• Limit on transfer fee of co-operative housing society in Telangana state

I've recently purchased a independent house (300 sq.yds) in a CHS with about 450 houses, in Hyderabad (Telangana State). The CHS is demanding Rs. 2 lakh as "development charge" from me to become a member. 

1) I'm aware that Maharashtra state limits the transfer fee to Rs.25,000 in case of flats. (assuming the same holds for societies with individual houses also). Is there not a law limiting the transfer fee that a CHS in Telangana State? If so, how much? Could you please mention relevant clauses of the act.

2) If no limit exists, does a revised transfer fee decided in the general-body meeting effective from the day such resolution is adopted OR only after such resolution is approved by the registrar of cooperative societies?
Asked 4 years ago in Property Law
Religion: Hindu

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7 Answers

1) the amount of Rs 2 lakhs demanded is exhorbitant

2) there has to be a circular issued by government fixing transfer charges that can be levied by society

3) ask society to furnish basis on which Rs 2 lakhs is demanded

4) if it is as per amendment of bye laws then that amendment has to be approved by registrar of society

5) not aware as to maximum amount that can be charged as transfer charges in telengana

Ajay Sethi
Advocate, Mumbai
87911 Answers
6207 Consultations

5.0 on 5.0

This is my response to you:

1. You can contact the Registrar of Societies: https://www.justdial.com/Hyderabad/Registrar-Of-Cooperative-Societies-Nampally/040P[deleted]N3Y1M9_BZDET ;

2. You can also call/contact the office on: http://www.telangana.gov.in/contacts/hods ;

3. The charges of 2 lakhs are too absurd, and if they are charging you that much you can send a letter according to which rule, bye-law or government circular or order are they asking for such heavy prices;

4. If they don't give satisfactory answer, then you can initiate a complaint against the society;

5. An AGM cannot decide such a heavy charge under the guise of "development charges". You can also ask for the breakdown of the charges being levied on you;

6. In the meanwhile contact the registrar's office and try to search for the guidelines or bye-laws which are charging such heavy transfer fees.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

1) The above query can check as per Andhra Pradesh Co-operative Society Act is applicable for Telangana State as well.

Registrar of Societies i.e., District Registrar of a District appointed under Andhra Pradesh Societies Registration Act, 2001 as applicable to the state of Telangana is the authority to register the societies.

2) In this its mentioned as per Bye laws created by Society that is applicable as per Andhra Pradesh Societies Registration Act.

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

The transfer fee is based on the agreement between the residents and is incorporated in bye laws of the society if it is approved in AGM that limit prevails on any clause in the apartment act.

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

Any amount which has been applied for all memebers, should not only a reasonable but also must not be arbitary if no limit is prescribed in law.

And it should also be enforceable from the date of its deciding not retrospectively.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

1. The subject of transfer fee is a local subject and is generally decided by a resolution in the GB meeting by the society and would add it as bye law.

2. If you do not want to pay the exorbitant amount, you can ask for relevant rules authorizing them to demand the fee to this exorbitant extent.

3. The cooperative societies will not the registrar in this issue when they have made a decision for this in a meeting, they will simply send the resolution copy and the amended bye laws for their approval, which will not be objected by the registrar since it has been passed by the society,

T Kalaiselvan
Advocate, Vellore
78070 Answers
1543 Consultations

5.0 on 5.0

Hi

1) Unfortunately, the government of Telangana has refrained from passing any G.O or law restraining the co-operative housing societies from collecting exorbitant transfer fee running in to several lakhs under various names such as development fee, membership fee etc.

2) The present scenario is that it is being projected as a voluntary contribution by house owners towards the welfare/betterment of society by Management committee's of such societies despite the same being forcibly exhorted from House owners. Though there are cases pending in District courts on this subject matter, we are yet to see any concrete judgment stating that the said transfer fee is illegal/unconstitutional.

3) The transfer fee is payable from the date of approval of such resolution by registrar of cooperative societies (if at all the same has been approved by Registrar of co-operative societies) or from the date of passing of a resolution by members of CHS in their general body meeting.

Rajgopalan Sripathi
Advocate, Hyderabad
2169 Answers
394 Consultations

5.0 on 5.0

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