The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) is looking to set up a system for grading of developers and projects in measurable parameters. The initiative is aimed at assisting the homebuyers in making an informed decision. The authority has appointed rating agency CRISIL to set up this system.
In consultation with CRISIL, UP-RERA has designed a grading framework and it has also taken inputs from industrial development authorities, homebuyers associations, promoters associations and other stakeholders to develop this system. Currently, the proposed grading framework has been made available for feedback by the stakeholders.
Grading will be done annually and these grades to be assigned by RERA will help the prospective homebuyers in acquiring knowledge of the credentials of the promoters and the quality of the projects which they want to invest into. The grading would be assigned on a scale of 1 to 5 from lowest to highest. The grading will be given on the basis of promoter’s track record, adherence to the completion timelines, credentials of the developers, analysis of legal and financial risks, besides the quality of the project.
The grading system is intended to assess the promoters and projects registered with UPRERA and rate them to help the homebuyers in taking the right decision while they zero in on any particular project to purchase. The grading scale which will assess track record of the promoters and will also help in understanding the issues like delays in possession, the reasons of any major slowdown in UPRERA registered projects and the performance of developers.