• Donation / transfer charges levied by Coop Housing Society

I live in a gated bungalow society in Pune in an independent bungalow. My Society is levying a mandatory donation on the seller of Rs 100 per square foot of plot area. They now propose to raise this charge by double in the imminent AGM. Unless the seller pays this usurious levy, the Managing Committee does not give the NOC.

What steps can I take to stop this practice and can you help me with legal assistance?
Asked 6 years ago in Property Law
Religion: Hindu

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14 Answers

1) society cannot recover more than Rs 25000 as transfer charges

2) AGM has no powers to recover mandatory donation of Rs 100 per square feet or to double the amount tv

3) you can file complaint against society before dy registrar

4) you can challenge said resolution before cooperative court

5) contact a local lawyer

Ajay Sethi
Advocate, Mumbai
94523 Answers
7485 Consultations

5.0 on 5.0

The society cannot compel any resident or seller for donation. File a complaint before the Registrar against the society.

Ruchit Dugar
Advocate, New Delhi
190 Answers

4.9 on 5.0

This is my response to you:

1. The Society bye-laws or rules or regulations should be read first;

2. You can ask for the copy from the committee as your inherent right;

3. If there is no such rule and if the AGM is using its powers arbitrarily then send them a legal notice.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

Hello,

There must be an agreement which stated the actual cost , if they suddenly raise it you can approach the court .

Regards

Swarupananda Neogi
Advocate, Kolkata
2963 Answers
6 Consultations

4.7 on 5.0

The limit on transfer charges in housing society is 25000 the society cannot charge more then that in state of Maharashtra.

File a complaint before the Registrar of the societies against the act of the society. Ask society to give in writing the charges they are asking.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

Please be aware that housing cooperative society which is known by its bye laws approved by the members at large can fix charges for Transfer of Property and providing the NOC and that charges are mandatory to pay and if it is proposed to increase the charges in the AGM the only way out is that the charges should not be approved by the AGM these chargers prevail on any external tax that is imposed by the government

Vimlesh Prasad Mishra
Advocate, Lucknow
6852 Answers
23 Consultations

4.9 on 5.0

1. Generally all the Societies levy such charges for issuing NOC for selling the flats/houses in the Societies.

2. The amount so collected is used by the Society for the maintenance or welfare of the members of the said society.

3. Such levies or taxes are collected as donations from the buyer or seller or from both. it has become unwritten rule for all the societies accros the country.

4. However, such levying of amount for issuing NOC for sale can not be recorded in the minutes of meeting of the AGM since such forcible collection of money is not legally valid.

5. If the society has recorded in its minutes of the meeting of the AGM that it will charge the said amount for issuing NOC for selling the property, you can lodge complaint to the registrar and if no redressal is found, you can file a Writ Petition before the High Court against the Society, its office bearers and also the Registrar for the said illegal demand for money from you praying for a direction upon the Society to isue you the NOC for selling your property without collecting any such levy.

Krishna Kishore Ganguly
Advocate, Kolkata
27191 Answers
726 Consultations

5.0 on 5.0

1. The society can ask for nominal charge for administrative fees to change name on transfer of property. But the same is for meeting administrative costs only .

2. The society can not make profit at the costs of its members . t can only charge fees for ding administrative works.

3. So this exorbitant charge on transfer of ownership is misdirected and without basis and hence you have got right to refuse to make such payments.

4. Do note that absence e of NOC from society while selling a flat does not make the tittle defective.

5. In the meantime lodge complaint with the Registrar of society to adjudicate this dispute.

Devajyoti Barman
Advocate, Kolkata
22779 Answers
484 Consultations

5.0 on 5.0

hello,

a society cannot impose onerous conditions upon its owners and prospective buyers so as to deter them from purchasing/selling/ leasing the property. it is also in violation of your right to reside and settle. therefore, you should file an application and submit it to the committee. if they do not respond or amend their rules, the municipal authorities must be apprised of the situation. a Writ petition should be filed making both of them parties.

regards

Rahul Mishra
Advocate, Lucknow
14083 Answers
65 Consultations

5.0 on 5.0

1. The Legally permissible Transfer Premium is 25000/- in Maharashtra. Anything above that is illegal and a punishable offence (intimidation, extortion, threatening).

2. File FIR /NC, in the local Police Station. Consequent to this file a grievance petition against the Society, in the local Consumer Court. This will set right the nefarious demands of the Society, once and for all.

Keep Smiling .... Hemant Agarwal

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

Hi, it is advisable to file a civil suit for permanent injuction in court to obtain a stay order on the said notification of association ...

Hemant Chaudhary
Advocate, Gurgaon
4630 Answers
67 Consultations

4.9 on 5.0

If you are a registered member then you are required to abide by the society rules and bye laws.

If the latest demand is felt to be exorbitant then you may raise this issue in the general meeting and agitate against it with the support of like minded members.

However the society cannot refuse to give NOC for such reasons, you can initiate legal action against it.

T Kalaiselvan
Advocate, Vellore
84722 Answers
2172 Consultations

5.0 on 5.0

1. society NOC is no more required for sale of property

2. you have to complain to the deputy registrar of co-operative housing societies against the society

Yusuf Rampurawala
Advocate, Mumbai
7485 Answers
79 Consultations

5.0 on 5.0

File Complaint to Dy Registrar about the same. You can seek explanation from the Society about levy of the said charges.

Prashant Nayak
Advocate, Mumbai
31807 Answers
176 Consultations

4.1 on 5.0

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