competent authorities, and ongoing litigation.
The evaluation will take place in two phases. The first phase is expected to release objective project information, including location, developer, and facilities, as well as technical details like Commencement Certificates (CC), quarterly and annual compliance reports, enrollment percentages, and project completion status, if applicable. Additionally, financial details such as the project’s financial burden, progress, and annual audit certificate will be included. Legal details, including lawsuits, complaints, and Maharera-issued warrants, will also be publicly available during this phase.
The second and final phase will release four key snapshots of the project based on the previously mentioned information to determine the ranking. These snapshots will provide a comprehensive overview of the project, encompassing technical, financial, and legal details. This information will be available to the public, and the ranking will be announced after April 20, 2024.
