Mumbai Housing Society Queries: 'Societies Must Build Sinking Fund For Major Repairs,' Says Expert

Q. Can the society utilise the sinking fund for the major structural repair recommended by the structural auditor? It is necessary to collect money from the members to keep the sinking fund balance in tact as our society may go in for redevelopment in the next 3 to 4 years. —Sunita Vijan, Malad A.

Every society has to create a sinking fund for reconstruction of its building/s or for carrying out structural additions or alteration to the building/s. If the structural auditor has recommended major repair, the society can use its sinking fund with the approval of the general body. It is the responsibility of the managing committee to maintain the society in good repair and condition. Bye-law 13(c) mandates that every society must collect amounts from its members towards various funds, including the sinking fund, which shall be a minimum of 0.25% of the construction cost of each flat incurred during the society’s construction. This cost must be certified by the architect and shall exclude the proportionate cost of the land. If you are utilising the sinking fund, you will be required to maintain the minimum fund as stated above.

Q. Our society has gone into redevelopment and the development agreement has also been executed. One of the members found out that the developer has not given us the entire fungible FSI. Upon representation, the builder has now agreed to give each member additional area as per the revised calculation. Will the society be required to conduct the SGM for getting the new calculations approved as the additional area is in the interest of the members? – Manisha Arora, Ghatkopar A.

Yes, your society will be required to take the new area calculations and the entitlement of each member on record by calling a special general meeting (SGM). A resolution to this effect is required to be passed at the general body. The new area calculations will be required to be incorporated in the development application (DA) by way of a variation deed. The draft variation deed should also be approved by the members at the SGM before execution and registration. The permanent alternate accommodation agreement (PAAA) should also reflect the new area offered by the developer.

Q. Our society is sending notices for the general body meeting through the members' WhatsApp group, where only admins can post messages and members are unable to respond. Can such WhatsApp notices be considered as valid service? —Vivek Naidu, Matunga A.

As per the bye-laws, it is the responsibility of the secretary to issue notices of general meetings to the members. Such notices, resolutions, or decisions of the committee must be served to members either by hand, by dispatch through the post office, by registered post with or without acknowledgment, or by email. A copy of the same must also be displayed on the society's notice board. Once this is done, the notice shall be deemed to have been duly served or the communication duly made. Any complaint from members that the notice or communication was not received or was sent to an incorrect address shall not affect the validity of the notice or communication. Undoubtedly, WhatsApp has become the common mode of communication though intended to be a personal messaging App. While it is fine considering the ease and convenience, it may not be lawful means of communication. Notice /communication may be posted on WhatsApp group will not be construed as a legal service. (Bye Laws 98 and 162).

The questions are answered by Sharmila Ranade, a legal expert associated with Mumbai Grahak Panchayat. The questions, in brief, may be sent to fpjchs@gmail.com

Published on: Monday, July 14, 2025, 10:31 AM IST