Co-operative Housing Societies have a statutory obligation to collect a Sinking Fund. This is done so that in case the building needs to be repaired or reconstructed in the future, the society has sufficient funds to carry out the work. The amount to be contributed is decided by the General Body of the society it should be at least ¼ percent per annum of the cost of each apartment, excluding the cost of the land. This fund may be used after a resolution is passed at the General Body meeting with the prior permission of the Registering Authority. This could be to carry out reconstruction, repairs, structural additions or alterations to the building as the architect thinks is required and certifies.

Answered on August 21, 2011 by Ajesh  |  Like Reply

Sinking Fund is collected to make provision for major repairs and maintenance activities to be carried out in future.

Answered on May 4, 2011 by Solomon  |  Like (1) Reply