Legal Advice

Society has embezzled corpus fund


Our housing society has embezzled the corpus fund of five crore. When the officer bearers of the newly elected RWA searched the books of account the embezzlement was revealed. Now, the former officer bearers are refusing to give any information about the corpus fund. They have misappropriated it for their own benefits and now showing reluctance to give details. What should society do in this circumstance?


Society is not an owner of the corpus fund. The flat owners contribute and raise a corpus fund for the maintenance of the property. The promoter or builder charges a fixed or variable amount to create a fund for maintaining amenities and hands it over to the society. Thus, society is the trusty of the corpus fund. 

Embezzlement of corpus fund by society

When the society has embezzled the corpus fund the flat owner should file an FIR under section 406. They have committed the offence of criminal breach of trust which is punishable under section 406 IPC. 

It is however, not possible for individual flat owners to lodge FIR against the officer bearers of previous society. Hence, the newly elected society should register an FIR for criminal breach of trust. The president and treasurer are the main culprits because they have control over the fund of society including the corpus fund. They are responsible for any misappropriation of funds.

Also read: No share certificate to illegal flat owner

The society’s bye laws states about the manner and purpose to which the society can utilise the funds. If the expenses were not authorised by the bye laws of society the society will be responsible for the embezzlement. 

Proceeding against society for misappropriation of corpus fund

You should initiate proceedings against the former office bearers of society by sending a legal notice. The newly elected society should demand from them to produce books of account and furnish details of expenses out of corpus fund. If they do not reply to the legal notice within a reasonable time period then society should lodge FIR for embezzlement of corpus fund. 

Call an emergency meeting of society and table the resolution for initiating criminal proceedings against the former officer bearers for embezzlement of corpus funds. Pass that resolution from the society and take steps. The society should take a certified copy of transaction details from the bank. Collect minutes and resolutions passed by the former society for maintenance work. Thereafter lodge an FIR.

Shivendra Pratap Singh


High Court Lucknow

Latest Advice

Father can transfer entire property to grandmother

My age is 16 and I’m the only son. My mother died 3 years back and so now my father is going to re-marry. It’s a very tough situation, my father says that he’ll give the entire property and assets to my grandmother and then she’ll give all that to me when I’m old enough. Everything we own is ancestral property but then there is also assets like gold or silver. So is there any chance that my stepmother can acquire all that and push me out. I’m scared please answer.

Tenant has made substantial changes in premises without permission of landlord

I am writing to seek your professional advice regarding a situation I am facing with my tenant. Over the past three years, my tenant has not paid rent, and I am concerned about the legal steps I can take to address this issue. Can I terminate the rent agreement based on this non-payment?

Additionally, I recently discovered that the tenant has undertaken significant alterations to the property without my knowledge or consent. This includes filling a large cavity, which seems to have resulted from his negligence. He has also installed an extra bathroom, toilet, and kitchen on the premises without obtaining proper authorization. It appears that he neglected to properly fill the trenches used to lay sewerage and water lines, leading to structural damage such as cracks in the walls and ceiling. He has written that he has spent on filling up the cavity but has not given details of expenses. However, he is trying to link it with non-payment of rent.

Given these circumstances, the tenant is now requesting extensive repairs to the property. I would like to mention that the tenant is 90 years old, and all of his sons have their own residences. It seems that he intends for his grandson to continue residing in the property as a tenant.

I would greatly appreciate your guidance on the legal options available to me in this situation. Your expertise and advice will be invaluable in helping me navigate this complex matter.

Thank you for your time and consideration. I look forward to hearing from you at your earliest convenience.

P.S. How can I send the rent agreement cum compromise?

NOC from government for taking admission in foreign university

I am a govt servant and currently in a process of making applications to numerous foreign universities  for a PhD program.  I asked my organization for a general NOC applicable to all universities. They denied and asked me to mention the name of the university to which I am applying.  As currently I am in a process of making applications and my admission is not yet confirmed. I cannot mention a list of 10-50 universities in my application.  Kindly help me write an appeal / application for issuance of a general NOC.