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Gaurav Kapadia   22 May 2024

Query regarding society maintenance and fund corpus demand by builder

Dear Members,

I have purchased a flat 1 year back from a builder in a redevelopment project. The building comprises 50% flats owned by existing residents and 50% flats sold by the builder to new customers like myself. Initially, the builder requested a certain amount for the society's yearly maintenance, stating that he would manage the society for one year before handing it over to the members. Later, he increased this amount almost threefold, citing the need to equalize the "society fund corpus to equal the land of existing". Old society is firmed and continue with that name only. We initially agreed to pay this increased amount.

As the builder is now preparing to hand over the society, the full amount remains pending to pay  My query is:

1. Is it appropriate for the builder to demand this increased amount?
2. Which documents can we request from the society or the builder to verify that the amount collected is indeed deposited in the society's bank account?

I appreciate any guidance or advice on this matter.

Thank you,
Gaurav Kapadia


 5 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     22 May 2024

Registered Society must follow bylaw rules.

T. Kalaiselvan, Advocate (Advocate)     22 May 2024

Since the society is already existing there is no necessity for the builder to take care of the maintenance of the building, he should complete the construction, obtain OC and hand over the same to the existing society as per the redevelopment agreement, he cannot impose any new clause on his own.

You can refuse to pay the corpus fund to the builder instead you can pay the same directly to the society, however you may confirm the arrangement or the conditions of the  redevelopment agreement in this regard, clarify and then proceed as per the bylaws of the society 

Gaurav Kapadia   23 May 2024

@ T. Kalaiselvan, Advocate
Here we are not paying directly to builder but, the builder is asking us to pay directly to society.

T. Kalaiselvan, Advocate (Advocate)     23 May 2024

If you aree a new member then it becomes your duty to comply by the bylaws of society in this regard.

You would be required to pay the corpus fund as per the bylaws, but maje sure that you are paying the actual amount what others have paid earlier, the society has got no rights to demand extra amount on its own from  the new members.

Gaurav Kapadia   13 June 2024

Dear Advocate T. Kalaiselvan,

Thank you for your continued assistance.

All new members have now paid the corpus fund, equating to the overall society funds, and we appreciate your support on this matter.

The society’s management committee has appointed an agency to handle the approval process for our new memberships within the existing, fully occupied society. The agency is charging Rs. 3500 per member for document preparation, including stamp duty.

We have the following queries:

1. **Charges Assessment**: Is the charge of Rs. 3500 per member a reasonable fee for the services provided by the agency, including document preparation and stamp costs? If not, what would be considered an appropriate charge for these services?

2. **Process for Adding New Members**: What is the correct process for adding new members to an already established and occupied society? We would like to understand the necessary legal steps and documentation required to ensure compliance with applicable regulations.

3. **Direct Management by Committee**: Can the management committee handle the process of admitting new members directly, without involving an intermediary agency? If so, what would be the minimal cost and steps involved in this direct approach?

Your advice on the reasonableness of the charges and the feasibility of managing the membership approval process internally would be greatly appreciated.

Thank you for your guidance.

Best regards, GK

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