Why is the Corpus Fund/Sinking Fund collected?
Co-operative Housing Societies have a statutory obligation to collect a Sinking Fund. This is done to take care of the future expenses towards major repairs/uplift of the building if required. The amount to be collected is decided by the General Body of the society. Since the General Body of the Society would not be in place by the completion of the construction, the promoter would undertake the responsibility of collecting a certain amount, depositing the same in a bank and handing over the account to the General Body once it is constituted.
