Ram Chandra (Audit & Rec Operation) 10 November 2016

Corpus fund

Please advise on below matter. Trusted Builder accumulated Corpus fund from Apartment buyers with every sale proceeds in past 4 years. In agreement he smartly mentioned to pay him corpus fund but never mentioned what he will do with it but just mentioned that he will pay it back once society will be handover to RWA. Now he is intentionally delaying the project with minor works remaining and not paying the corpus back to society which was formed 1year back. Also he has clearly said No to Interest he had gained with owners money. Interestingly since corpus is not considered to be an income hence he is smartly gaining profit on top of it without paying any taxes.

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3 Replies

adv.bharat @ PUNE (Lawyer) 10 November 2016

Please mentioned name of state where you have formed the society?

Ram Chandra (Audit & Rec Operation) 10 November 2016

Dear Bharat,

This matter persist in Telangana State.

SHARAD CHANDRA DANEJ (Asstt. Manager) 12 November 2016

Send a legal notice to builder to complete construction of remaining works.
It is the responsibility of builder to form cooperative housing society after completion of all works and possession to the society.
If he fails to do the same members can form cooperative housing society . 
You can move consumer forum against builder for completion of construction, execution of conveyance, providing common amenities as per the agreement. 
You can seek compensation for mental torture members have undergone.  
You can claim the corpus fund from the builder. Its his duty.

Mention all the points in the legal notice.