Uttar Pradesh RERA to star-rate projects for quality
In a first in India, the Uttar Pradesh Real Estate Regulatory Authority (UP-Rera) will next year introduce a star-rating system to mark the quality of a housing project as well as the credibility of its builder.
The regulatory body has also shortlisted 10 projects in the twin cities, which it would de-register in 2019 and engage external agencies for completion.
UP-Reramember Balwinder Kumar told media the projects will be divided into five-star, four-star, three-star, two-star and one-star categories, depending on what the developer promises to deliver and its credibility in delivering the same.
The star-based system will segregate the best builders and their projects from mediocre and ordinary ones, according to him.
“The star-ranking system will also give buyers the clarity on where they can invest freely and where they should be careful. So typically, if UP-Rera gives a project a five-star mark, it will mean we have checked the previous projects of the builder and its track record in delivering them. We would have checked the funds the builder has to complete the current project as promised at the point of sale,” Kumar said.
UP-Rera has already drawn up a list of 10 projects which are now being examined for potential de-registration in 2019. “We have the mandate to de-register at least 10 builders in 2019 so that we can take over the projects, get a third party on board and facilitate completion. The builders of these projects have failed to deliver on time, and we will take this matter on priority basis,” Kumar said.
UP-Rera will also henceforth dissuade buyers from seeking refunds while driving the projects to completion. “Our two main activities so far have been to help buyers exit projects in case they wanted the same. And the second was to push the builder to deliver. However, if more and more buyers are given refunds, builders can’t complete their projects. So next year, we will focus more on delivery,” Kumar said.