IFMS collection by builder
Ours is a residential colony in Jaipur with 1550 plots and villas.
Project was launched in 2005 with promised facilities like, state of art club, landscaping, greenery, 24X7 security, sewerage treatment plant, water supply through pipe lines, hospital, primary schools, senior secondary school and much more.
But even after 14 years of its launching following developments and facilities are still pending and completion certificate is not yet obtained by the builder.
1. No club, Hospital, schools and Sewer treatment plants.
2. No landscaping and greenery, park areas are marked but not developed, it is only a barren land without any greenery and plantation.
3. Water supply machineries still not developed/installed and water is being supplied through tankers
4. Roads made initially with very poor quality and all of them are damaged and not usable.
Builder sold 95% properties by year 2012. Due to lack of promised facilities, so far only 60 families shifted to live.
Now builder is not maintaining the colony, it is providing only street lights in areas where people are living so connecting roads are in dark and water through tankers. Following facilities are not being provided.
1. No housekeeping / cleaning of common areas
2. Nil security. No guards at all.
3. No horticulture staff to maintain plantation done initially on road sides, they are getting dried up.
4. Altogether it is not livable so property owners are shying away to construct and shift to live.
Meantime in year 2015 residents joined together to form a registered residents welfare society (RWA). Since its inception RWA had been writing to builder for completing pending developments. And provide proper maintenance so that residents feel like shifting to live in colony. But none of the correspondence is responded by builder.
This is the scenario about maintenance.
1. Builder has collected IFMS @ Rs. 20,000/- per property amounting to a total of Rs. 3,10,00,000/- (three crores ten lakhs)
2. Only two services namely street light and water costing around rupees one lakh per month are being provided by builder.
3. Whereas if we calculate the interest on IFMS on its collective principal it comes around Rs. 2.5 Lakhs per month.
1. What is the purpose of IFMS ( Interest free maintenance security)
2. If the period of completion of project has gone too long as in our case it is 14 years since launching, and the money collected as IFMS is kept by builder. Is there any legal binding on builder to keep this fund in bank and use the interest earned for the maintenance of project?
3. What is meant by term Interest free,
(a) Does it mean builder can earn the interest on fund collected under the head of IFMS. And use it for some other purpose as per his choice but never for the maintenance of area from where it was collected.
(b) Or it means the individual who paid IFMS has no right to claim interest but any earning on collective fund under the head of IFMS has to be u
Asked 2 years ago in Property Law
Thanks everyone for giving your valued suggestions.
Please clarify following points.
1. We the RWA is planning to take over the maintenance of society with incomplete development. reason is society is not being maintained by builder and it is becoming difficult for residents to live. Later we take legal action for delayed developments.
2. Builder is not ready to handover the IFMS to RWA, Legally how we can claim it. I mean is there any rule / regulation under Rajasthan societies act that binds builder to hand over IFMS to RWA.
3. If at any point of time if builder becomes ready to do the maintenance can we legally ask builder for following arrangement.
(a) let builder keep IFMS and pay interest on this amount on monthly bases for maintenance expenses.
(b) So that residents contribute only balance of amount required for maintaining society. Because at present we are only 70 residents residing in a society of 1550 properties. And let this arrangement be for a time bound period of one year and there after builder will be bound to transfer the IFMS and maintenance to RWA.
(c) We residents want some arrangement by which IFMS fund and it's earning hereafter should be used for residents welfare and not be pocketed by builder.
please give your opinions.
Asked 2 years ago