The Maharashtra Real Estate Regulatory Authority (MahaRERA) has paused its ambitious plan to introduce a project grading system for registered real estate projects. This decision stems from the Real Estate (Regulation and Development) Act, 2016, which does not grant regulatory bodies the authority to grade projects.
A System Designed to Aid Homebuyers
Announced last year, MahaRERA’s grading initiative aimed to help homebuyers make informed decisions by evaluating projects based on four key parameters: technical, financial, legal, and project overviews. Originally slated to launch in October 2024, the system was envisioned as a way to improve transparency and guide buyers toward trustworthy developers.
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However, a senior MahaRERA official explained that moving forward without legal backing could invite complications. “While the system was designed to empower homebuyers, it falls outside our purview as a regulatory body,” the official stated.
Opposition from Developers
The grading system also faced resistance from real estate developers. Pramod Khairnar, president of the state Credai chapter, expressed relief at the decision to put the system on hold. “There is no provision for grading in the RERA Act. A system like this could indirectly encourage malpractices. We had strongly opposed it, and we are pleased with this decision,” he said.
High Court’s Role and Future Outlook
The idea of project grading gained traction after a 2023 Bombay High Court inquiry into stalled real estate projects questioned whether MahaRERA could classify developers to assist buyers. In response, the authority proposed a grading matrix to update every six months, starting from October 2024.
With over 47,400 projects registered since its inception in 2017 and over 26,800 complaints received, MahaRERA remains focused on resolving disputes and improving the regulatory environment.
