You are required to pay only transfer charges
society cannot demand development fees
complain to registrar against society demanding development fees of Rs one lakh from you
Transfer fee includes development fee which is very high
I have bought an adjacent flat in a housing society of ahmedabad in October 2023. Society had demanded me Rs.50000/- transfer fee by cheque and another Development fee Rs.100000/- also by cheque to transfer the flat in my name from seller. I came to know that society can not charge under any other title for Transfer fee more than 50000. The amount is still not paid, and I seek your legal opinion to know whether taking Development Fee is legal and if it is legal then why only the new buyer, shouldnt it be taken from all the members of the society. Please advise.
Asked 2 years ago in Property Law
Religion: Hindu
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7 Answers
- As per Madras High Court , Flat owners’ association i.e. society cannot demand a transfer fee at every resale of a flat.
- Further, as per law in Maharashtra , a society cannot charge more than Rs 25,000 for transfer of property in the new buyer’s name., and no other charges can be demand by the society
- You can lodge a complaint before the registrar of society .
Society cannot any amount for transfer of title.
The 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. 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 refuse to pay more than Rs. 25,000/- quoting the above referred law and also refuse to pay the development charges, which is an illegal demand by the society.
Let the society issue a reply notice denying the averments made by you and insist on their original demand, citing any local bye law, you can approach the registrar of cooperative societies to intervene and render you justice by directing the society to adhere to the bylaws framed by Government for this purpose.
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.
The society member transfer fee should not be more than Rs. 25,000/-, and for the development fee, kindly check in the society by-laws whether that rule has been passed out in the past AGM. If it is passed in the AGM, then you have to pay the development fee; otherwise, you do not.
Dear Client,
The Cooperative housing societies may impose certain fees; however, these levies must be reasonable, nondiscriminatory, and compliant with applicable laws. To determine whether the development fee is lawful, get legal counsel. If necessary, take appropriate action, such as bringing up the matter with the community or pursuing legal action if the fees are determined to be unlawful.
A perusal of circular dated 13-2-1991 shows that the matter was again placed before the State Co-op. Council and it is resolved vide resolution No. 9 for providing transfer fee on uniform basis at the rate of 10% of difference subject to minimum of Rs. 500/- and maximum of Rs. 50,000/- and utilisation of said amount for common facilities etc
