• Society share transfer fee on sale purchase of flat in ahmedabad gujarat

I have bought a flat in a housing society of ahmedabad in October 2019. 
Society had demanded me Rs.50000/- transfer fee by cheqe and another Development fee Rs.75000/- also by cheque to transfer the flat in my name from reseller.
I came to know that society can not charge under any other title for Transfer fee more than 50000.
I wish to get refund from the society. But Chairman and Secretary remains silent on this demand.
How can i obtained my refund. There are few more cases in our society similar to me in last 4/5 years, who were forced to pay extra 75000/- development fee.
Please advise.
Asked 3 days ago in Property Law from Ahmedabad, Gujarat
Religion: Hindu

1. You have an positive option to file a grievance petition against the Society, in the local Consumer Court, for their illegal trade practice, negligence, deficiency, harassment, intimidation, cheating etc.... supported with proper documentary evidences and you can claim damages /compensation & interest on your investment, and for your physical & mental trauma.

2. Check the Society bye laws, on how much transfer fees is recorded and approved in the registered bye laws. This will be final and anything extra is illegal.

 

Hemant Agarwal
Advocate, Mumbai
3939 Answers
21 Consultations

5.0 on 5.0

File complaint against society before registrar against exhorbitant demand made by society 

 

2) if no action is taken file complaint against society before consumer forum and seek orders to direct society to refund your money with interest 

 

3) also seek litigation costs and compensation for mental torture undergone by you 

Ajay Sethi
Advocate, Mumbai
73013 Answers
4384 Consultations

5.0 on 5.0

Transfer fee is maximum 25k. Send legal notice for refund failure to which file recovery suit. Also complain to registrar.

By laws is contrary to law governs societies. Development charge if any than cannot impose on new buyer and equally applicable to all owners whether old or new. 

Yogendra Singh Rajawat
Advocate, Jaipur
17397 Answers
21 Consultations

4.6 on 5.0

1. Refer to the Act in force in your state to find out the maximum limit , if any, for charge on transfer of sharers.

2. In most cases the amount is reasonable one to defray the administrative costs and not a revenue generating one unless specifically provided for by the Act governing the filed.

3. In many states like WB the amount is few thousands only.

4. So you can dispute paying this amount and lodge complaint with the registrar of the Society to adjudicate the dispute.

Devajyoti Barman
Advocate, Kolkata
18831 Answers
270 Consultations

5.0 on 5.0

1. IF GB resolution has been passed, THEN too extra share transfer premium CANNOT be collected, simply because the bye laws would have to be amended and such amendments would have to be approved and registered by the Coop. Registrar.

2. No Extra amount in any guise /pretext can be collected from members, even IF passed via a GB resolution.    An illegal Act or demand CANNOT be legalized by passing a GB Resolution.  This is against the Coop. Principles, for which you can file a consumer court case or represent your grievance before the local Coop. Registrar.

Hemant Agarwal
Advocate, Mumbai
3939 Answers
21 Consultations

5.0 on 5.0

These are all illegal charges 

File complaint against society in consumer forum and claim refund alongwith interest. 

Kallol Majumdar
Advocate, Kolkata
2227 Answers
3 Consultations

5.0 on 5.0

The flat owner and purchaser, who require the cooperation of the society, for mutating the name of the purchaser on the share certificate, are generally left with no option but to heed to the demands of the society.

The question is, whether the law permits an exorbitant levy of transfer charges by a society.

The answer lies in Bylaw No 38 of the 2013 model society bylaws framed under the Maharashtra Cooperative Societies Act, 1960, read with circular dated August 9, 2001, issued by the government of Maharashtra.

The aforesaid Bylaw No 38 and circular dated August 9, 2001, unequivocally state that the premium fixed by the society for the transfer of flats, cannot exceed a sum of Rs 25,000.

The same law is applicable to Gujarat state also. 

Therefore the charges demanded by the society can be termed as exorbitant.

You may issue a legal notice to the society about this exorbitant charges and demand the refund of excess amount.

Let the society refuse to return the same citing any local bye law, you can approach the registrar of cooperative societies to intervene and render you justice by directing the society to return the excess amount charged from you.

If the approach to the  registrar fails to  invoke a positive response you may drag the society to consumer forum for relief, remedy and compensation for deficiency in service and unfair trade practice. 

T Kalaiselvan
Advocate, Vellore
62966 Answers
814 Consultations

5.0 on 5.0

The society canot pass any resolution to hike such things on its own and amend the bye laws.

It would be illegal to pass any such illegal bye laws by the society on its own.

he object of the society is only to provide services to its members who are apartment owners and the society is not a profit earning body and as such the same cannot be held to be an industry.

Any resident member, who is aggrieved by the arbitrary and unreasonable actions of a RWA, can file a suit under Section 6 of the Societies Registration Act, 1960. ... “Residents can approach a civil court with appropriate jurisdiction, for compensatory relief against the RWA,

T Kalaiselvan
Advocate, Vellore
62966 Answers
814 Consultations

5.0 on 5.0

You can make written complaint to the sub registrar of the co-operative housing society of your area. Mention all details of the Chairman & Secretary what the charges demanding 75K without any By laws passed in AGM of the society.

Ganesh Kadam
Advocate, Pune
9303 Answers
77 Consultations

4.9 on 5.0

you can seek the refund by filing consumer complaint before consumer court for deficiency of service.

Prashant Nayak
Advocate, Mumbai
17446 Answers
30 Consultations

4.6 on 5.0

Hi

You can object against the extra payment in the civil court by filing the recovery suit once the courts becomes functional after this corona thing.

Thanks 

Rahul Jatain
Advocate, Rohtak
1304 Answers
3 Consultations

4.9 on 5.0

If bye laws contain clause that society can charge transfer charges and development charges society can recover the same from you 

Ajay Sethi
Advocate, Mumbai
73013 Answers
4384 Consultations

5.0 on 5.0

1. First of all you should ask secretary to provide you copy of bye laws under which they have charged you transfer charges and development fees. 

2. Society can ask you to pay transfer fees but not development charges.

3. You should file case against society in consumer forum for refund of money paid to them under the head of development charges. 

Mohit Kapoor
Advocate, Rohtak
7134 Answers
2 Consultations

5.0 on 5.0

You can file complaint to Cooperative Registrar. 

Mohammed Mujeeb
Advocate, Hyderabad
14513 Answers
6 Consultations

4.5 on 5.0

firstly you can ask bye laws certified copy from society and check whether it is mention in bye laws or not. if bye law contain clause then you are liable to pay. 

Mohammed Mujeeb
Advocate, Hyderabad
14513 Answers
6 Consultations

4.5 on 5.0

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