MahaRERA that had earlier proposed grading of real estate projects in Maharashtra has now decided to not go ahead with it as the Real Estate Regulatory Act, 2016 does not authorise regulators to grade projects.
The Maharashtra Real Estate Regulatory Authority had announced plans to start grading real estate projects last year to help homebuyers make informed decisions. The regulatory authority had chosen four parameters based on information uploaded by the developers. These included technical, financial and legal details, and project overview.
The Bombay High Court while hearing a case relating to a stalled Mumbai real estate market in February 2023 had asked the state government whether MahaRERA can rate or classify developers to ensure that buyers can make informed decisions regarding the developer. MahaRERA had proposed the grading matrix around four months after this query was raised by the Bombay High Court.
According to MahaRERA, the grading matrix was proposed to be updated every six months in a 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," MahaRERA had announced in September 2023.
Section 32 (f) states about measures to encourage grading of projects on various parameters of development, including grading of promoters.The MahaRERA in June 2023, had stated that one of the key functions of section 32 (f) is to facilitate grading of projects on various parameters of development, including grading of promoters (developers). It had, therefore, released a consultation paper outlining the framework for grading real estate projects and invited public suggestions and objections.
Senior MahaRERA officials said that the plan to grade real estate projects in Maharashtra has now been put on hold.
