Project & Payment
Maintenance vs Corpus vs Sinking Fund
One is your electricity bill. One is the building's savings account. One is for the lift that fails in 2040. Builders bill you for all three and explain none of them.
The short answer
Maintenance is monthly, and pays for running the building today — security, lifts, cleaning, water.
Corpus is a one-time deposit at possession, handed to the residents' association and invested. Ask whether the builder actually handed it over.
Sinking fund is collected regularly for the big repairs decades away. Many societies don't collect one — and pay for it later with a shock levy.
The comparison
| Maintenance charges | Corpus fund | Sinking fund | |
|---|---|---|---|
| What it's for | Running the building day to day — security, lifts, cleaning, water, common lighting | A one-time reserve handed to the residents' association, usually invested; the interest supports running costs | Major repairs and replacement far in the future — the lift in 2040, the roof, repainting the tower |
| How often paid | Monthly (sometimes quarterly) | Once, at possession | Monthly or annually, alongside maintenance |
| Typical size | ₹2 – ₹6 per sq ft per month | ₹50 – ₹200 per sq ft, one time | Often ~0.25% of construction cost per year |
| Refundable? | No — it's a running cost | It belongs to the association, not to you individually. You don't get it back on sale; it transfers with the flat. | No — it belongs to the association |
| Who holds it | The builder until handover, then the residents' association | Must be transferred to the association at handover | The residents' association |
| The thing to check | GST applies at 18% if it exceeds ₹7,500 per member per month (and society turnover crosses the threshold) | Has the builder actually handed it over? This is a very common dispute. | Is one being collected at all? Many societies don't, and pay for it later with a shock levy. |
The corpus fund is the one to watch. Builders collect it from every buyer and are obliged to hand it to the residents' association — with the accrued interest. Many delay for years. Ask, at possession, whether it has been transferred.
Maintenance — the monthly bill
₹2–6 per square foot per month for most projects. Security, housekeeping, lifts, water, common electricity, the generator, the STP, the gardener, the clubhouse.
Two things nobody tells you:
- It's usually charged on super built-up area — so your loading factor bills you every single month, forever.
- Cross ₹7,500 per month and 18% GST applies (where the society's turnover crosses the registration threshold). Large flats in amenity-heavy projects cross that line routinely.
₹4,800 a month feels small. Over twenty years, with inflation, it exceeds ₹15 lakh — more than the stamp duty on many flats.
Corpus — and the handover dispute
A one-time deposit, ₹50–200 per sq ft, collected at possession. It's meant to be transferred to the residents' association and invested, with the interest supporting running costs.
“Has the corpus fund been transferred to the residents' association — with the accrued interest?“
Across a 500-flat project the corpus runs to crores. Builders routinely delay handing it over, sometimes for years. It amounts to an interest-free loan from residents to the developer that nobody agreed to make.
It is one of the most common disputes in Indian housing — and one of the most winnable, if residents organise early.
Sinking fund — and what happens without one
Collected regularly — typically 0.25% of construction cost per year under the Model Bye-laws — and earmarked for the big repairs: lift replacement, external painting, structural work, plumbing overhauls.
About ₹500 a month on a typical flat. Painless.
Twenty-year-old building. Two lifts need replacing. ₹30 lakh.
With a sinking fund: the money's there. Nobody notices anything except a working lift.
Without one: a ₹1.5–2 lakh levy per flat, now. Half the residents can't pay. The work is deferred. The building deteriorates. Every flat in it loses value.
A building with a healthy sinking fund is genuinely worth more than an identical one without. Almost no buyer thinks to ask.
What to ask before you buy
New project
- What is the maintenance charge per sq ft, and is it on carpet or super built-up?
- How many months of advance maintenance are collected at possession?
- What is the corpus fund, per sq ft? When will it be transferred to the association, with interest?
- Will a sinking fund be collected?
Resale flat
- Ask a resident, not the seller. Ten minutes in the lobby beats any brochure.
- Has the builder handed over the corpus? (If not, expect higher maintenance.)
- Does the society have a sinking fund, and how much is in it?
- Are maintenance charges rising sharply? Why?
- Are there any outstanding dues on this flat? They can follow the property to you.
A well-run association will answer all of this instantly and be pleased you asked. A badly-run one will be vague — and that vagueness is your answer.
Frequently asked questions
What is the difference between maintenance charges and corpus fund?
Maintenance is a monthly running cost — security, lifts, cleaning, water. The corpus is a one-time deposit paid at possession, meant to be handed to the residents' association and invested, with its interest supporting those running costs. One is the electricity bill; the other is the savings account.
What is the difference between corpus fund and sinking fund?
The corpus is a one-time deposit collected at possession and invested as a general reserve. The sinking fund is collected regularly and earmarked specifically for major future repairs — lift replacement, external painting, structural work. A building should have both.
Is the corpus fund refundable when I sell?
No. It belongs to the residents' association, not to you individually, and it transfers with the flat. What matters is whether the builder ever handed it over to the association in the first place — which is one of the most common disputes in Indian housing.
Is GST charged on maintenance?
Yes, at 18%, if the charge exceeds Rs 7,500 per member per month and the society's turnover crosses the GST registration threshold. Below Rs 7,500 it's exempt. Larger flats in amenity-heavy projects cross that line routinely.
What happens if the society has no sinking fund?
When the lifts need replacing — around Rs 30 lakh for two — the association has to levy Rs 1.5-2 lakh per flat, immediately. Many residents can't pay. The work gets deferred, the building deteriorates, and every flat loses value. Ask about the sinking fund before you buy, especially on a resale.