• Transfer fees for outgoing member

I am an Outgoing member of a Co-op Industrial society. I am selling the property because of Financial issues. my question is that, Is the Outgoing member be forced to pay 50 % of transfer fees. society is asking 25000/- from Out going as well as Incoming member. in addition to that because asking for any additional money in name of Transfer fees is illlega. so its passed in AGM that both members will pay Rs. 200 Sq ft each to the Society as Society welfare fund. Me already having a tremendous cash crunch and my So called Society welfare fund is coming to INR 1,80,000/- which I can not afford at this time. 
what is the Solution to it. whom can I ask for help. Society Chairman is Already in Fight with me so I donr expect any help or consideration from them.
Asked 28 days ago in Property Law
Religion: Hindu

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15 Answers

Only one time transfer fees which cannot be more than 25k. 

Rest demand is illegal. Complain to registrar or obtain stay from court and direction to issue NOC by paying 25k which will paid by buyer.

Yogendra Singh Rajawat
Advocate, Jaipur
21402 Answers
31 Consultations

4.4 on 5.0

Society cannot recover more than Rs25000 as transfer charges 


incoming member does  not have to pay Transfer charges 

no need to pay any money to society welfare fund 


file complaint against society before registrar 


you can issue legal notice to society to give NOC for sale of flat and not to demand any money towards society welfare fund 

Ajay Sethi
Advocate, Mumbai
79294 Answers
4742 Consultations

5.0 on 5.0

No it's only 25000/- and is not taken from both only buyer pays it as transfer fees

Prashant Nayak
Advocate, Mumbai
22417 Answers
49 Consultations

4.4 on 5.0

1. Society, legally can totally demand ONLY 25000/- as Share Transfer Premium, which is usually paid 12500/- each by Seller & Buyer (Typically it is the Buyer who bears the entire 25000/-).  ANYTHING else besides this is illegal and a prosecutable offence.  This also has been upheld in a recent HC judgement in a matter of Shah vs Grand Paradi CHS.


3. You may prefer to make complaint to the ward coop. registrar for your grievances and seek directions to Society.

Hemant Agarwal
Advocate, Mumbai
5441 Answers
25 Consultations

5.0 on 5.0

Well, for change of membership or share certificate the society can charge an amount which must be nominal to defray the administrative expenses.

No such amount can be such which is an exorbitant on the pretext of sale of the property.

Therefore the claim of the society for this amount is illegal and unjustified.

Therefore you can not only refuse to make such payment but lodge a complaint with Registrar of Society as well to stop this society from raising such demons in future. 

Devajyoti Barman
Advocate, Kolkata
21680 Answers
311 Consultations

5.0 on 5.0

Who will pay the transfer fee is a matter of contract between seller and buyer

Society cannot dictate that both must pay equally

Any amount other than transfer fee which is charged by society is clearly illegal and not binding 

Yusuf Rampurawala
Advocate, Mumbai
5757 Answers
35 Consultations

5.0 on 5.0

You can issue a legal notice to the society chairman questioning his authority to demand the said transfer fee from you, the outgoing member.

If he is citing any flimsy reason and insists on payment of the demanded fee, you can attach the copy of the reply of the society along with your complaint letter to the registrar against the society which is demanding this illegal amount from the outgoing member and to intervene and direct the society to refrain from demanding such illegal amounts.

Let the chairman reply or answer to the registrar of cooperative societies on the basis of your complaint.


T Kalaiselvan
Advocate, Vellore
69328 Answers
929 Consultations

5.0 on 5.0

Please approach Dy. Registrar of Society under whose jurisdiction your Industrial Society is registered. He will solve your problem. 

Ramesh Pandey
Advocate, Mumbai
2538 Answers
8 Consultations

5.0 on 5.0

File a complaint against them in the office of registrar cooperative Societies 

Rahul Jatain
Advocate, Rohtak
5364 Answers
4 Consultations

4.8 on 5.0

That is illegal. File a complaint before the registrar of the society.

Rahul Mishra
Advocate, Lucknow
11560 Answers
20 Consultations

5.0 on 5.0

Kindly check with that by-laws is registered with sub registrar or registrar of cooperative housing society. 

Society can't take more than 25k as transfer fees.


You can make written application to registrar and assistance commissioner, commissioner and ministry of cooperative at a time.


Your problem will get resolved within one month.


Do let me know if you require any further help. As it's commissioner office is at Shivaji Nagar, Pune.

Ganesh Kadam
Advocate, Pune
11668 Answers
109 Consultations

4.9 on 5.0

You will pay transfer charges only when you are selling the flat to the other owner. Also usual custom is the transfer charges are borne 50–50 by both the owners.




Mohammed Mujeeb
Advocate, Hyderabad
18935 Answers
11 Consultations

4.5 on 5.0

Dear Sir/Madam,

You are suggested to submit your grievances through an humble application to the registrar of society and if not heard, file the writ petition in High Court. 

Ganesh Singh
Advocate, New Delhi
6512 Answers
13 Consultations

4.5 on 5.0

1. Society cannot demand money from member Selling his unit. 

2. They can demand transfer charges but that is to be mutually decided between buyer and seller that who is going to pay those charges. 

3. You should make complaint against Managing committee to Assistant registrar coop societies.

Mohit Kapoor
Advocate, Rohtak
10685 Answers
7 Consultations

5.0 on 5.0

- As per law, A society has no legal authority, to issue moral, ethical and social diktats to its residents.

-  Society by law and resolutions must be limited to the mandate of governing the society’s affairs and nothing more.

- Further, the resident/member who is aggrieved by the arbitrary and unreasonable actions of a Society can file a Suit under Section 6 of the Societies Registration Act, 1960.

- Further , the said industrial society cannot charge transfer fee from the outgoing member and from the incoming member , and it is against the society rule  

- Hence, the said society cannot make such rule , which is not acceptable by its members . 

- You can lodge a compliant before the Registrar.

- However, before approaching registrar , you can issue a legal notice to the society for issuing NOC without charging any amount from you. 

Mohammed Shahzad
Advocate, Delhi
5531 Answers
51 Consultations

5.0 on 5.0

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