| My housing society in Patna received a corpus fund from the developer as part of redevelopment, but members disagree on its distribution. What legal recourse is available? |
Corpus fund disputes in redevelopment agreements are among the most contentious and financially damaging problems in housing society redevelopment across Patna's older residential colonies, and they arise almost universally because the corpus fund was either inadequately defined in the agreement or was not secured from the builder at the time of signing. If you are already in a dispute, the remedies are real — but the practical lesson for anyone not yet in this position is to get the agreement right before the builder gets possession.
The corpus fund in a redevelopment context is the amount the builder pays to the housing society to be held for the long-term maintenance and upkeep of the new building after residents take possession. In a properly drafted agreement, the corpus fund quantum, the timeline of payment (typically at or before the occupation certificate stage), the form in which it is held (a fixed deposit in the society's name, not accessible by the builder), and what the money can be used for are all precisely defined. A builder who has not paid the corpus fund on time, has paid less than agreed, or has conditionally structured the payment in a way that prevents the society from actually receiving it, is in breach of the redevelopment agreement.
Your remedies depend on how the obligation is framed in your agreement. If the builder has breached a specific payment obligation, a civil suit for enforcement of that contractual term — combined with an injunction on occupation certificates or handover of common areas until the corpus fund is paid — is the primary civil route. If the redevelopment project is registered with Bihar RERA, the builder's failure to comply with any term of the registered agreement is actionable before the Bihar RERA Authority at rera.bihar.gov.in. If the builder collected money from society members under the label of "corpus contribution" but diverted it to other uses, that is criminal breach of trust under Section 316 BNS and a police complaint or Magistrate's complaint is available. The property and RERA advocates at the Patna panel of Aapka Legal Advice can assess the specific breach in your redevelopment agreement and advise on the most effective combination of civil and regulatory remedies.
