NEW DELHI: The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has announced amendments to the UP-RERA General Regulations, 2019, establishing guidelines for the collection, management, transfer, and utilization of Interest Free Maintenance Security (IFMS) funds.
The 12th amendment has been added under Regulation 47 and will take effect from the date of publication on the authority’s website.
According to the updated regulations, promoters must collect IFMS from allottees at the time of registering a sale, lease, or sub-lease deed and deposit the amount in a designated account with a scheduled bank.
The funds collected should be invested in a high-interest fixed deposit after obtaining quotes from eligible banks.
The authority has set IFMS rates according to the type, size, and category of projects.
For multi-storey group housing projects, the rates range from ₹20 to ₹100 per sq ft, depending on the dwelling unit category.
In commercial projects, IFMS is fixed at ₹40 per sq ft for non-central air-conditioned projects and ₹50 per sq ft for central air-conditioned ones. Separate rates have also been established for plotted residential and commercial developments.
The amendment requires promoters to transfer the entire IFMS corpus to the Residents’ Welfare Association (RWA) or Association of Allottees upon handing over common areas.
Additionally, promoters must provide a detailed transfer statement that includes unit-wise IFMS collections, expenditure, audit trail, and the final balance being transferred.
The regulations stipulate that the IFMS corpus can be used only for the operation, maintenance, repair, and replacement of common areas, equipment, and services that benefit residents collectively.
The funds must be maintained in a separate account, distinct from other maintenance receipts.
The RWA or association is required to maintain financial records reflecting all receipts, payments, and utilization of IFMS funds.
The utilization of the corpus must undergo an audit by a chartered accountant, and the audit report should be presented at the annual general meeting or an extraordinary general meeting within three months of its completion.
Sanjay R Bhoosreddy, chairman of UP-RERA, stated that the aim of the amendment is to enhance transparency, accountability, and financial discipline in managing IFMS funds.
“Homebuyers contribute these funds for the long-term upkeep of shared facilities, making it vital that the corpus is secure and utilized solely for its intended purpose,” he emphasized.
This reform will empower RWAs and facilitate improved maintenance and sustainable management of real estate projects across Uttar Pradesh.
