Call EGM meeting of members to pay quarterly bills from interest accrued on corpus fund 

2) you cannot use interest accrued on corpus fund without approval of members 

Dear Sir,

There was some information/notification from Ministry of Finance, Govt of India regarding the extention of financial year on 30.06.2020. However, if you are facing shortage of funds then you may use the interest part of the corpus fund. 

Legally, the interest part of the corpus fund can be used for basic expenditure to survive in the ongoing lockdown. Anyway the corpus fund remains untouched.

there is no such restriction in withdrawal from corpus fund. 

Resident Welfare Association can use principal as well as interest of the corpus collected from the members for meeting up the expenses for which corpus of funds is created. It can be used to paying regular maintenance bills. 

If a resolution is passed by the members in a general body meeting with a majority vote by members present and entitled to vote in such meeting, then pursuant to such resolution being passed, the society can use the interest to defray the maintenance expenses 

The corpus fund and the income generated from the said corpus fund shall be utilized for the purpose the corpus fund was created. 

The association bylaws may not allow this to be utilized for any other purpose. 

Hi

Yes you may use....

Go through the bylaws of your firm for limit confirmation 

Yes you can by passing resolution and taking consent of majority members

- The Interest or dividend generated from the Corpus Fund can be used for paying the light bill, servicing , cleaning and for the care of amenities etc.

- Further, the housing society can use the corpus fund amount for major repairs, reconstruction, structural addition or redevelopment.

- As per rule, the general body of the society can form its own rules and regulations with regards to the Corpus fund amount , its investment and its utilization.

- However, the Corpus fund is generally not allowed to be utilized for the attainment of the purpose; but interest or dividend on such fund can be utilized.

- Hence, as per your society by laws , you can use only the interest part of this corpus fund legally , for paying your regular maintenance bills. 

Hi

Yes, you can use the interest accrued from the corpus fund to pay the maintenance bill, subject to approval of majority of flat owners through Annual General Body Meeting .

Since the interest amount arising out of corpus is generally used for repair and improvement of facilities, it is mandatory that you seek 2/3rd majority of the flat owners through annual general body meeting for use of such monies for regular expenses. 

Hope this information is useful. 

1. The amount collected to use common expenses and facility can lawfully be expended out of its principal or interest. 

2. Interest or benefits out of investment of principal amount.is lawful money and hence the interest of this common fund can very well be used to meet increase in expenses. 

3. So act accordingly. 

1. Yes. Interest accumulated on account of Corpus Fund, may be utilized for routine Maintenance expenses, via a proper Notice -Agenda - Resolution of the General Body is passed.

2. The utilization if interest component can be set off as expenditures for Income Tax Return filing purposes.

Only thing to take care of, supply of service should not interrupt of which amount already received.

Otherwise on failure to deliver service, client will demand refund.

No bar to use coprus + interest. Rest depend of nature of business you are in and rules of company to manage corpus and its use.

Hello, 

Pass a resolution to this effect with a clause that the balance will be credited back once payment is received. 

Regardss 

Yes you can use intrest portion of corpus fund for paying regular maintenance bills of society.

The issue needs to be decided in the meeting.

You need to call for EGM of  the members and pass a resolution / obtain consent of the majority of the members.  Upon approval of the same, interest accrued on corpus fund may be withdrawn and used for the agreed purpose as decided in EGM.

What do your bye laws say on this? If there is no clause in the bye laws which disallows the use of interest component then even the interest component can be used.