The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has notified on 13.07.2026 the 12th Amendment to the UP-RERA (General) Regulations, 2019, introducing a comprehensive framework governing the collection, management, investment, transfer, and utilization of the Interest Free Maintenance Security (IFMS). The amendment has come into effect immediately upon its publication by the Authority.
Key Highlights
Mandatory Collection through a Separate Designated Account
- IFMS must be collected from allottees at the time of registration of the sale/lease/sub-lease deed.
- The amount must be deposited in a Separate Designated Bank Account maintained with a Scheduled Bank.
- IFMS must strictly adhere to the category-wise rates prescribed by UP RERA. Chart giving applicable rates for IFMS is annexed below:
| Project Category | Carpet Area | Rate (Rs./sq. ft. carpet area) |
| Multi Story Group Housing – EWS | 30–40 sq.mts. | 20–30 |
| Multi Story Group Housing – LIG | 35–45 sq.mts. | 30–40 |
| Multi Story Group Housing – Studio Apartment | 35–45 sq.mts. | 30–40 |
| Multi Story Group Housing – MIG | 45–90 sq.mts. | 40–50 |
| Multi Story Group Housing – HIG | 90–200 sq.mts. | 50–60 |
| Multi Story Group Housing – Luxury | 200–300 sq.mts. | 70–80 |
| Multi Story Group Housing – Ultra- Luxury | More than 300 sq.mts. | 90–100 |
| Plotted Group Housing | Plots smaller than 100 sq.mts. | 20–30 |
| Plotted Group Housing | Plots larger than 100 sq.mts. | 30–40 |
| Commercial Projects – Non-Central AC | — | 40 |
| Project Category | Carpet Area | Rate (Rs./sq. ft. carpet area) |
| Commercial Projects – Central AC | — | 50 |
| Plotted Group Commercial | Plots smaller than 100 sq.mts. | 20–30 |
| Plotted Group Commercial | Plots larger than 100 sq.mts. | 30–40 |
Investment of IFMS Corpus
The collected IFMS corpus must be invested in the highest interestbearing fixed deposit, based on quotations obtained from banks, ensuring optimal utilization of funds.
Mandatory Transfer upon Handover
- Upon handing over the common areas, the entire IFMS corpus, along with operational control of the account, must be transferred to the Association.
- A detailed transfer statement containing unit-wise collections, deductions, and an audit trail must accompany the transfer.
Restricted Utilization & Audit
- IFMS funds can only be utilized for the operation, maintenance, repair, and replacement of common areas and services.
- The Association is required to maintain separate books of account and obtain an annual audit by a Chartered Accountant
Why This Amendment Matters
The amendment carries statutory force and overrides any inconsistent provisions contained in existing Builder-Buyer Agreements, Agreements for Sale, or Allotment Letters, relating to IFMS. Consequently, promoters must review their documentation and operational practices to ensure compliance with the revised regulatory framework.
The 12th Amendment marks a significant step towards enhancing transparency, accountability, and financial discipline in the management of maintenance funds under the RERA regime. Allottees should be aware of their rights related to IFMS.