Uttar Pradesh RERA assigns CRISIL to grade builders and projects
The proposed grading framework has been made available for feedback by the stakeholders by 13 May 2020
The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has appointed CRISIL for setting up of a system for grading developers and projects in measurable parameters.
UP-RERA, after inputs from development authorities, industrial development authorities, home buyers associations, promoters associations and other stakeholders, in consultation with CRISIL, has designed a grading framework for the projects registered in RERA and promoters.
The proposed grading framework has been made available for feedback by the stakeholders by 13 May 2020. RERA will assign grades to projects and promoters with a view to assist a prospective homebuyer while investing in a project.
Through this grading prospective homebuyers will have a beforehand knowledge of the credentials of the promoter and the quality of the projects under consideration.
The grading will be on a scale of I to V, I being the lowest and V being the highest. Key parameters of promoter grading are financial quality, organisational structure and certifications, track record, compliance adherence and very importantly customer feedback.
The grading evaluation for projects will essentially involve assessing the promoter’s track record in executing projects as per the stipulated schedule along with adherence to timelines and analysing the organisational, legal and financial risks associated with it.
The objective of the grading system, which will be done annually, is to assess the promoters and projects registered with UP-RERA and rate them so that homebuyers can make an informed choice. This grading scale will help in creating a track record for promoters and better understand such issues as delays in possession and major slowdown in the projects registered with UP-RERA and level of performance of the promoters.