Lucknow: UPRERA has introduced new rules to ensure that the Interest Free Maintenance Security (IFMS) collected from homebuyers is managed in a transparent and accountable manner.The new provisions have been notified through the 12th Amendment to the Uttar Pradesh Real Estate Regulatory Authority (General) Regulations, 2019.Under the new rules, builders must collect the IFMS amount from buyers when the property is registered and deposit it in a separate bank account. This money cannot be mixed with other project funds. It must be invested in a fixed deposit offering the highest interest among scheduled banks to keep the maintenance corpus safe while earning better returns.UPRERA has also fixed IFMS rates for different types of residential, commercial and plotted projects. Once a project is completed and common areas are handed over, builders will have to transfer the entire IFMS fund to the Residents’ Welfare Association (RWA) or Association of Allottees, along with complete records of collections, expenses and the remaining balance.The money can be used only for maintaining, repairing and replacing common facilities such as lifts, lighting, gardens and other shared services. RWAs will have to maintain proper accounts and get them audited every year by a chartered accountant.UPRERA chairman Sanjay R Bhoosreddy said the new rules will protect homebuyers’ money, improve transparency and help ensure better maintenance of housing projects across Uttar Pradesh.
