Transfer of Funds to Society by Builder

Q: Builder charged all owners lump sum for Repair & Maintenance Fund and also Sinking Fund.
Now prior handing over Builder showing excess expenditure (almost double the collection) on maintenance and asking additional funds. alternately he is going to transfer from sinking to maintenance fund.
During last two years when he was carrying out maintenance, he never intimated any member about excess expenditure nor did he give accounts of the expenditure.

Mr.badhan Kumar Ray, Apartment Resident

26th June 2016

Legal in Pune

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Replies (3)

I request a Lawyer to answer the query . Thanks.

santhanam, Property Manager

28th June 2016

Comment

Hi Anand,
Interest-free maintenance charges shall be payable to any association appointed/ nominated by developer for common services. You can, therefore, seek a clarification from the developer as to the name of the association which has been formed by the developer for common services and the amount may have to be paid to such an association. If the amount is being demanded by the builder, you can seek an assurance from the builder that the amount is being received by the builder on behalf of such an association. You can, however, question the demand for capital replacement fund which does not find mention in any of the clauses of the allotment letter.

Keshavrao Jedhe, Pune

27th June 2016

Comment

Hi,
Ideally, new construction requires very less maintenance but it is another way round. Builders charge maintenance at the rate of Rs 7 to Rs 10 psf which is a very princely amount. A clause in the agreement also gives a right to increase this amount in future if there is an increase in maintenance cost. It is advisable to discuss the same with the builder and association members.

anand modak, Pune

27th June 2016

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