Regulations on Property Management (Revised by Order No.504th of the State Council on August 26th, 2007)
Article 63 If anyone misappropriates special maintenance funds in violation of the provisions of these Regulations, the real estate administrative department of the local people's government at or above the county level shall recover the misappropriated special maintenance funds, give a warning, confiscate the illegal income, and may impose a fine of less than 2 times the misappropriated amount; Property service enterprises misappropriate special maintenance funds, and if the circumstances are serious, the qualification certificate shall be revoked by the department that issued the qualification certificate; If the case constitutes a crime, the directly responsible person in charge and other directly responsible personnel shall be investigated for criminal responsibility according to law.
Regulations "Measures for the Management of Residential Special Maintenance Funds" (DecreeNo. of Ministry of Construction and Ministry of Finance on February 4, 2007 165)
Article 37 Whoever, in violation of the provisions of these measures, misappropriates special residential maintenance funds shall be recovered by the competent department of construction (real estate) of the local people's government at or above the county level, and the illegal income shall be confiscated, and a fine of less than 2 times the misappropriated amount may be imposed; If the case constitutes a crime, the directly responsible person in charge and other directly responsible personnel shall be investigated for criminal responsibility according to law.
If the property service enterprise misappropriates special maintenance funds for residential buildings, if the circumstances are serious, it shall be punished in accordance with the provisions of the preceding paragraph, and the qualification certificate shall be revoked by the department that issued the qualification certificate.