aishwarya (freelance writer) 29 August 2024

Can the secretary of a society deny giving corpus fund given by the developer to the individuals?

Our society is going for redevelopment. The secretary has decided to keep the corpus fund to be given by the developer upon doing the IOD. The developer has said that it will given unit holder. But the secretary has decided to keep the entire amount in the bank and use it for building the said redevelopment project in case, the developer runs away in midst of the project.

The rent that the developer is giving is low and we cannot afford current space in the same locality with the rent. Getting the Corpus Fund can help us maintain our lifestyle and needs. So, what should we do? Should we ask for our individual corpus fund or keep it with the secretary?

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Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 29 August 2024

. Now, you're wondering whether to: 1. Ask for your individual corpus fund 2. Keep it with the secretary (of the society) Before making a decision, consider the following: - Review the agreement or documentation: Check if there are any clauses specifying how the corpus fund should be utilized or distributed. - Society rules and regulations: Familiarize yourself with the society's bylaws and rules regarding corpus funds. - Communication: Have an open discussion with the secretary and other relevant parties to understand their perspective and concerns. - Legal advice: Consult with a legal expert to understand your rights and options. Based on your specific situation and the advice you receive, you can then decide whether to: - Request your individual corpus fund - Keep it with the secretary (if that's the agreed-upon arrangement) - Explore alternative solutions (e.g., negotiation with the developer or seeking mediation) Remember to prioritize transparency and compliance with relevant rules and regulations.

T. Kalaiselvan, Advocate (Advocate) 29 August 2024

The society is right in refusing to give the corpus funds to the individual owner in the redevelopment process for the genuine reasons stated by the society in this regard.

You may have to adjust with the rent amount and your own money to meet your expenses.

You may not get any relief from the court very soon i.e., at least not before two to three years if you decide to take it up legally.

In that case you will be the loser on both the sides.