UP-RERA To Introduce Rating System For Developers; Project Health Under Scrutiny
In order to help homebuyers, Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has decided to take measures that will enable them to make an informed choice when investing in residential projects in the state. The authority has announced a rating system in which a builder will be rated on the basis of its past performance of the builder, financial position and failed projects. This move will help homebuyers with all the information being provided on a single platform and prevent them falling prey to dubious developers.
The authority is also in the process of hiring a private agency to monitor the projects and will seek updates where the builder has not been able to meet the deadline for project completion. At present, over 3,000 complaints are pending with UP-RERA, out of which 80 per cent are from Noida and Greater Noida. According to RERA regulations, a builder has to submit the progress report of the project every three months. The private agency will corroborate with the builders and seek quarterly status reports from them to identify the project status and monitor the ongoing ones. It will also keep a check on escrow account to prevent diversion of funds.
Meanwhile, UP RERA has also directed the development authority of western UP to conduct a health audit of all unfinished projects. While it will be different from a financial audit, it will focus on finding the stages at which the projects are stalled and the reasons behind the same. The audited projects will be categorised into three sections — doing well, not doing well and abandoned. The authority has recommended forming a monitoring committee to revive the stalled projects. The monitoring committee will share quarterly reports with the RERA authority. The land parcels where no development work has been started will be re-allotted to other developers.