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.