Dear Sirs,
This is a query related to Corpus Fund:
1) I am one of the flat owner of a big residential (around 1000 flats) complex in Andhra Pradesh. We (all flat owners) paid corpus fund about Rs. 1lakh to the Developer/Builder at the time of registering the flat (Registered in 2012).
2) We (all owners) formed a Owners Welfare Association as per Apartment / Society act. So, for there are around 600 flats have been registered and around 400 residents are living in the apartment complex.
3) The Developer is still in the process of constructing the remaining flats and it will take another 2-3 yrs to complete the residential complex.
4) Home Owners Association is requesting the Developer/Builder to show the Corpus fund details and Developer is not providing any information regarding this. The Developer is referring to the following clause which is in the registration document of each flat:
"After the Developer receives the purchase price of all the residential apartments in the complex and all other amounts payable by the Purchasers there of under the respective agreements, it shall transfer to the Home Owner's Association (i) the Corpus fund collected from the Purchasers; and (ii)all original documents and title deeds relating to the Schedule Land."
Now the questions are:
a) What rights does the Owners Association have in this regard?
b) Are there any clear Apartment Acts that refer to Corpus Fund where Developer needs to share the information with Owners Association?
c) Can the Owners Association request the Developer to maintain a separate account for the Corpus Fund and share the information with the Association?
d) What are the legal options for the Owners Association against Developer since he is not sharing the information regarding the Corpus Fund?
Thanks and Regards,
Kumar.
