• Corpus Fund

Hello Sir,

We bought a flat in Jan 2019 from a previous owner who already contributed to corpus fund. In March 2019 the association passed a new by law stating that the new owners should pay corpus fund 4 times the amount what the existing owners paid. Raised it to 50000 from 12500. They are demanding that we pay 50000. We are ok for 12500 but 50000 is 4 times what everyone else paid and that rule was introduced 2 months we already purchased the apartment. Is this legal? I am in hyderabad
Asked 11 days ago in Property Law
Religion: Hindu

2 answers received in 10 minutes.

Lawyers are online now to answer your questions.

21 Answers

Hi,if the fund has already been paid in respect of the flat/unit ,it cannot be demanded again ,solely on the ground of new owner ..

Hemant Chaudhary
Advocate, Gurgaon
4553 Answers
37 Consultations

4.9 on 5.0

No, its not correct if they have passed the bye-laws in the AGM or SGM whether this rule kis registered with registered that increased in the corpus amount. Plus if it is passed after your sale deed registered date than it will be not applicable to you.


Kindly forward your date of purchase and rules applicable date.

In Which area your society is registered AP or Telgana, because we need to check their rules and Act accordingly. So minimum of range amount of Corpus funds can be tell you as per the law applicable.

Ganesh Kadam
Advocate, Pune
10116 Answers
89 Consultations

4.9 on 5.0

1. The association is for the purpose of running affairs of a housing complex and to do this its authorised to collect monthly maintenance charges. 

2  since it's a private entity it has no statutory right to levg tax or penalty of even charges on transfer of hands. 

3. Si in this case it has no right to collect 50k on any pretext. 

4. So you proceed to purchase this property.  

T. If it forces you to pay such amount you can bring the association to the Tribunal or Court under the law in which it was registered. 

Devajyoti Barman
Advocate, Kolkata
20197 Answers
286 Consultations

5.0 on 5.0

If the enhancement in paying the corpus fund has the approval of all the members of the association by passing a resolution in a general body meeting, then perhaps it may not be challenged.

Hence you may ask for a copy of the resolution or the bylaw for demanding the enhanced rate of corpus funds from the new owners and then decide about paying it or not.

Please remember that you may have to abide by the decision which has the approval of the general body.


T Kalaiselvan
Advocate, Vellore
65774 Answers
859 Consultations

5.0 on 5.0

1. If rule is passed subsequent to your purchase same cannot be retrospectively applied to you , you may challange the rule passed by society the society may ask transfer amount as applicable though cannot arbitrarily collect any other charges. 


Shubham Jhajharia
Advocate, Ahmedabad
24898 Answers
99 Consultations

5.0 on 5.0

Was flat transferred in your name in society records when new rule was introduced? 

whether resolution was passed by AGM ? 

any increase in corpus fund has to be approved by AGM 

Ajay Sethi
Advocate, Mumbai
75801 Answers
4532 Consultations

5.0 on 5.0

 - As per rule , at the time of selling the flats, the builder collects maintenance funds from each buyer, which is not shown in the basic selling price, and the said maintenance fund collected from each apartment owner is deposited as a corpus fund.

- Further, after forming society, this Corpus /maintenance Fund also came into the hands of society, the housing society can use this corpus fund amount for major repairs, maintenance, reconstruction, structural addition or redevelopment.

- Hence, the society can use the Corpus fund or its interest, for the maintenance of the society legally, which was dully transfer from the builder to the society . 

- Further , once again the society cannot collect the Corpus fund from the second purchaser , when the builder has already collected the said amount from the previous purchaser.  

- However , 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 utilisation for the betterment of its member.

- But, the demanding the hefty amount from the new purchaser is against the rule of the society Act. 

- Further, the resident/member who is aggrieved by the arbitrary and unreasonable actions of a Society can file a Suit under Section 6 of the Societies Registration Act, 1960.

- You should lodge your complaint before the registrar of the society against this invalid rule. 

Mohammed Shahzad
Advocate, Delhi
3303 Answers
39 Consultations

5.0 on 5.0

According to Section 23 of the  Societies registration Act , 2001, in the event of any dispute arising among the committee or members of the society, in respect of any matter relating to the affairs of the society, there are two ways of resolution of it: May seek redressal under the Arbitration and Conciliation Act , 1996, or May file an application in the District Court concerned and the said court shall pass necessary orders.

In your case, your predecessor already paid the corpus fund. So  you have every right to approach the district court against the illegal / exorbitant corpus fund collection.

Ajay N S
Advocate, Ernakulam
3454 Answers
68 Consultations

5.0 on 5.0

Dear Sir,

You may simply register a complaint with the following authority.


The following information is exhaustive in nature

How To Register a Complaint Against Housing Society/Any other Trust/ Professionals as defined below.




International Consumer Rights Protection Council

Consumer Court entertains consumer complaints against defective product or service.  Bima Lokpal, Lok Ayukt, Lok Adalat are also places where complaints can be filed.

If you want to file complaint against builder, insurance company, housing society, bank, educational institute, hospital, doctor, railways, municipality, airlines, transport, school, college, manufacturer, dealer, etc. you can file your complaint here on this website. The process is very simple.

Kishan Dutt Kalaskar
5462 Answers
185 Consultations

4.8 on 5.0

The bylaw passed by the society is discriminatory for which you can file a complaint to the deputy registrar of societies to get it removed.

Siddharth Jain
Advocate, New Delhi
5489 Answers
61 Consultations

5.0 on 5.0

No, it is not legal but a form of extortion.


Swarupananda Neogi
Advocate, Kolkata
1696 Answers
4 Consultations

4.7 on 5.0

It's an illegal rule and can be challenged. You can file a complaint to dy registar for the aforesaid illegal rule and refused to pay the said amount

Prashant Nayak
Advocate, Mumbai
19636 Answers
35 Consultations

4.4 on 5.0

1. IF this amendment to Association's Bye-Law was duly approved and registered with the Registering Authority ONLY THEN the association may collect the enhanced Corpus Fund.

2. IF the above is not true, THEN legally the Association CANNOT collect the additional corpus fund.  Hence check the amended Bye Law of the association, before considering any legal action on association.

Hemant Agarwal
Advocate, Mumbai
4655 Answers
23 Consultations

5.0 on 5.0

Serve them with a legal notice following a consumer court complaint 

Rahul Jatain
Advocate, Rohtak
3287 Answers
4 Consultations

4.9 on 5.0

They cannot increase the amount arbitrarily. You should challenge this demand before the registrar office.

Rahul Mishra
Advocate, Lucknow
8975 Answers
15 Consultations

5.0 on 5.0

1. This is arbitrary. You can refuse to pay it.

2. Even if you do not pay the enhanced corpus fund it does not in any manner whittle down your proprietary rights.

Ashish Davessar
Advocate, Jaipur
29496 Answers
847 Consultations

5.0 on 5.0

Corpus amount is already deposited by previous owner which is one time payment.  And any amendment with the bylaws can have prospective effect and those who have already purchased the flat were bound to 12500rs if not paid by previous owner.  

Yogendra Singh Rajawat
Advocate, Jaipur
19328 Answers
25 Consultations

4.5 on 5.0

the resolution is illegal

the society cannot discriminate between its members

you will have to challenge that resolution 

Yusuf Rampurawala
Advocate, Mumbai
5197 Answers
32 Consultations

5.0 on 5.0

New buyer cannot be asked to pay corpus fund if seller have already paid the fund to society. 

Mohammed Mujeeb
Advocate, Hyderabad
16464 Answers
11 Consultations

4.5 on 5.0

No the bye law us not legal you can make a complaint against bye law with assistant registrar of societies.

Mohit Kapoor
Advocate, Rohtak
8662 Answers
3 Consultations

5.0 on 5.0

1. The new bye law was passed by the Association two months after you had purchased the said flat in the month of Jan,2019.


2. So, as per law, the said increase in corpus payment should not be applicable to you.


3. You should write to the Association and in case they do not agree then approach he Registrar of Association and finally the High Court praying for relief.

Krishna Kishore Ganguly
Advocate, Kolkata
24261 Answers
669 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer