UP RERA mandates transfer of IFMS corpus to RWAs at project handover; new rules explained
The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) mandated that developers transfer the entire corpus of Interest Free Maintenance Security (IFMS) funds to Residents' Welfare Associations (RWAs) at project handover. This new framework aims to enhance transparency and accountability in the management of maintenance funds, requiring developers to deposit IFMS amounts into a designated bank account and invest them for optimal returns. The regulations, effective immediately, also stipulate that the IFMS can only be used for the maintenance of common areas and must be audited annually.