UP-RERA's New IFMS Rule: Is Your Deposit Safe?

UP-RERA now requires builders to keep homebuyers' maintenance deposits in a separate bank account. This stops developers from misusing your IFMS money and ensures it's used only for society upkeep — not builder expenses.

Here's what happened: UP-RERA has directed all registered developers to maintain Interest Free Maintenance Security (IFMS) funds in a dedicated, separate escrow-type bank account.. Previously, builders could pool IFMS money with general project funds, making it easy to misuse homebuyers' maintenance deposits for other expenses.. The new rule increases transparency — builders must account for every rupee of IFMS collected and cannot divert it for construction or operating costs..

What you should do: Ask your builder or RWA for the dedicated IFMS account number and verify it exists as a separate account — not a shared project account.. Check your sale agreement for the IFMS amount charged — typically ₹50–₹100 per sq ft — and confirm you received an official receipt.. File a complaint on the UP-RERA portal (up-rera.in) if your builder refuses to share IFMS account details or cannot prove separation of funds..

IFMS is your money, not the builder's. Under RERA, you can demand a full statement of IFMS collections and expenditures at any time — builders who refuse can be penalised.