The Assam Real Estate Regulatory Authority (RERA) is contemplating the implementation of a grading system for housing projects in the state, following the recent decision made by the Maharashtra Real Estate Regulatory Authority (MahaRERA). This progressive move aims to empower homebuyers by enabling them to easily identify trustworthy developers and obtain a comprehensive evaluation of the appropriateness and caliber of different projects. The Assam RERA draws inspiration from the success of Maharashtra's initiative and seeks to replicate its benefits in the state.
In an exclusive interview with G Plus, a senior official of the Assam Real Estate Regulatory Authority (RERA) discussed the organization's plans on the condition of anonymity. The official emphasized that, as outlined in the RERA guidelines established during its formation, the implementation of a grading system for real estate projects is considered a crucial responsibility of the regulatory body. The official further revealed that RERA is currently engaged in an ongoing analysis to assess the feasibility and implementation of the grading system.
The anonymous official also expressed their opinion that it would have been beneficial if the state government had formulated a policy prior to the establishment of RERA, which could have initiated a system of "marking" real estate projects. This approach would have provided an early mechanism for assessing and evaluating the quality and credibility of such tasks.
The official emphasized that successfully implementing the grading system would necessitate a thorough examination of various aspects of real estate projects. This examination would encompass a comprehensive overview of the project, a technical assessment, financial details, and a legal evaluation. The grading system would consider several crucial factors, such as the promoter's track record of compliance, ongoing legal disputes, the quality of project financing, available amenities, the status of necessary approvals, booking percentage, financial and legal encumbrances, and audit certification. The official further highlighted that this valuable information is typically inaccessible to homebuyers or rarely provided by builders, emphasizing the pressing need for a grading system to bridge this information gap.
The official highlighted that the Assam Real Estate Regulatory Authority (RERA) receives a significant number of complaints related to parking and visitors parking in apartment complexes. The official emphasized that it is essential for any apartment to allocate 25% of the parking space specifically for visitors. Additionally, the official stated that selling parking spaces is not a legal practice and should be avoided.
The official emphasized that the implementation of the grading system would lead to the seamless resolution of these issues. They stressed that once the grading system is in place, it would effectively address and resolve these concerns. By systematically evaluating projects based on various criteria, the grading system would ensure that these issues are easily taken care of.
The official raised concerns regarding the issuance of permissions by authorities such as the Guwahati Metropolitan Development Authority (GMDA) and Guwahati Municipal Corporation (GMC). According to the official, numerous projects across Assam are in violation of building bye law norms. The official questioned the process by which these authorities grant permissions, suggesting that stricter adherence to building regulations is necessary to ensure compliance and prevent violations in future projects.
The official stated that the primary objective of introducing the grading system is to provide assistance to homebuyers in making well-informed decisions. By considering factors such as financial, legal, technical, and timely completion risks, the grading system aims to empower potential investors with a better understanding of the projects they are considering purchasing. This comprehensive evaluation will enable homebuyers to assess the risks associated with a particular project and make informed choices based on their preferences and requirements.
The Assam RERA official emphasized that if the grading system is implemented in Assam, the process will be conducted with utmost transparency. They further stated that public opinion regarding the grading system will be actively sought before commencing the process. This approach reflects the commitment of the regulatory authority to involve and consider the perspectives and feedback of the public, ensuring a more inclusive and transparent implementation of the grading system in Assam.
In Maharashtra, the grading process is set to begin from October 2023 to March 2024. The initial phase will involve grading all projects registered from January 2022 onwards. Following this, the authorities of Maha RERA intend to develop a matrix for grading promoters. The results of the first round of grading are anticipated to be announced on April 20 of the following year. These timelines indicate the planned progression of the grading system implementation in Maharashtra.
According to the Assam RERA official, the implementation of successful grading systems in countries like Singapore, Australia, and Dubai has led to notable improvements in their respective real estate environments. The official further emphasized that the grading system in Assam would also play a pivotal role in ensuring the development of superior projects. By drawing inspiration from these global examples, Assam aims to create a more favorable real estate landscape, characterized by enhanced transparency, quality, and trust.
The source revealed that the officials are currently conducting a thorough study of all aspects of the grading system, and a decision regarding its implementation is expected within the next few months. This diligent examination of the system's components demonstrates the commitment of the officials to carefully assess its feasibility and potential benefits before making a final decision.
© 2023 Rera News. All rights reserved.