Builders Beware: Maharera’s Push For Quality Assurance In Real Estate Construction, Public Input Invited

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Mumbai, 4th December 2023: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has unveiled a consultation paper on its website, aimed at enhancing the quality of construction and ensuring better housing for consumers.

As per the announcement made in the second week of October, MahaRERA’s consultation paper focuses on developing a Framework for Quality Assurance Reporting in the real estate sector. The primary goal is to address construction defects without relying solely on the defect liability period. The public has been invited to provide suggestions for effective implementation until December 31. MahaRERA initially reached out to developers’ self-regulatory bodies on October 13, urging them to submit instructions by October 31, but the response has been limited.

The consultation paper, crafted through discussions with industry experts, global best practices, and alignment with the Prime Minister’s Housing Scheme, encourages public participation. Suggestions can be submitted until December 31 via [email protected].

MahaRERA emphasizes the need to rectify defects within the defect liability period, which spans five years from the house transfer date. Despite consumer protection, MahaRERA believes a more proactive approach is essential. The initiative aims to establish standardized procedures and construction standards.

During the initial transition phase, the rating system will be optional for developers, and those adopting it will be recognized on the MahaRERA website. This recognition is expected to enhance the credibility of developers and projects in the eyes of potential customers. Following the transition, the rating system will become mandatory for all developers.

The real estate sector’s construction quality has long been a topic of concern, prompting the introduction of Quality Assessment and Assurance Systems globally. Maharera’s consultation paper aligns with global best practices and relevant provisions of the Pradhan Mantri Awas Yojana.

One crucial provision involves the appointment of third-party quality monitoring agencies for construction quality checks. These agencies, selected transparently through a tender process, will be listed on MahaRERA’s website.

The proposed system entails inspections in three phases—during the final stage of construction, before handover, and post-occupancy to identify and rectify defects. MahaRERA plans to involve third-party agencies in the inspection of project records and reports at various construction levels. This includes assessing internal arrangements and external standards used for quality tests.

Maharera Chairman Ajoy Mehta emphasized that the third-party quality control system, initially optional, will become mandatory after the transition period. The system aims to benefit homebuyers, ensuring a smoother process and enhancing the sector’s overall credibility.