Mohan Gorups- Misused Society Maintenance Fund

Q: Mohan Gorups- Misused Society Maintenance Money.
They have taken around 1.35 -1.5 lac+ Society maintenance Fund from each member. but While handing over the society, we have noticed that they have paid their employee salary and huge Diwali bonus from this Society maintenance fund. Which definitely unethical and incorrect. They have misuse our society maintenance fund.

Tushar, Apartment Resident

5th April 2018

Builder Review in Mohan Greenwoods, Badlapur West, Mumbai

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misuse of corpus fund by builder

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Replies (4)

In Mohan Greenwoods some peoples were having leakage in flat as well and too at the time of handover. That is true builder paid their employee salary and Diwali bonus from society corpus find.

Raj,

7th April 2018

Comment

Taking legal action and appointing a lawyer are all time consuming and also lawyer fee. Cannot afford. and the way our govt. and court functions . It is very difficult.

Raj,

7th April 2018

Comment

To the best of my knowledge, your builder is legally at weak point-not forming society, holding society funds etc. It is a simply a fraud case. The builder has no right to use the corpus fund for his own benefit, He should have handover the flat to the flat owners after completion of the project. He is taking everyone for a ride. When 60% of flats are sold, the builder is expected to form the society. Consult a good property lawyer and send him a legal notice. On getting a notice itself builder MAY sort out the issue without getting into the court battle.

Sandeep Mhatre, Mumbai

6th April 2018

Comment

Hello Tushar,
Before the formation of apartment owners association, it is the duty of the builder to maintain the apartment and its amenities. Most developers provide a corpus fund for the maintenance of the apartment and its amenities. The builder collects maintenance fund from each buyer which will not be shown in the basic sales price of an apartment. The maintenance fund collected from each apartment owner is deposited as a corpus fund.
The Corpus fund is generally not allowed to be utilized for the attainment of the purpose, but interest or dividend on such fund can be utilized. You can take the legal action against the builder in the consumer forum.

Vinay Dixit, Mumbai

6th April 2018

Comment

Yes, I agreed with Vinay. In many cases, the builder keeps all income generating areas with them through the flat owners have paid for these areas. The builder has to handover the corpus fund and all common facilities to the apartment owners association. The Act gives apartment owners alone the right to generate income from common areas and facilities in the apartment. After the formation of the RWA or apartment owners association, the builder has to handover the maintenance fund or corpus fund to the apartment owners association.

Deepti Baragur, Pune

6th April 2018