Homebuyers who are planning to buy a house in Uttar Pradesh will soon be able to factor in grades of developers and projects before choosing one. Uttar Pradesh Real Estate Regulatory Authority (UP Rera) will soon start grading projects and developers based on various 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 to developers and projects, according to set parameters. The grading would be on a scale of I to V, I being lowest, benchmarked against the parameters as set in the grading framework.
The proposed grading framework has been uploaded on the UP Rera portal (https://www.up-rera.in/index) for feedback, if any; the last date for the feedback is 13 May 2020. Based on the suggestion received, UP Rera will upgrade the grading system. According to a public notice dated 22 April by UP Rera, “The objective of the grading system, which will be done annually, is to assess the promoters and projects registered with UP Rera and rate them so that homebuyers can make an informed choice. This grading scale will help in creating a track record for promoters and better understanding of issues as delays in possession and major slowdown in the projects registered with UP Rera and the level of performance of the promoters.”
Developers also welcome the UP Rera step. “Prima facie the proposed grading system is a welcome step as it will help buyers to differentiate between good developers and bad ones, good projects and not-so-great projects. But the key is how it will be implemented. A fair and just methodology will help all the stakeholders,” said Amit Modi, director, ABA Corp., an NCR-based real estate developer.
Once the grading system is in place, homebuyers will be able to assess the information through the UP Rera website.
(Source: Livemint)
