Project & Payment
What is a Corpus Fund?
A large one-time payment that is supposed to be handed to your residents' association. Ask, at possession, whether it actually has been.
The short answer
A corpus fund is a one-time deposit — typically ₹50 to ₹200 per square foot — collected at possession. It is meant to be transferred to the residents' association, invested, and its interest used to support the building's running costs.
You don't get it back when you sell — it belongs to the association, and it transfers with the flat. The question that matters is whether the builder ever handed it over at all.
What a corpus fund is
Think of it as the building's savings account, funded once, by every original buyer.
It is collected at possession, held (in principle) as a reserve, and invested. The idea is that the interest it earns helps cover running costs — reducing the monthly maintenance every resident pays, and providing a cushion when something unexpected happens.
It is sometimes called an IFMS — Interest Free Maintenance Security.
What it costs
A typical corpus fund
1,200 sq ft flat, corpus at ₹100 per sq ft.
- Rate
- ₹100 / sq ft
- Area
- 1,200 sq ft
- Corpus payable at possession
- ₹1,20,000
Across a 500-flat project, that is ₹6 crore sitting with the builder. Which is precisely why the next section matters.
The handover problem
The builder collects the corpus from every buyer. They are obliged to transfer it to the residents' association — with the interest it has earned — when the building is handed over.
Many delay. For years. Some never do it at all without a fight.
On a large project the corpus runs to crores, and the interest on it over three or four years is not small. It is, in effect, an interest-free loan from residents to the developer — one they never agreed to make.
Getting it back is achievable — associations do win these — but it takes organisation, persistence, and often a RERA complaint or a consumer forum case.
Far easier to ask early, in writing, and keep asking.
What to ask, and when
Before you buy
- How much is the corpus fund, per sq ft? Get it in writing, in the cost sheet.
- Is it calculated on carpet or super built-up area? The difference is real.
- When will it be transferred to the association? Get a commitment.
- Will the accrued interest be transferred too? It should be. Ask explicitly.
At possession
- Get a receipt that names the sum as a corpus fund and states it is held in trust for the residents' association.
- Ask when the association will be formed and the fund handed over.
If you're buying a resale flat
“Has the builder transferred the corpus fund to the association?“
If not, the association is short of money it is owed — which usually means higher monthly maintenance for you, or a levy down the line.
Ask a resident, not the seller. It takes one conversation in the lobby, and it will tell you more about the building's finances than any brochure.
Corpus vs maintenance vs sinking fund
| 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.
Frequently asked questions
Is the corpus fund refundable?
Not to you personally. It belongs to the residents' association and transfers with the flat when you sell — you don't get it back. What matters is whether the builder actually handed it over to the association in the first place.
How much is the corpus fund in an apartment?
Typically Rs 50 to Rs 200 per square foot, paid once at possession. On a 1,200 sq ft flat at Rs 100 per sq ft, that's Rs 1.2 lakh. Across a 500-flat project that's Rs 6 crore sitting with the builder.
What happens if the builder doesn't hand over the corpus fund?
It's one of the most common disputes in Indian housing. The builder is obliged to transfer it to the residents' association with accrued interest at handover. Many delay for years. Associations do win these — through RERA complaints or consumer forums — but it takes organisation and persistence. Far easier to ask early, in writing, and keep asking.
What is the difference between corpus fund and maintenance charges?
Maintenance is a monthly running cost — security, lifts, cleaning, water. The corpus is a one-time deposit, paid at possession, meant to be invested by the association with its interest supporting those running costs. One is the electricity bill; the other is the savings account.
Is corpus fund the same as IFMS?
Broadly yes — IFMS (Interest Free Maintenance Security) is another name for the same thing, common in North Indian projects. Both describe a one-time deposit collected at possession and held as a reserve for the building.