My society is “Tenant Ownership Housing Society”.
The society has ONLY Lease hold land and plots given to members for constructing houses.
The society does not have any office, building or common area. In initial stage, society has made expense in land development, road, drainage, etc. Now, road, drainage, etc are maintained by the Municipality.
- a) Does our society can create RESERVE FUNDS?
As per Utilization of Reserve Fund (definition) our society Does Not have any FIXED ASSETS to maintain or repair.
- b) Where can I find, Housing Society as per sub-class can raised RESERVE FUND?
I C Naik
If your Society happens to earn Profit(excess of Income over expenditure then Section 66 has to be complied with.
(1) Every society which does, or can, derive a profit from its transactions shall maintain a reserve fund.
( 2)[Every society shall carry at least one-fourth of the net profits each year to the reserve fund;] and2,[such reserve fund may, subject to the rules made in this behalf, if any, be used] in the business of the society or may, subject to the provisions of section 70, be invested, as the State Government may by general or special order direct, or may, with the previous sanction of the State Government, be used in part for some public purpose likely to promote the objects of this Act, or for some such purpose of the State, or of local interest:
