Lucknow  |  July 2026

The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has introduced new regulations requiring developers to maintain separate bank accounts for Interest-Free Maintenance Security (IFMS) funds collected from homebuyers. The move aims to improve transparency, accountability, and long-term management of maintenance funds in real estate projects.

The amendment to the UP-RERA General Regulations, 2019 requires promoters to collect IFMS at the time of property registration and deposit the entire amount into a dedicated account with a scheduled bank. Developers must invest these funds in the highest interest-bearing fixed deposit after comparing eligible banking options.

IFMS rates by project category

The revised framework also specifies IFMS rates for different project categories:

  • ₹20–₹100 per sq. ft. for multi-storey residential projects, depending on unit category.
  • ₹40 per sq. ft. for non-central air-conditioned commercial projects.
  • ₹50 per sq. ft. for centrally air-conditioned commercial developments.
  • Separate rates have also been notified for plotted residential and commercial projects.

Handover to the Residents’ Welfare Association

A key provision requires developers to transfer the complete IFMS corpus to the Residents’ Welfare Association (RWA) or Association of Allottees when common areas are handed over. Along with the transfer, promoters must provide a detailed statement covering collections, expenditure, audit records, and the final balance.

The regulations further state that IFMS funds can be used only for the maintenance, repair, and replacement of common facilities. RWAs must maintain separate accounts for the corpus, keep detailed financial records, and have the fund audited annually by a chartered accountant.

According to UP-RERA Chairman Sanjay R. Bhoosreddy, the amendments are intended to safeguard homebuyers’ maintenance contributions, strengthen financial discipline, and ensure better management of residential communities across the state.

Disclaimer: This news summary is provided for general information based on regulatory announcements reported as of July 2026, and details may change over time. Godrej Realty (godrejrealty.homes) is an independent property information and listing portal; all trademarks belong to their respective owners.