Falguni Ashar 20 June 2023

Query regarding redevelopment of mhada buiding

What is the Corpus fund that a builder should give the tenants of cessed building (Mhada), at the time of redevelopment. We donot have a registered society. Our redeveloper is refusing to give corpus fund. Is corpus fund is mandatory to give by developer or is voletary ?

Also he is paying only 18,000/- as a rent

Please note our mhada building is located at lamington Road, Grant Road

Kindly advice.

Read more at: https://www.lawyersclubindia.com/experts/corpus-fund-of-cessed-building-at-redevelopment-in-mumbai-511211.asp

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1 Replies

T. Kalaiselvan, Advocate (Advocate) 21 June 2023

it is the lump sum amount collected as pre-maintenance charges from the home buyer which is not included in the total sale of the property. Corpus Fund is collected by the builder however once the housing society the developer hands over the corpus fund to the managing committee.

The members are required to pay the corpus fund. The corpus fund is a reserve fund maintained by the association to meet the expenses of any major repair or renovation work.

The redevelopment agreement signed by the tenants with the developer will contain the details about the corpus funds and other issues of concern