Corpus has been collected for benefit of members so that when society is formed it would ha Edina reserves

2)builder ought to pay interest on the corpus as he has used money for 5 years 

3) however rarely do builders pay any interest on the corpus 

4) you can complain against builder before RERA and seek orders to direct builder to pay interest on corpus 

1. There is no law which bars the transfer of interest component as well while handing over the Association charges.

2. However there must be a specific stipulations in regard thereto.

3. In absence of such clear terms at the time of refunding corpus the interest os not be transferred.

There is no such law which gives builder right not to pay interest 

2) sale deed entered into with builder would be containing a clause regarding corpus fund payable by flat owners and interest if any payable 

In the construction agreement,  if the builder had agreed to transfer the corpus fund along with the agreed interest,  he has to act as per the agreement.  Otherwise,  he can transfer the corpus amount to the association without any interest.  The obligation on the builder is purely based on the agreement and non otherwise. 

It is a common law. Corpus is maintained for future contigencies. Any interest accrued becomes a part of corpus. Builder is liable to refund balance amount corpus including interest.  Taking away interest is both a civil wrong and criminal offence. 

This is not defined, in this regard but you can claim the interest based on the date from the maintenance of the society has been taken over by the resident welfare Association and in principle builder has to refund the entire interest free security amount to the resident welfare Association along with the interest this is very bad practice that the builders do not refund the amount received as interest free maintenance security to the resident welfare Association at the time of handing over the Township for the management by the resident welfare Association in case you are facing this problem then the answer is go to High Court and file petition against the Builder to get the entire amount including their interest rate at the commercial rate the presumption that the interest is not payable by the Builder is wrong this can only be taken up to the time the Builder was maintaining the society

No interest is also yours.  You can claim the same by filing complaint at consumer court

The builder has to handover the corpus fund along with the interest earned on same to the society. If he fails a consumer complaint for same can be filed.

No there is no such law builder cannot keep corpus and interest earned on same . 

What does the agreement stipulates?

Regards 

G.Rajaganapathy Lawyer 

High Court of Madras 

The Builder shall transfer the corpus fund to the Association with interest.  if builder refused Society should approach before district consumer forum. 

Corpus + interest refundable. Hope no clause for retention of interest by builder. File suit.

If your association is having the details of the interest earned out of the corpus fund held by the builder, then it may very well demand the same by issuing a legal demand notice, after which the association may file a money recovery suit also against the builder demanding him to pay the same.

The corpus fund is collected for some specific purpose and the interest earned out of such funds is to be utilised for the specific work pertaining to the expenses towards the major repairs of the  apartment complex  hence the builder cannot deny returning the interest component to the association for any reason.

The association may initiate proper legal steps for recovery of the same.

The interest earned on the corpus fund belongs to the society and it must be paid back to society along with corpus fund.

You can make complaint against builder with RERA for claiming the interest over corpus fund.