Society cannot demand 10 per cent of profit on sale of plot
2) transfer charges are fixed by govt and laid down in bye laws
3) in Maharashtra society can charge maximum Rs 25000
4) contact a local lawyer as to transfer charges fixed in your state
Transfer fees demanded by Housing Cooperaive Society Uttrakhand
I was the original member of a Housing society of Hardwar (uttrakhand). In 1982 i got a plot from socity at Rs.900/- I sold the plot in April 2016 as per the applicable circle rate of Hardwar at Rs.29.70 lacs. Now socity is asking me to make payment of 10% of profit on sale of Plot i.e.10% of (rs.29.70-Rs.0.01) According to them charges are per the rule of the society. Do the society can legally demand such profit on sale of the said plot? What is the maximum amount cooprative society can ask for
Asked 9 years ago in Property Law
Religion: Hindu
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6 Answers
The rules of the society cannot run contra to the law of the land and be a source of unjust enrichment. You should issue a lawyer's notice to the society to refuse the payment sought.
Do the society can legally demand such profit on sale of the said plot?
What is the maximum amount cooprative society can ask for
You must verify the rules of the cooperative housing society on the charges for transfers by sale or any means.
There is no question of 10@ of profit, the society cannot demand anything exorbitantly on its own without a provision for it in the rules or byelaws.
You refuse to pay stating there is no rule and if at all there is one, let them send a notice of demand quoting the rule, you can answer it legally.
One thing i want to know that, AS per the constitution only C.Govt has a power to collect tax on profit on sale of Property which C.Govt. collect from Income Tax. Even State Govt. has no power to collect any tax/duty on profit on sale of property than how any society can make bye laws which is against the Constitution & the Fundamental right of the people . Pl guide on this issue also According the the society in their Bye laws member has to pay 10% profit on sale of property. They have shown me the bye laws but did not provide the copy of Bye laws,Which i am planning to demand in reply of their demand letter for payment of 10% profit on sale of property. Even on Govt official site there is no notification or circular about the limit on collection of transfer premium by Housing society. Pl guide elobrately so that on the basis of your valuable advise we can locally discuss with legal consultant.
Asked 9 years ago
The society is wrong in asking for a share in the profit out of selling the property.
It is illegal and unlawful and not maintainable if they go to court.
The bye law is unconstitutional especially when he demand is exorbitant and unheard of law of the land.
You can challenge the bye law in the court of law for its constitutional validity.
Wait for them to issue a legal notice demanding the amount which you repudiate by a strong reply notice with carefully worded denial.
There is provision in cooperative societies act regarding transfer charges to be levied by society
2) obtain copy of bye laws . As member of society you are entitled to copy of bye laws
3) please check whether bye laws are approved by registrar cooperative society
/4) you will have to file writ petition in HC challenging said provision if approved by registrar
The demand of the society is prima facie illegal. Even if there is a bye law to this effect it can be challenged in the court which can declare it as illegal.