As a flat owner, I can share my view on how much flat owner association can transfer to sinking fund. A sinking fund is reserved by the society for major repairs, maintenance, or replacing parts of the building in the future. Under Bye-Law No. 13(C), the general body decides the contribution, which must be at least 0.25% of the total construction cost of each flat, as certified by the Architect, excluding the land’s proportionate cost.
What Factors Should a Society Consider When Deciding the Contribution to the Sinking Fund?
The society should estimate the cost of major repairs that may be needed later, such as replacing lifts or fixing common areas.
Standard Calculation Formula: Estimated Cost of Major Repairs or Replacement ÷ Number of Years until the Expense.
For instance, if a lift needs to be replaced at a cost of Rs. 10 lakhs in 10 years, the society should save Rs. 1 lakh every year for this purpose. This amount is usually shared among all flats and collected either monthly or annually.
In short, the sinking fund helps the society stay prepared for future repairs and maintain the building in good condition. Hope this helps you.
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How Much Flat Owner Association can Transfer to Sinking Fund?
Raju22
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2 months
2025-09-23T18:18:44+00:00 2025-09-23T18:18:46+00:00Comment
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