The rules are quite simple. You have to register on YU forums and make an application which can be categorized under Personalization, Camera, Privacy, Battery or Audio. You can even submit Apps recently (in last 30 days) listed on PlayStore. You have to submit your apps on or before 31st December, 2014. Winners will be selected based on App Idea, Code Completeness & Functionality, UI/UX and Memory & Optimization for their Apps. Developers can submit their apps code as links on the forum thread. Grand challenge prize is 1,00,000 INR. First three winners will get recognition as their work will be part of upcoming YU phones with full credit. They will also get Yu smartphones. Top 10 entries will get YU goodies bag. Source

Micromax YU Announces AppsforYU Challenge for Android Developers - 69