New apartment projects, especially in Bengaluru, Hyderabad, Chennai and the National Capital Region, often list a corpus fund on the cost sheet, charged per sq ft or as a lump sum. Unlike monthly maintenance, it is not spent on day-to-day running; it is meant to build the association’s long-term reserve.
The builder holds the money until the association is formed and should then transfer it with interest and accounts. Delays in handing over the corpus are a frequent cause of disputes between associations and developers, and allottees can raise them before the state RERA authority.
The corpus is separate from the price of the flat, so buyers should check whether brokerage, TDS and loan calculations include or exclude it.
Example
A buyer takes possession of a 1,600 sq ft flat in Whitefield. The cost sheet includes a corpus fund of ₹100 per sq ft, ₹1.6 lakh, and advance maintenance. Two years later, when the association is registered, it asks the developer to transfer the corpus collected from all 300 flats with the interest earned.
Figures are illustrative, not market rates.
Questions about Corpus fund
Is the corpus fund refundable?
Not to the individual buyer. It belongs to the residents’ association once formed. If a flat is resold, the corpus stays with the association, and the new owner benefits from it.
How is a corpus fund different from a sinking fund?
Both are reserves for big expenses. A corpus fund is a one-time amount collected by the builder at possession; a sinking fund is a recurring contribution collected by the society over the years.
Reviewed