India, July 15 -- To reduce disputes over maintenance funds, the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has introduced a new framework for the collection, management and transfer of Interest Free Maintenance Security (IFMS) funds. Developers must deposit the IFMS amount collected from homebuyers into a separate bank account and transfer the entire corpus, along with accrued interest, to the Residents' Welfare Association (RWA) or the Association of Allottees at the time of project handover.

Under the amended regulations, promoters must collect the IFMS amount from allottees at the time of registration of the sale, lease or sub-lease deed and deposit it in a separate designated account with a scheduled bank. The funds mu...