UP-RERA mandates separate bank account for IFMS deposits in real estate projects
The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has mandated that promoters collect Interest Free Maintenance Security (IFMS) funds in a separate bank account, as per amendments to the UP-RERA General Regulations, 2019. This regulation requires that IFMS be deposited at the time of property registration, with specific rates set for different project types, and the funds must be used exclusively for the maintenance of common areas. Promoters must also transfer the entire IFMS corpus to the Residents’ Welfare Association upon handing over common areas, ensuring transparency in fund management.