Separate Bank Accounts, Transparent Fund Management & Stronger RWAs for Better Community Maintenance.

UP-RERA Introduces New IFMS Rules to Protect Homebuyers’ Maintenance Funds.

The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has introduced the 12th amendment to its General Regulations, 2019, establishing a transparent framework for managing Interest Free Maintenance Security (IFMS) funds in real estate projects. Promoters must now collect IFMS at the time of property registration and deposit the entire amount into a separate bank account with a scheduled bank. The funds must be invested in the highest interest-bearing fixed deposit and later transferred in full to the Residents’ Welfare Association (RWA) or association of allottees when common areas are handed over. The amendment also prescribes standard IFMS rates for residential, commercial, and plotted developments. RWAs will be required to maintain separate accounts, keep detailed financial records, and conduct annual audits by a chartered accountant. According to UP-RERA Chairman Sanjay R. Bhoosreddy, the reform aims to ensure transparency, accountability, and the long-term protection of homebuyers’ maintenance funds while strengthening community management across Uttar Pradesh.