• Transfer fees payable to society for sale of commercial property

The society is asking a transfer fee of Rs. 1,64,000 + Gst for sale of a commerical property. Is it correct that the transfer fee cannot be more than Rs. 25,000 and is that applicable to commercial property also?
Asked 6 years ago in Property Law
Religion: Hindu

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12 Answers

Society cannot charge more than Rs 25000 as transfer charges 

 

2) amount demanded by society is exhorbitant 

Ajay Sethi
Advocate, Mumbai
99790 Answers
8147 Consultations

Maximum 25k, no differentiation of nature of property transferred. Premium fixed by the society for the transfer of flats, cannot exceed a sum of Rs 25,000.

Yogendra Singh Rajawat
Advocate, Jaipur
23082 Answers
31 Consultations

Ask society for the basis on which claim is made 

complain to registrar against society regarding the transfer charges 

Ajay Sethi
Advocate, Mumbai
99790 Answers
8147 Consultations

The society cannot demand more then 25000 in Maharashtra as transfer fee you can ask in written and also can seek copy.of bye laws. 

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

You can file a complaint before the registrar of society for this exorbitent demand by society.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

No it's illegal. Don't pay file complaint to dy registrar

Prashant Nayak
Advocate, Mumbai
34526 Answers
249 Consultations

1. Premises Society (commercial) legally CANNOT collect more than 25000/- as share transfer premium.  This is applicable for Housing and Premises (commercial) Society also.

2. Serve Legal Notice to Society to refund the illegally extorted fees and on failure file written grievance application to the Deputy Registrar of Coop., or can also file grievance petition before the local Consumer Court and claim damages & compensation for the physical & mental trauma as well as illegal trade practices by society.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

25000 was the maximum amount a society can take as transfer charges. You can file a complaint before the Registrar against the society for the same.

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

File complaint to registrar.

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

Each time, a cooperative housing society member wants to sell his property anywhere in Mumbai, he is bullied into paying up way beyond the officially ‘legal’ transfer fee of a maximum of Rs 25,000. The excess he pays ranges from Rs 5,000, in case of small societies to as high as a few lakhs of rupees, depending on the size, status and level of moral accountability of the society in question.

While it may be realised that by law, no member needs a no-objection certificate for the sale of one’s own property in a cooperative housing society, there’s a bit of a glitch here. A potential buyer, intending to ‘purchase’ a flat in a society, usually pays the amount through a loan, approved from a financial institution which, almost mandatorily, insists upon a no-objection certificate from the cooperative housing society, housing the property. If the outgoing member refuses to pay up the excess, in cash or in the form of a ‘voluntary donation to the society’, as is usually the case, the managing committee will delay, procrastinate, sometimes out-rightly refuse to give the new member the required no-objection certificate, in order to avail the loan on the property. In the absence of a clear intention to provide a no-objection certificate, no buyer would be keen on ‘buying’ a property, however clean its title.

The Co-operative Court has held that the housing society can place ‘reasonable restrictions’ on the transfer of a flat, to prevent nuisance from the unwanted elements but that does not mean that the society can have such a right of profiteering out of the co-operative movement. However in practice, the complete reverse holds true. The law clearly puts down that even though, there is no necessity of the society’s no-objection certificate for the transfer of a flat, according to Rule 24 of the Rule 1961; one has to give a 15-day notice to the society before transferring the flat. On receipt of such a notice, the secretary should place the same before the meeting of the committee and take the decision thereof, before 30 days and inform such a decision to the member within eight days from the decision of the society.

f the society has not taken any decision of transferring the share certificate within the three months, the stipulated period, as per the provision in Section 22(2), there is a provision to appeal before the Registrar, under Section 23(2)

 

 

T Kalaiselvan
Advocate, Vellore
89992 Answers
2495 Consultations

Approach the police and file an FIR against the secretary of the society and the managing committee member under Section 418 which pertains to: Cheating with the knowledge that wrongful loss may ensue to person whose interest offender is bound to protect. Accordingly: Whoever cheats with the knowledge that he is likely, thereby, to cause wrongful loss to a person whose interest in the transaction to which the cheating relates, he was bound, either by law or by a legal contract, to protect, shall be punished with imprisonment of either description for a term which may extend to three years or with fine or with both.

Once you file an FIR, move a no-confidence motion against the society’s managing committee or the member (secretary, if necessary), in question. Evict the person from the position of authority on the premise that a person can’t be a judge and an accused in the same case.

Approach the Consumer Court and file a suit for dereliction of services by the cooperative society’s managing committee. Demand redress for loss suffered by way of time and money. The cooperative housing society is bound to provide you ‘service’ under the Consumer Act.

The model bylaws, under Bylaw 7, clearly ensure that the society can raise funds from voluntary donations collected but ‘not by transferor or transferee’. For every request of ‘voluntary donation’ made by a cooperative housing society, you could approach the Registrar with a written complaint detailing Bylaw 7 of the New Model bylaws.

Escalate the matter to a Cooperative Court or Civil Court, detailing illegalities under the Maharashtra Cooperative Housing Societies Act for collection of the ‘voluntary donations’ without following due process of law.

T Kalaiselvan
Advocate, Vellore
89992 Answers
2495 Consultations

1. The transfer fees for transfer of share certificate in society cannot be more than 25K. 

2. If society is demanding inappropriate amount then you can make complaint against society with Assistant registrar coop societies.

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

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