Team Herald
PANJIM: The Real Estate Regulatory Authority (RERA) has directed a builder to transfer a corpus fund of Rs 16.95 lakh to a housing society.
The builder had collected the corpus fund but was refusing to transfer it to the Co-operative Housing Society Ltd, Dhavlim-Ponda, after its formation. The corpus fund, in particular, is a reserve fund meant to be used only in exceptional cases involving substantial expenses. If utilised, the builder is required to transfer the residual amount to the society.
The complainant had prayed that the builder be directed to refund the corpus fund amounting to Rs 16,95,750 along with interest at the rate of 11.10 per cent, collected from purchasers of the flats within a period of three months. He had also urged the Authority to direct the builder to complete the structural defects as per the agreement, and further to direct the respondent to refund Rs 1.90 lakh to the Society towards the construction of a badminton court and a second soak pit.
The respondent submitted that he was compelled to incur expenses, including maintenance of the building and electricity charges. He claimed that the complainant was not entitled to any reliefs.
He further informed the Authority that the corpus fund had been utilised for the formation of the society and contributions towards shares and other miscellaneous expenses.
Real Estate Regulatory Authority member Vincent D’Silva found that the builder had unauthorisedly retained and utilised the corpus fund without any justification.
The complainant was therefore entitled to a refund of the corpus fund amounting to Rs 16,95,750 with interest due from the respondent.