• Sale deed and 7/12

Hi there is an agricultural society in Karjat having 280 acres of land in it procession with around 506 members.
They have auctioned the plots of 13500 square foot to each member.they give procession of the plot with proper demarcation and no, mentioning the block with proper map. Yet they do not register the documents or pay stamp duty. From the last 50 years they only give share certificate to the members. Every outgoing member sells the plot on a 500 rupees stamp paper and noterised the document. Society transfers the certificate to the new owner. 
The 7/12 of the total land is in society name. Neither they put the name of each member in 7/12 nor they look into whether the stamp duty is paid to the government.
My question, is it legal to sell and purchase the plot without paying the stamp duty from the last 50 years and still transfer the share certificate, of a particular plot with demarcation.
Every member has own electricity connection in their names. The managing committee says the actual ownership lies with society as 7/12 is in the name of the society.
Is it ok, what can be done to get the document registered and how can we pay the stamp duty to the government.
Asked 1 year ago in Property Law
Religion: Hindu

First answer received in 10 minutes.

Lawyers are available now to answer your questions.

18 Answers

It is not legal to execute sale deed on only Rs 500 stamp paper 

 

2) it does not confer clear and marketable title to property 

 

3) registered sale  deed is necessary to confer clear and marketable title to the plot 

Ajay Sethi
Advocate, Mumbai
99787 Answers
8146 Consultations

If plot is auctioned then you are absolute owner of the plot 

 

the name of purchaser should be reflected in revenue records ie 7/12 extracts 

 

3) you should approach collector for adjudication of stamp duty on document excited in your favour 

 

4) pay the stamp duty and register the document 

Ajay Sethi
Advocate, Mumbai
99787 Answers
8146 Consultations

The immovable property sold by an unregistered sale deed except an attestation by a Notary public is not legally valid, and the buyer cannot claim legal title to the property purchased by this mode. 

The buyer can ask the society to execute the registered sale deed of the property to the buyer and the buyer should bear the stamp duty and registration charges. 

T Kalaiselvan
Advocate, Vellore
89989 Answers
2493 Consultations

You cannot execute the registered sale deed by yourself in your favor.

There should be a seller/vendor to sell the property, here the society is the vendor hence it only has to execute the sale deed in favor of the buyer. 

If the society is not doing it then you can approach a civil court with a suit for specific performance of contract seeking direction to the society to execute a registered sale deed, failing which the court to execute the same on behalf of the society. 

T Kalaiselvan
Advocate, Vellore
89989 Answers
2493 Consultations

- The said allotment on a 500 rupees stamp paper is not valid and the transfer has not taken place in the absence of a valid registered document, and that is the reason 7/12 is showing the name of the society and not the purchaser. 

- The electricity connection is not a proof of ownership

- You can issue a notice to the society to execute registered sale deed in the name of purchaser and if no positive result then file a case before the Court 

-  Further after getting a registered transfer document in your name , you can directly apply for entering your name in the 7/12.

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

Dear Client,

The case discussed here contains profound legal perspectives specifically concerning the ownership of land as well as legalities of transactions in the farming community of Karjat, Maharashtra. According to the Indian law particularly the Indian Stamp Act and Registration Act the sale and purchase of property are unenforceable unless it is registered and stamp duty is paid. The 7/12 extract also shows that the certificate of title shows that the land is owned by the society and not individual members without it being stated in the bylaws. Even in instances where share certificates are issued to shareholders, the shareholders do not own the land. Members should consult the lawyers on their rights and try to negotiate with the society’s managing committee to assist in registration of the plots. Besides, they may consider paying stamp duty later and if required also, can complain to the Registrar of Societies or even go to the court to claim their rights. There is a need to follow legal provisions in an effort to pursue the interests of the individuals that are involved in property transactions.

 

Hope you find this answer suitable for resolving you query.

Anik Miu
Advocate, Bangalore
11015 Answers
125 Consultations

You are correct that no sale or purchase can take place without payment of stamp duty 

 

2) bye laws cannot over ride provisions of stamp act and registration act 

 

3) issue legal notice to society that registration of sale deed  is mandatory 

Ajay Sethi
Advocate, Mumbai
99787 Answers
8146 Consultations

Yes, it is an illegal act to sell the property without registered sale deed.

It is also a fraud for cheating the government for not paying the stamp duty on the sale of immovable property.

But is there anyone to expose the society before law enforcing agency?

You also can do it, will you?

T Kalaiselvan
Advocate, Vellore
89989 Answers
2493 Consultations

Dear Client,

The action taken by the housing society wherein the plots have been auctioned and the payments collected without proper registration and payment of stamp duty is unlawful as per the Indian Stamp Act, 1899 as well as the Registration Act, 1908. Unregistered transactions do not convey the legal title therefore, notarized agreement to sell is invalid. The society has a responsibility in the enforcement of these laws and cannot set by-laws that negate legal provisions. As members, you can force the society to register documents by approaching the managing committee, or even report the society to the authorities in the event that the managing committee does not act as expected. Members who do not register may be subject to litigation and the possibility of the entire land being sold without consideration of their rights. It is recommended to seek consultation from a real estate lawyer to safeguard your own interests and to make sure that the society complies with the legal requirements.

 

Hope you find this answer suitable for resolving you query.

Anik Miu
Advocate, Bangalore
11015 Answers
125 Consultations

- The transfer of the property must be through a registered document and allotting the plot with survey demarcation and map is not enough for ownership. 

- The registration of deed required stamp duty and without the stamp duty the property cannot be registered in the name of purchaser , and hence the society is trying to do fraud with the allotteess / purchaser. 

- Further , the society only on the ground of notary transfer document cannot make member of the society. 

- You can lodge a complaint against the said society before the Registrar and Consumer forum as well after serving a legal notice. 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

Thanks  for your appreciation 

 

2) As per section 17 of the Registration Act, 1908, an agreement for the transfer of an interest in immovable property of value more than Rs. 100, is required to be registered. Thus, the sale deed of a property, such as a flat, building or land must be registered for the sale to be legally valid.

 

3)Section 54 of The Transfer of Property Act, 1882 provides that in case of immovable property like land, house of more than Rs.100, the sale can be made only by a registered document.

 

4) you can complain to the registrar that society is transferring plots on basis of unregistered agreement for sale 

Ajay Sethi
Advocate, Mumbai
99787 Answers
8146 Consultations

For making a complaint before the registrar  about the fact of sale of property without proper registration document you do not have to quote provisions of law , you are conveying your grievances in this regard.

It is for them to ascertain the facts and take necessary action as per law.

As per section 17 of the Registration act, it is mandatory to register the document pertaining to the transaction involving any immovable property for the value beyond Rs. 100/-

Besides such transfers are not recognised as legally valid as per the provisions of transfer of property act

T Kalaiselvan
Advocate, Vellore
89989 Answers
2493 Consultations

Dear Client,

You can registered a complaint against the agricultural society under section 17 of the Indian Registration Act,1908,for failing to register sale deeds and under Section 33 of the Maharashtra Stamp duty.The action of the society can be raise concerns under the Maharashtra Land Revenue Code,1966,for not updating the 7/12 extract to reflect individual ownership.

Thank you.Hope this answers your query.

Anik Miu
Advocate, Bangalore
11015 Answers
125 Consultations

- As per rule of the Societies Registration Act, any society registered may sue or be sued in the name of the president, chairman or the principal secretary or trustees, as determined by the rules and regulations of the society and, if no such posts have been established, then in the name of the person appointed by the governing body of the RWA for the occasion.

- Further, as per the rules of the Societies Registration Act, any member or non-member can file a complaint.

- Further, the Registrar of Societies is bound to take action against the errant RWA on a legitimate complaint.

- Further , as per law , a cooperative society, a welfare organization rather than a profit-driven entity, can be considered a consumer under the Consumer Protection Act.

- The complaint before the Consumer Forum can be filed under Section 35 of the Consumer Protection Act

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

Society cannot expel you on the ground that you have raised a valid grievance regarding evasion of stamp duty 

 

you can challenge your expulsion in cooperative court 

Ajay Sethi
Advocate, Mumbai
99787 Answers
8146 Consultations

With the documentary evidences for the money transaction for purchase of this property, the society cannot expel or deny the property, if they do that then you can file a suit either for execution of registered sale deed or for return of your money with interest.

T Kalaiselvan
Advocate, Vellore
89989 Answers
2493 Consultations

- The society has no right to expel you.

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

Dear Client,

In case, you file a complaint against your cooperative housing society and if they try to evict you, than they have to go through the legal process explained in the Maharashtra Cooperative Societies Act, 1960, specifically Section 35 which entails-eviction by passing of a voicing resolution by three-fourth members in a General Body Meeting with prior notice and an opportunity for hearing. In order not to face wrongful expulsion remember your rights and the reasons for expulsion like- failure in payment of dues or engaging in detrimental activities. If expelled without such procedures, you can appeal it to the Registrar of Cooperative Societies or sue it in civil court. On compensation, you will probably be paid for the shares you have in the society within three months if expelled, but this will only happen if the society does not forfeit it.

 

Hope you find this advice beneficial.

Anik Miu
Advocate, Bangalore
11015 Answers
125 Consultations

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer