The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has consolidated its regulations, bringing together 12 amendments made up to July 13, 2026, creating a comprehensive framework that covers builders, homebuyers and real estate agents. According to reports from PTI, the amended provisions to the UP RERA (General) Regulations, 2019, incorporated under Regulation 47, came into effect the same month. As reported by Mint, UP RERA Chairman Sanjay R Bhoosreddy stated that the amendment aims to ensure transparency, accountability and financial discipline in the collection, investment, transfer and utilisation of IFMS funds. The consolidated regulations now provide a comprehensive regulatory framework aimed at strengthening transparency, accountability, financial discipline and protection of homebuyers in the real estate sector, as stated by UP RERA on August 18.
Under the revised rules, promoters are mandated to collect the IFMS amount from allottees at the time of registration of sale, lease or sub-lease deeds and deposit the entire amount in a separate designated bank account with a scheduled bank. According to the new regulations, collected funds must be invested in fixed deposit (FD) scheme offering the highest rate of interest among eligible banks after obtaining quotations, with the objective of ensuring the safety of the corpus, transparency in its management and maximum returns. As reported by Mint, UP RERA has prescribed project-wise IFMS rates based on the nature and category of developments. The consolidated regulations now specify that 70% of the money deposited by buyers into the collection account will be transferred daily to the separate account and 30% to the transaction account. Under Regulation 53, promoters must maintain three project accounts — Collection, Separate and Transaction Accounts — in the project district, with no lien on the Collection or Separate Account.
For group housing projects, the IFMS has been fixed between ₹20-100 per square foot depending on the category of residential units. According to the new framework, commercial projects will attract IFMS of ₹40 per square foot for non-central air-conditioned developments and ₹50 per square foot for centrally air-conditioned projects. As reported by Mint, separate rates have also been specified for plotted residential and commercial projects, ensuring proper classification across different property types. The consolidated regulations also mandate that project-related loan money will also have to be deposited into the separate account. Project loans will be credited to the Separate Account, which will operate under a defined payment protocol, ensuring proper financial management throughout the project lifecycle.
UP RERA has mandated that promoters transfer the entire IFMS corpus to the Residents' Welfare Association (RWA) or the Association of Allottees at the time of handing over the project's common areas, along with the right to operate the account. According to the new regulations, promoters will also have to provide a detailed transfer statement containing unit-wise IFMS collections, expenditure incurred, audit trail and the final balance being transferred. The amendments state that the IFMS fund can be used only for the operation, maintenance, repair and replacement of common areas, equipment and shared services, and must be maintained separately from other maintenance charges in a dedicated bank account. The consolidated regulations now specify that the money can only be used for maintaining, repairing and making necessary changes to common facilities. Project loans will be credited to the Separate Account, which will operate under a defined payment protocol.
The consolidated regulations introduce several new transparency measures for homebuyers. Builders will now have to issue the Offer of Possession in the format prescribed by UP-RERA and buyers who have purchased property in an unregistered project will be able to file complaints online with UP-RERA under Regulation 24. However, they will have to provide additional details about the project and builder. Builders must also maintain an updated profile on the UP-RERA website with any changes in company details, including directors, partners, trustees, financial information and income tax returns. Real estate agents will need a training certificate for registration and renewal and must maintain proper records with submission of details of their transactions every three months. The rules also specify late fees of ₹15,000 for QPRs, ₹25,000 for annual audit reports and ₹10,000 for quarterly reports submitted by agents. Transfer charges for succession and assignment have also been standardised: ₹1,000 when the successor of a deceased allottee is a family member, and capped at ₹25,000 when the successor or assignee is not a family member.
The amended regulations introduce stricter norms for project reporting and advertising to curb misleading practices. Promoters must provide details of key project professionals, including the architect, engineer, and chartered accountant, as well as the customer relationship manager and a dedicated contact or toll-free number. Quarterly Progress Reports (QPRs) must be filed through these professionals, accompanied by digitally signed certificates, to improve the accuracy and accountability of project progress reporting. Promoters must also create and regularly update their profiles on the UP-RERA portal, including details of directors, partners, or trustees, the latest financial statements, and income-tax returns. Project name must match the sanctioned plan, enabling homebuyers and the regulator to establish a clear link between the project and its approved layout or map. Promoters must submit a digital connectivity plan with their project registration application and provide four dedicated email addresses for registration, administrative matters, consumer complaints, and communication with allottees and agents.
