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Aiming to facilitate growth and promotion of a healthy, transparent, productive and competitive real estate sector, Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has decided to go for grading of developers and builders across the state.
As per Section 32(f) of the Real Estate Regulation Act, measures to encourage grading of projects on various parameters of development, including grading of promoters, will be done.
For this, the UPRERA had earlier appointed a consultant for setting up a system for grading of developers and projects in measurable parameters.
After inputs from development authorities, industrial development authorities, home buyers associations, promoters associations and other stakeholders, the UPRERA in consultation with its consultant CRISIL Limited (CRISIL) designed a grading framework for projects registered in RERA and the promoters.
The proposed grading framework has been uploaded on UPRERA portal (https://www.up-rera.in/index) for feedback, if any, by stake- holders by May 13, 2020.
Suggestions can be offered in the form provided for the purpose by using the link https://forms.gle/1A2RXqSqohvs2ivm9.
The UPRERA would suitably upgraded the grading system based on suggestions of stakeholders and implement them in consultation with the state government.
The grading would be on a scale of I to V in ascending order. The objective of grading system, to be done annually, is to assess promoters and projects registered with UPRERA and rate them so that home buyers could make an informed choice.
This grading scale would help in creating a track record for promoters and better understanding off issues like delays in possession and major slowdown in projects and level of performance of the promoters.
UPRERA Chairman Rajiv Kumar said on Wednesday, “RERA will assign grades to projects and promoters with a view to assisting a prospective home buyer while investing in a project. Through this, prospective home buyers will have knowledge of the credentials of promoter and quality of the projects under consideration.”
Promoter grading essentially involves assessing the promoter’s track record in executing projects and analysing associated organisational, legal and financial risks. Key parameters of promoter grading are financial quality, organisational structure and certifications, track record, compliance adherence and very importantly customer feedback.
The promoter’s capability is then benchmarked against parameters as set in grading framework.
A project’s assigned grading will serve as a benchmark against other graded projects in the state and will be applicable to all UPRERA registered projects.