UPRERA Introduces Comprehensive IFMS Framework To Enhance Transparency And Protect Homebuyers
Lucknow, July 15, 2026: The Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has officially notified the 12th Amendment to the Uttar Pradesh Real Estate Regulatory Authority (General) Regulations, 2019. This new amendment, inserted under Regulation 47, establishes a comprehensive regulatory framework governing the collection, management, transfer, and utilization of Interest Free Maintenance Security (IFMS). The upgraded regulations are set to come into force immediately upon their publication on the official UPRERA website, UPRERA said in a press release.
Under the newly amended regulations, real estate promoters are strictly required to collect the IFMS amount from allottees at the time of registering the sale, lease, or sub-lease deed. These collected funds must be kept separate from other capital and deposited directly into a designated bank account opened with a scheduled bank. To ensure safety, transparency, and optimum financial returns on the maintenance corpus, promoters are mandated to invest the funds in the highest interest-bearing fixed deposits after actively obtaining quotations from eligible banks.
The regulatory authority has explicitly prescribed project-wise IFMS rates determined by the nature, size, and specific category of each real estate development. For multi-storey group housing projects, the mandated rates range from ₹20 to ₹100 per square foot, depending on the category of the dwelling unit. Commercial projects will see fixed IFMS amounts of ₹40 per square foot for non-central air-conditioned spaces and ₹50 per square foot for central air-conditioned projects, with separate distinct rates also designated for plotted residential and plotted commercial developments.
A key highlight of the amendment is the mandatory transfer of the entire accumulated IFMS corpus to the Residents’ Welfare Association (RWA) or the Association of Allottees. This transfer must occur precisely at the time the promoter hands over the common areas of the property. Alongside the financial corpus, promoters must deliver a detailed transfer statement that outlines unit-wise IFMS collections, comprehensive details of past expenditures, a clear audit trail, and the exact final balance being handed over.
Strict guidelines have been instituted for the post-transfer utilization and auditing of these funds. The regulations stipulate that the IFMS corpus must be used exclusively for the operation, maintenance, repair, and replacement of common areas, equipment, and services meant for the collective benefit of the residents. Furthermore, the RWA or Association is legally required to maintain proper books of accounts and have the utilization of the corpus audited by a Chartered Accountant. This audit report must be formally presented before the Annual General Meeting (AGM) or Extraordinary General Body Meeting (EGBM) within three months of its finalization.
Emphasizing the vital importance of these new protective measures, UP RERA Chairman Sanjay R. Bhoosreddy said, “The objective of this amendment is to ensure complete transparency, accountability and financial discipline in the management of Interest Free Maintenance Security (IFMS) funds. Homebuyers contribute these funds for the long-term upkeep of common facilities, and it is essential that the corpus remains secure and is utilized only for its intended purpose. The new provisions will safeguard the interests of allottees by ensuring proper collection, investment, transfer and audited utilization of IFMS funds. This reform will strengthen the role of Residents’ Welfare Associations and promote better maintenance and sustainable management of real estate projects across Uttar Pradesh.”
