Sinking fund utlizations

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Alex Abraham (Querist)
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05 October 2021 We are a cooperative housing society and sinking fund is collected on a monthly based on the flat area. The society has decided to undertake repair works. The funds will be generated as below: -
Repair funds = Sinking fund +building Repair funds+ additional collection from members based on flat area.
Now a 2 BHK flat owner has more flat areas so their contribution to sinking fund is the more as compared to 1BHK & 1RK. The society is planning to utilize sinking + building repair fund as common funds, in such case it acts as a subsidy for 1 BHK and lower area flat owners as they have already contributed less to these fund as their flat area is smaller and 2 BHK owner losses the most. Note If the society is doing additional collection for repair fund based on the individual flat area, then why cannot sinking + building repair fund which is already collected based on flat area be divided based on the individual flat contribution so that it will be a win-win for all. opinion and view on this.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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06 October 2021 1. Note that there are specific conditions in the CHS act, for the utilization of sinking fund. So, first check that in bye-laws, before its utilization.
2. The contribution should always be divided based on carpet area of individual flat, which has its own justification.

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