UP RERA IFMS Rules 2026: 12th Amendment to Regulation 47 Explained

UP RERA IFMS rules have changed. In mid-July 2026, the Uttar Pradesh Real Estate Regulatory Authority notified the 12th Amendment to its General Regulations 2019, overhauling the Interest-Free Maintenance Security (IFMS) framework under Regulation 47. Every promoter must now hold IFMS in a separate designated bank account, invest it in the highest-interest fixed deposit, charge it at standardized project-wise rates, and hand the entire corpus to the RWA at project handover with a full audit trail. This guide breaks down exactly what changed and what builders, promoters and Associations of Allottees must now do.

1. What is IFMS (Interest-Free Maintenance Security)?

Interest-Free Maintenance Security, or IFMS, is a one-time security deposit that a promoter collects from each allottee in a real-estate project. Unlike monthly maintenance charges, IFMS is a corpus meant to be preserved for the long-term upkeep of the project — a financial cushion for major repairs and replacement of common infrastructure once residents take over. Because it is a security (not a fee), it is not consumed month to month; it is held, grown, and eventually transferred to the residents’ body that manages the society.

For years, the way promoters collected and parked IFMS was loosely governed. Deposits often sat in the developer’s general project account or operational account, rates were set arbitrarily at the time of booking, and the corpus rarely earned anything for the people it was meant to protect. The 12th Amendment to UP RERA’s General Regulations 2019 is a direct response to that gap.

2. The 12th Amendment to General Regulations 2019 — Regulation 47 overhaul

The Uttar Pradesh Real Estate Regulatory Authority notified the 12th Amendment to its General Regulations 2019 in mid-July 2026, restructuring the IFMS framework under Regulation 47. The changes are structural, not cosmetic. In short, the Amendment does four things: it ring-fences IFMS in a separate designated bank account, forces the money to earn the highest available interest, standardizes how much can be charged by project type, and makes the promoter transfer the entire corpus — with a complete audit trail — to the RWA at handover. A key intent is to end the earlier practice of inflating an IFMS figure at the time of booking and then defending it later.

3. Separate designated bank account with a scheduled bank

Every promoter must now hold IFMS in a separate designated bank account maintained with a scheduled bank. The deposits can no longer remain in the general project account or the developer’s operational account. Promoters are required to collect the IFMS amount from the allottee at the time of registration of the sale, lease or sub-lease deed and deposit the entire amount into this dedicated account. This is a distinct requirement from the RERA construction-funds escrow — IFMS now gets its own ring-fenced account so it cannot be co-mingled with day-to-day project cash flow.

4. Mandatory investment in the highest-interest fixed deposit

The funds can no longer lie idle. Regulation 47 now requires the promoter to invest the IFMS corpus in the highest-rate fixed deposit available at that scheduled bank, so the money grows for the eventual beneficiaries rather than for the builder. In practice, this means a promoter should obtain quotations from banks and place the corpus in the FD offering the highest interest rate — protecting the deposit while maximising returns for the residents who will ultimately own it.

5. Standardized, project-type-wise IFMS rate schedule

The Amendment ends the free-for-all on rates. A standardized, project-type-wise rate schedule has been notified so that IFMS can no longer be an arbitrary number decided at booking:

By fixing a band for each project type, UP RERA restricts the practice of creating an inflated IFMS figure at the time of booking and then justifying it afterwards. Promoters now have a clear, defensible basis for what they can charge.

6. Collection at the time of deed registration

IFMS must be collected from the allottee at the time of registration of the sale, lease or sub-lease deed — and the entire amount deposited into the separate designated account with the scheduled bank. Tying collection to the registration event creates a clear, auditable point at which the security enters the ring-fenced corpus.

7. Transfer of the entire corpus to the RWA at handover

At the time of handing over the common areas of the project, the builder must transfer the entire IFMS corpus to the RWA or Association of Allottees. The transfer is not just a lump sum — it must come with a transfer statement stating the total amount collected and the expenditure incurred, together with a complete audit trail prepared prior to handover. After the transfer, the RWA maintains the accounts going forward.

8. Unit-wise records, audit trail and final balance statement

The builder must now submit to the RWA the unit-wise collection and expenditure details, the audit trail, and the final balance statement. This unit-level transparency lets the Association verify exactly what was collected against each unit, what (if anything) was spent, and the closing balance being handed over — closing the door on disputes about missing or under-transferred corpus.

9. Permitted use of IFMS funds by the RWA

Once the corpus is with the Association, its use is restricted. The funds can be used only for the repair or replacement of common areas and shared facilities — lifts, parks, generators, and shared equipment of the society. IFMS is not a general operating fund; it is a preserved reserve for the capital upkeep of the things residents share.

10. Compliance checklist for promoters and builders

To stay compliant with the 12th Amendment under Regulation 47, a promoter should ensure each of the following: open a separate designated IFMS account with a scheduled bank, distinct from the project and operational accounts; obtain bank quotations and place the corpus in the highest-interest FD; charge IFMS strictly within the notified project-type rate band; collect at the time of deed registration and deposit the full amount immediately; maintain unit-wise collection and expenditure records with an audit trail throughout; and at handover, transfer the entire corpus to the RWA with a transfer statement and final balance statement. Getting the account structure, FD investment and record-keeping right from day one is far easier than reconstructing an audit trail at handover.

If you are a promoter or an Association of Allottees and want the IFMS account structure, FD compliance and handover documentation set up and reviewed correctly, FylFlix’s compliance experts can help you build an audit-ready trail end to end.

Related reading

For homebuyers facing project delays or builder disputes, see our detailed guide on filing a RERA buyer complaint in Haryana. For the latest on project timelines, read our note on the MoHUA advisory on Force Majeure project extensions.

Frequently Asked Questions

What is IFMS under UP RERA?

IFMS (Interest-Free Maintenance Security) is a one-time security deposit collected by the promoter from each allottee, meant to be preserved as a corpus for the long-term repair and replacement of a project’s common areas and shared facilities. Under the 12th Amendment to UP RERA’s General Regulations 2019, it is governed by Regulation 47.

What changed in the UP RERA 12th Amendment to Regulation 47?

The Amendment requires IFMS to be held in a separate designated bank account with a scheduled bank, invested in the highest-interest fixed deposit, charged at standardized project-type-wise rates, collected at the time of deed registration, and transferred in full to the RWA at handover with a complete audit trail and final balance statement.

What are the standardized IFMS rates?

As notified, IFMS is ₹20 to ₹100 per sq.ft for group housing, ₹40 to ₹50 per sq.ft for commercial projects, and separate notified rates for plotted developments.

When must a promoter collect IFMS?

IFMS must be collected from the allottee at the time of registration of the sale, lease or sub-lease deed, and the entire amount deposited into the separate designated account with a scheduled bank.

Who controls IFMS after project handover?

At the handover of common areas, the builder transfers the entire IFMS corpus to the RWA or Association of Allottees, along with a transfer statement, unit-wise collection and expenditure details, an audit trail and the final balance statement. The RWA then maintains the accounts.

What can IFMS funds be used for?

After transfer, the RWA may use the funds only for the repair or replacement of common areas and shared facilities — such as lifts, parks, generators and shared society equipment.

Conclusion

The 12th Amendment to UP RERA’s General Regulations 2019 turns IFMS from a loosely-held booking figure into a ring-fenced, interest-earning, fully-accountable corpus that belongs to residents. For promoters, the compliance bar is now concrete: a separate designated account, the highest-interest FD, notified rates, collection at deed registration, unit-wise records, and a clean transfer to the RWA at handover. Builders who set this up correctly from the start will hand over projects without disputes — and residents will finally get the maintenance reserve the law always intended.

Disclaimer: This article is for general information and public awareness. It is not legal advice. Regulations, rates and forms are amended from time to time; readers should verify the current position on the official UP RERA portal before acting. Reference: UP RERA General Regulations 2019 (12th Amendment), Regulation 47 — up-rera.in.