To protect the interests of home buyers, the Uttar Pradesh RERA is planning to rate both real estate projects and developers, Chairman Rajive Kumar said at a workshop held in Delhi on Thursday.
“RERA is meant for protecting the interests of home buyers. We would be launching a system of grading the builders and projects shortly,” he said.
Kumar said that the purpose of grading both buyers and projects is that over a period, it creates a track record for builders and signals to the public that the promoter and the project have a higher rating.
“A substantial part of the grading will relate to feedback of the people who have been associated with the project. The first round will be held around February and the first rating will be out before we complete a year in the month of September next year,” he said.
An independent rating agency will conduct the exercise.
Kumar also said that 98 projects in Uttar Pradesh have been audited so far and serious issues have been found in 20-25 of them. Another 25 have been declared as fine and the remaining have been graded as redeemable. The auditing agency has has made some recommendations for the redeemable.
“We are asking both the authorities to follow up those recommendations so that projects can move ahead. Finance is a major challenge,” he said.