Corpus find distribution
Pankaj Shetye
(Querist) 11 April 2024
This query is : Resolved
The Corpus fund provided by Builders after redevelopment of Building to society members to be calculated & distributed on old carpet area of flats or new carpet area of flats ? Or on Member wise as service Tax ?
T. Kalaiselvan, Advocate
(Expert) 11 April 2024
Corpus Fund, also known as a maintenance fund, refers to a dedicated pool of money that is set aside and maintained for a specific purpose. In the context of real estate, a Corpus Fund is created to ensure the long-term financial stability, growth, and maintenance of real estate projects.
A Corpus Fund must never be misused or embezzled by the builder or any third party for their own benefit. A detailed expense accrual with signatures and stamp has to be produced by the builder during the handover process so that the homeowners are aware of how the Corpus Fund was utilized. These expenses are registered in the annual balance sheet as well so that all residents have access to the records.
Note that the corpus fund amount cannot be paid in installments by the builder. The same redressal can be sought if the builder has misused the Corpus Fund and refuses to account for the monies swindled from the owners.
