IFMD stands for Interest-Free Maintenance Deposit. It is a one-time, lump-sum security deposit collected by the builder from every single homebuyer before handing over possession of their flat.

 

Its primary legal purpose is to act as a permanent financial cushion (a corpus) to fund major, long-term structural repairs—such as facade restorations, lift replacements, and firefighting system overhauls—so the society does not go bankrupt when heavy maintenance is required.