Sum of Rs 50000 paid by you as contribution towards corpus fund would be non refundable
association would not refund Rs 50000 to you
Corpus fund contributed by apartment owners association
Dear Sirs, In our Apartment Building there are ten flats. After handing over of all the flats to buyers, an association was formed and registered during end 2013. Since the builder has not charged corpus fund from buyers, the association has taken a decision with consensus from all owners to contribute an equal amount of Rs. 50000/- in two installments by each member towards corpus fund. Accordingly all members contributed and the same was put in a bank as fixed deposit. Now after more than five years, I happened to sell my flat and after completion of all the sale proceedings, I approached the association to refund my Rs. 50000/- contribution paid towards corpus fund and claim the same from the new owner. I would like to know in the existing scenario about the legality of my right of claiming the refund. While drafting the minutes of the proceedings of association about contribution by members, nothing was mentioned about refund. It only says that all owners/members are to contribute, where as I am neither the owner of the flat nor members of that association now. Kindly clarify. Regards, Seshadri
Asked 4 years ago in Civil Law
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9 Answers
1. Corpus fund is generally non refundable if nothing is mentioned in bye laws regarding refund of corpus fund.
2. New buyer cannot be asked to pay corpus fund if seller have already paid the fund to society.
1. Well. since the corpus fund was imposed and collected at the time when you were the apartment owner, you were liable to pay the same.
2. Now at the time of sale you have no right to claim its refund anymore.
3. The Corpus fund you paid was toward the enjoyment of your apartment which you were under legal obligation to pay and hence at the time of sale you can not demand its refund..
See legally the association shall not refund you same you should have claimed same from your buyer.
Normally corpus funds are charged for welfare of socities and they have to file annual report for it. you can file a complaint against the welfare association with registrar of societies if you think that funds have been mismanaged but remember onus of proof is on you.
This you can demand from buyer. Payment is made for flat maintiancne. Owner can change but flat will remain in same location.
You can ask from buyer to pay you if association not agree.
The members are required to pay the corpus fund.
The corpus fund is a reserve fund maintained by the association to meet the expenses of any major repair or renovation work.
Therefore it is pertinent that all the members are required to pay the corpus fund.
Since you are selling the flat, you may collect the amount you had given to the association in this connection, from the buyer in addition to the sale consideration amount to obtained from the buyer.
The society may transfer the amount kept in its deposit in the name of the buyer from the existing owner's name.
There's no point in agitating or refusing to comply with the formalities especially if you would like to have a smooth exit.
Normally Corpus fund is a fund handed over by the builder to the society. corpus fund is non refundable.
File complaint to dy registrar and seek direction against the same
