4:00 AMEconomic Times Realty
UP-RERA mandates separate bank account for IFMS deposits in real estate projects
Summary
UP-RERA has amended its rules to create a formal framework for collecting, holding, transferring, and using Interest Free Maintenance Security (IFMS) funds in registered projects. Promoters must park IFMS in a separate bank account and transfer the full corpus to the RWA or association of allottees when common areas are handed over.
Why it matters
It changes the balance of power in post-handover maintenance by securing resident-controlled funds and constraining builder discretion over IFMS.