MahaRERA Is Putting Grading Of Real Estate Projects On Hold

MahaRERA, which had previously suggested rating Maharashtra real estate projects, has now chosen not to proceed. Regulators are not permitted to grade developments under the Real Estate Regulatory Act of 2016.

Therefore, the Property In Mumbai grading plan has been temporarily halted. Last year, the Maharashtra Real Estate Regulatory Authority declared its intention to begin rating real estate developments in order to assist buyers in making well-informed choices. Based on the data that the developers submitted, the regulatory body selected four factors. These comprised the project overview as well as technical, financial, and legal data.

Grading Real Estate Projects in Maharashtra
 

In February 2023, the Bombay High Court questioned the state government if MahaRERA could categorize or rank developers so that purchasers may make educated choices about the developer during a lawsuit pertaining to the stagnant Mumbai real estate market. About four months after the Bombay High Court raised this question, MahaRERA had put forward the grading matrix.

It was suggested that the grading matrix be changed every six months throughout a fiscal year, according to MahaRERA. The initial time frame will be October 1, 2023, through March 31, 2024.

After the last quarterly progress report (QPR) is uploaded by April 20, 2024, the grading matrix will start.  The announcement was made by MahaRERA in September 2023. Has the real estate project grading plan been postponed?

The idea to assess Maharashtra's real estate projects has now been put on hold as they are not going ahead with the plan for grading projects. How can MahaRERA being a regulatory watchdog also rate or grade projects? The Real Estate Regulatory Act does not categorically allow the same. If going ahead with grading, it might be challenged by someone in the court of law tomorrow. They do not want this to happen and hence are not rushing into anything like this.

Since the implementation of MahaRERA in May 2017, more than 47,400 projects have been registered in Maharashtra, and more than 15,600 projects have been finished. According to MahaRERA data, since its establishment, the MahaRERA has received over 26,800 complaints, of which orders have been issued in over 17,900 cases.
 

What does the Real Estate Regulatory Act say?
 

According to Section 32 of the Real Estate Regulatory Act of 2016, the Authority will offer recommendations to the relevant Government or the relevant authority, as applicable, in order to support the development and advancement of a robust, open, competitive, and efficient real estate industry.

Additionally, section 32(f) outlines steps to promote New Launch Projects in Mumbai grading on a range of development metrics, including promoter grading.

One of section 32(f)'s primary purposes, according to the MahaRERA in June 2023, is to make it easier to grade projects based on a variety of development criteria, including rating promoters (developers).

As a result, it published a consultation document inviting public comments and objections and describing the criteria for evaluating real estate proposals. The body may suggest to the appropriate Government or other body, in accordance with Section 32(f), that projects be graded according to a number of project development factors.

On September 20, Manoj Saunik, a former journalist and Maharashtra's chief secretary (CS), assumed leadership as the new head of the Maharashtra Real Estate Regulatory Authority (MahaRERA). In December 2023, Saunik, an Indian Administrative Services (IAS) official from the 1987 batch, retired as the Chief Secretary of Maharashtra. Eknath Shinde, the chief minister of Maharashtra, had him as his main counsel. Ajoy Mehta is replaced as MahaRERA chairman by Saunik.

Conclusion

The Maharashtra Real Estate Regulatory Authority (MahaRERA) recently announced a halt to the grading system for real estate projects or the Top 10 Best Residential projects in Mumbai in the state, a decision that has significant implications for developers and buyers alike. Initially intended to enhance transparency and promote quality in the real estate sector, the grading system faced criticism for its complexity and potential inconsistencies in evaluation criteria.

Moving forward, it will be essential for MahaRERA to re-evaluate the grading framework, addressing the issues that prompted its pause. A refined system could not only restore consumer confidence but also encourage developers to uphold higher standards. Ultimately, fostering a transparent and trustworthy real estate environment is crucial for the sustainable growth of Maharashtra's property market, benefiting all stakeholders involved.

For any other query or real estate solutions, contact InvestoXpert today.

CALL US: 9880083870

MAIL US: [email protected]
 

Read More: 2 BHK in Noida Extension

Read More: 3 BHK in Noida Extension

Read More: 4 BHK in Noida Extension

Read More: 2 BHK in Greater Noida West

Read More: 3 BHK in Greater Noida West

Read More: 4 BHK in Greater Noida West

Read More: 2 BHK in Noida Expressway

Read More: 4 BHK in Noida Expressway

Read More: Godrej Properties Noida

Read More: Top 10 Best Luxury Villas in Hyderabad 2024

Read Also : Top 10 Best Luxury Villas in Noida

Read Also : Top 10 Best Residential Projects in Noida

Read Also : Top 10 Best Residential Projects in Pune

Read Also : Top 5 Best Luxury Projects in Delhi

Read Also : Top 10 Best Luxury Projects in Bangalore

Read Also : Top 10 Best Luxury Projects in Gurgaon

Read Also : Top 10 Best Low Rise Apartments in Gurgaon