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housing projects: MahaRERA plans mechanism to monitor housing projects’ quality


The Maharashtra Real Estate Regulatory Authority (MahaRERA) is planning to soon introduce rules to monitor quality of housing projects with a view to safeguard interests of homebuyers.

The new mechanism is expected to help resolve disputes between developers and homebuyers arising due to quality issues.

“In Maharashtra, 1.6 crore citizens are waiting for homes and about 14 lakh homes are under construction. Hence the government recognises the importance of the real estate sector and good housing. While the foundation of regulation will remain the same, more emphasis will be laid on the issue of timely construction, delivery and quality of housing, as well, in order to make good housing available to all,” said Ajoy Mehta, Chairman, MahaRERA.

More than an impediment, the new system will ensure seamless delivery of housing projects, he said while addressing a NAREDCO summit.
The regulatory authority recently finalized the criteria for the proposed grading of housing projects in the state to be known as MahaRERA Grading Matrix. The grading of projects will be undertaken to make it easier for homebuyers to select the right project.MahaRERA is the first real estate authority in the country to undertake the exercise to rate the projects this way and is planning to grade the project initially and then the promoters.Housing projects registered after January 2023 will be eligible for the rating to be announced every six months starting April 2024 and for this, details from October 1 to March 2024 will be taken into consideration.This rating will be determined automatically by the technology department of MahaRERA based on the information shared by the developers with the regulator. Therefore, it is the sole responsibility of the developers to provide proper information to the regulator and update it as per regulatory provisions.

The regulator had released a detailed consultation paper seeking suggestions and objections regarding the criteria and the rating exercise on June 16. MahaRERA has now taken the final decision based on the suggestions and objections received in this regard and giving priority to the interests of the consumers.

The developer is expected to update information about the project every three months and annually to ensure the homebuyer is aware of the project’s status. Also, the developer is mandated to appoint a dedicated grievance redressal officer to resolve any issues that homebuyers may have.

Apart from this, various factors including financial viability, technical approvals from the competent authority, and ongoing litigation will be considered while determining the project’s rating.

This evaluation will be done in two phases. The objective information of the project including project details, location, developer, facilities etc is expected to be released in the first phase.

In technical details, commencement certificate (CC), quarterly, annual compliance report, booking percentage, whether the society has been formed if the project is completed.


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