MahaRERA to start grading real estate projects

June 22, 2023: The Maharahtra Real Estate Regulatory Authority (MahaRERA), proposes to introduce a grading system for real estate projects in Maharashtra. According to the Real Estate (Regulation and Development) Act, 2016, under Section 32 (f), a key function of the MahaRERA is to grade projects on various parameters of development. This also includes grading of promoters.

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MahaRERA grading: Advantages

Realty projects vary in terms of quality, location and amenities. This initiative will help homebuyers assess the quality of a project and will be useful for especially those people who are not well-versed with technical details such as approvals. However, according to the MahaRERA, homebuyers should note that real estate project grading is not a guarantee for a project.

MahaRERA grading proposal

The MahaRERA has prepared a consultation paper framework for grading of real estate projects in Maharashtra that will be rolled out in phases.

Phase 1: Information disclosure phase

This will help potential buyers to compare different projects and make suitable decisions.

Project details: Location, developer, amenities and other relevant details
Technical details: Status of various approvals like commencement certificate, promoters’ quarterly and annual compliances, booking percentage, status of formation of society etc.
Financial details: Financial encumbrances, financial progress of projects, annual audit certificate etc.
Legal details: Litigations and complaints against the project, warrants issued, legal encumbrances etc.

Phase-2: Project grading phase

According to the MahaRERA, when the real estate sector has had more time to mature, it is proposed to introduce a grading system to rate the projects and subsequently, promoters on the basis of the above-mentioned and other suitable and relevant criteria.

The phased approach to grading would allow the real estate sector to mature and develop before grades are assigned. This would ensure that the grading system is fair and accurate, and that it provides a valuable resource for potential buyers.

MahaRERA: Parameters for grading

Going forward, a matrix to grade promoters will also be considered by the MahaRERA.

MahaRERA: How will the grading be done?

The project grading will be automatically generated through the MahaRERA’s IT solution MahaCRlTl on the basis of the information submitted by the promoter.

Maha RERA: Projects eligible for grading

All projects which are registered with the MahaRERA after January 2023 shall be eligible for grading.

Maha RERA: When will the grading process start?

According to the circular issued by the MahaRERA, the grading shall be conducted bi-yearly. The first period for grading shall begin from October 1, 2023 to March 2024. The grading process shall begin once the due date for last quarter QPR uploading is done i.e. April 20, 2024.

MahaRERA grading: Public comments

The regulatory authority has called for suggestions or views from all stakeholders on the proposal mentioned in the consultation paper by July 15, 2023.

Suggestions can be emailed at [email protected] by following the below shown format. Note that the subject of communication on the email should be- Consultation paper on framework for grading real estate projects.

Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at [email protected]

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Anuradha Ramamirtham

With 16+ years of experience in various sectors, of which more than ten years in real estate, Anuradha Ramamirtham excels in tracking property trends and simplifying housing-related topics such as Rera, housing lottery, etc. Her diverse background includes roles at Times Property, Tech Target India, Indiantelevision.com and ITNation. Anuradha holds a PG Diploma degree in Journalism from KC College and has done BSc (IT) from SIES. In her leisure time, she enjoys singing and travelling.
Email: [email protected]