As the dispute as to who should pay the funds is not in Court, the association has to wait till the verdict of Court.
Non payment of corpus by landowner
Dear Sir The landowner in our society is not paying corpus to association and citing that builder is supposed to pay. The builder says that it has made many attempts but now it's the association which should take it up directly with landowner. The landowner has put a legal case on builder on paying corpus to association. The real intention of landowner seems to avoid paying corpus at all. Please advice!
Asked 3 years ago in Property Law
Religion: Hindu
6 Answers
The association can take legal action to recover the corpus amount from the flat owner, it may be the builder of the land owner or the buyer/member of the association.
Then can refer to clauses that enables the association to take legal action for recovery of the corpus funds or maintenance amount etc from its members.
- Generally, at the time of selling the flats, the builder collects maintenance funds from each buyer, which is not shown in the basic selling price, and the said maintenance fund collected from each apartment owner is deposited as a corpus fund.
- After forming society, this Corpus /maintenance Fund also came into the hands of society, the housing society can use this corpus fund amount for major repairs, maintenance, reconstruction, structural addition or redevelopment.
- Hence, if the builder has not take the corpus fund from the landowner , then the society can recover the the same from them.
Society should sue the landowner and builder for recovery of corpus amount
You need to contest the case against landowner and builder in the said matter
Dear Client,
The liability of the payment of the corpus fund lies on the builder, after collecting the amount from the apartment buyers.
If the builder does not pay, you may send a legal notice to the builder and if that doesn't work, file a complaint in the consumer court as well as RERA. It's a civil case, not to be disposed of in the criminal court.
Please note that the corpus fund amount cannot be paid in installments by the builder.
Thank you.
