UP RERA to Grade Projects & Developers

Uttar Pradesh Real Estate Regulatory Authority (UP Rera) is expected to start grading projects and developers based on parameters such as financial quality, organizational structure and certifications, track record, compliance adherence and customer feedback. Crisil Ltd has been appointed as a consultant for setting up a system and assigning the grades, according to specific parameters. Based on how a developer performs against the set parameters, grading would be done on a scale of one to five, one being the lowest. The grading of projects and promoters on various parameters of development will be done under Section 32(f) of the Real Estate (Regulation and Development) Act, 2016. The grading of promoters will involve checking its track record of executing projects on time. Other key aspects of grading will include financial strength, adherence to compliance-related matters and customer feedback. The UP Rera needs to be commended for initiating this decision. UP Rera’s proposal, which is expected to be an annual exercise, will assess promoters and projects registered with it, and declare ratings, creating a track record for promoters. It will also help define issues and their causes. For example, delays in possession or any slowdown of a project will reflect on the performance level of developers.