Maintenance Fund – Non-transfer to the Housing Society

Maintenance Fund – Transfer by Builder / Promoter –

Agreements for sale with the flat owners provided that the buyers should deposit a sinking fund @ Rs.30 sq. ft for management, maintenance, repairs and upkeep of the residential building and other necessary contingencies of the housing complex during development and sale of property.

In October, 2012, the builder/promoter had handed over the flats to the owners and the management to the Residents’ Association.

However, the sinking fund of Rs.78,05,510/- were not transferred to the Association.   

The State Commission partly allowed the consumer complaint of the Residents’ Association.

HELD that failure to transfer the sinking fund collected from the flat buyers and its retention by the promoter / builder is “deficiency in service”.

Order dated 7.5.2024 of National Consumer Disputes Redressal Commission in First Appeal No.1784 of 2018 of Canon Properties Pvt Ltd  Vs. Dum Dum Club Town Residents Association Kolkata