• Issues of corpus fund and power of Association to remove members

Dear Learned friend,
Our RWA is registered under Tamilnadu Socities Act and Apartment acts.
Our builder is yet complete the project.
Though the Environmental Clearance is yet to be got-a case us pending in Supreme Court- many have taken possession in the absence of EC, PC and OC from CMDA.
But we have formed the Association and registered with available members and also enrolling new members.
The builder has started returning the corpus fund collected by him from individual owners, in instalments. 
In the above background I have few doubts :
1. Can a member or a non member can stop the builder from returning the corpus fund to association?
2. Can an Association remove a member from membership or suspend him for a period for not following by laws of association? And also can association with hold the water supply to that particular flat as the project has only Borewell water supply & stop him from using common facilities like club house etc?
3. In case of a non member- since all owners are automatically become members- can the above facilities be stopped.
We have too much views in GBMs and all think they are Lawyers and know the law.

Hence kindly explain in detail as what the law says and also how to arrest these type of non co operation by some individuals.
Thanks for sparing your valuable time.
Krishnan KV 
Asked 3 years ago in Property Law
Religion: Hindu

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4 Answers

1) you cannot stop builder from returning corpus fund

2) you can suspend member for violating bye laws

3) you cannot disconnect water supply or stop member from using common faculties

4) if member fails to repay society dues take recovery proceedings as provided in your bye laws

5) you can charge interest for delay in making payment

Ajay Sethi
Advocate, Mumbai
82096 Answers
5157 Consultations

5.0 on 5.0

1. No, it can not since the RWA is entrusted with this job which other member or nonmember of it can not oppose.

2.Removal of members would depend on the bye laws of the RWA and by no other means.Withholding water supply is a criminal activity which under no circumstances can be done.However you can restrain entry into club house.

3. same as above.

Devajyoti Barman
Advocate, Kolkata
22341 Answers
343 Consultations

5.0 on 5.0


You can not stop the builder from giving back the corpus fund.

and yes you can suspend a member for violation the provisions of the bye laws and that action will also be taken in furtherance of the procedure laid down in the bye law.

Also, you can not disconnect the water supply and can not stop some one from using the common facilities.

In case of any dispute between the society and the member you may also raise the dispute before the arbitrator for the final disposal of the same.


Anilesh Tewari
Advocate, New Delhi
17863 Answers
324 Consultations

5.0 on 5.0

1. A non-member can instruct the builder to return the corpus to the association, but a member should not raise an objection to this.


a) On the Death of an Owner. If before demise, title to the Apartment had legally been

bequeathed/transferred, the Legatee(s) shall automatically continue as Member(s). In the

case of Joint Owners, the surviving Owner shall continue as Member;

b) On an Owner selling, gifting, exchanging or otherwise disposing off the Apartment;

c) On a Trust, or Registered Company, winding up its affairs.

The association cannot discontinue the provision of basic amenities to the member

3. The non-members do not have the rights of a member.

You may go through the government guidelines on the bye laws of the society for all such further clarifications.

T Kalaiselvan
Advocate, Vellore
72170 Answers
1078 Consultations

5.0 on 5.0

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