How is advance maintenance charges different from IFMS?
This is a common question that pops up at the time of possession.
IFMS stands for Interest free maintenance security.
The same is a statutory one time deposit and is paid once (generally at possession) to the builder by the buyers.
The builder keeps this amount in its custody till an association of owners is formed.
IFMS needs to be transferred to Association of owners (or RWA) once formed. However, interest earned on this amount is not passed on to the association/buyers.
Advance maintenance charges on the other hand accounts for the maintenance charges that builder incurs while maintaining the project before the liability gets shifted to association of owners. Builders generally demand an advance maintenance charge for 6 months to 2 years in one go on the pretext that regular follow up with owners is not required. Please refer one of our previous article where we discussed prevalent maintenance charges in Noida.
It is critical for buyers to ensure that in the final account statement, IFMS is mentioned exactly as paid. Sometimes builders use the unsuspecting buyers to their benefit by quoting a smaller IFMS amount in the statement so that they have to pay less to RWA once formed.
Comments/Feedback invited.
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Last Updated on May 24, 2015 by Go4Reviews
The under mentioned letter addressed to the RWA is self-explanatory. Under the circumstances narrated in the email, please advise the action to be taken by the affected Resident at the earliest.
Thanks a lot.
Smt. ABV Vijayalakshmi, Noida
From: “srinivasa rao”
Sent: Sun, 16 Jul 2017 20:18:16
To: “Cc: GARDENIA”
Subject: WHY YOU ARE DEALING WITH THE GARDENIA MANAGEMENT WITH KID GLOVES FOR THE RECOVERY OF I.F.M.S.?
IT IS MORE THAN 5 YEARS, GARDENIA ‘GRACE’ FLATS HAVE BEEN GIVEN POSSESSION BY THE REALTOR. HOWEVER, HE HAS NOT TRANSFERRED THE I.F.M.S. OF NEARLY 50% OF THE ALLOTTEES, A WHOPPING AMOUNT INDEED WITHHELD BY THE REALTOR. WE HAVE LOST HUGE AMOUNT ON THE INTEREST COMPONENT ALSO ACCRUED ON THIS HUGE AMOUNT HAD IT BEEN PAID IN FULL BY THE REALTOR AT THE TIME OF HANDING OVER MAINTENANCE ITSELF.
1. WHAT STEPS HAVE BEEN TAKEN BY THE R.W.A. SO FAR FOR THE RECOVERY OF THIS SUBSTANTIAL SUM FROM THE REALTOR?
2. WHY THE R.W.A. HAS BEEN SOFT-PEDALLING THE ISSUE WITH THE BUILDER?
3. AS PER THE RULES IN VOGUE FRAMED BY THE NOIDA DEVELOPMENT AUTHORITY, I.F.M.S. SHOULD BE COLLECTED BY THE BUILDER WITHOUT FAIL FROM ONE AND ALL WITHOUT ANY EXCEPTION AND SHOULD BE PROMPTLY TRANSFERRED BY HIM AT THE TIME OF HANDING OVER MAINTENANCE UNFAILINGLY.
4. WHETHER OR NOT R.W.A. BROUGHT THIS FAILURE ON THE PART OF THE BUILDER TO THE NOTICE OF NOIDA DEVELOPMENT AUTHORITY TO TRANSFER THE ENTIRE SUM TO THE R.W.A.? IF NOT WHAT PREVENTED THE R.W.A. IN TAKING UP THIS ISSUE WITH THE AUTHORITY MAY PLEASE BE EXPLAINED IN DETAIL? WHAT UNDERSTANDING REACHED BETWEEN THE REALTOR AND THE R.W.A. ON THIS CRUCIAL ISSUE?
5. WHY THE R.W.A. HAS NOT INITIATED LEGAL ACTION TO RECOVER THE ARREARS FROM THE REALTOR SO FAR? WHY THE R.W.A. COMPROMISED ON THIS VITAL ISSUE GIVING RISE TO SPECULATION?
6. IT IS VERY EASY TO FILE A CASE IN NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION (N.C.D.R.C.) TO RECOVER THIS AMOUNT FROM THE REALTOR AND THE COMPELLING REASONS FOR NOT DOING SO MAY PLEASE BE ENLIGHTENED.
7. AT THE END, YOU ARE ADVISED TO MEET THE INSTALLATION EXPENDITURE OF WATER SOFTENING PLANT FROM THE I.F.M.S. FUNDS INSTEAD OF TAXING THE ALLOTTEES WHO ARE ALREADY OVERBURDENED WITH THE HIGH MAINTENANCE CHARGES..
I AM DISINCLINED TO PAY THIS AMOUNT DUE TO THE AFORESAID REASON.
SMT. ABV VIJAYA LAKSHMI
B–1105
0120-4315170