Our Building in Pune has around 150 flats which were sold by the Builder over a period of 3 years where the cost of the flats has varied significantly (almost doubled). As per Bye-law 13(c),
Sinking fund is now required to be related to the cost of construction of each flat at the rate decided at the meeting of general body subject to minimum of 0.25% per annum of the construction cost of each flat excluding the proportionate cost of the land.
So, I believe that Sinking Fund calculation should be as per the construction cost quoted in the Agreement between the Builder & first Buyer and not as per the AREA of the flat.
However, the current committee has calculated the Sinking Fund based on the "current construction cost per sqft" in our area for the current year and multiplied it with each flat's area.
What is the correct method for calculation of Sinking Fund? Should be based on the construction cost as listed in the Agreement or based on the product of flat area & current construction cost in the vicinity?
Please advise. Thanking in anticipation.
