The Bombay High Court, in the case of Bharatiya Bhavan Cooperative Housing Society Limited and others vs Krishna H Bajaj and others (Writ Petition No 1094 of 2004, decided on February 17, 2010) allowed the appeal filed by the society, thereby, disentitling the flat purchaser from receiving a refund of an amount of Rs 9,63,000 paid to the society at the time of sale of the flat, by way of a voluntary contribution. The legality of payment of transfer charges demanded by a society, has been tested by the courts on numerous occasions, over the past few years. Legal judgements pertaining to transfer charges See also: All about non occupancy charges in cooperative housing societies However, Bylaw No 38 covers this eventuality as well and goes a step further, to qualify that ‘No additional amount towards donation or contribution to any other funds or under any other pretext, shall be recovered from the transferor or the transferee’. In order to not fall foul of the aforesaid ceiling on transfer charges, many societies often require the flat owner / purchaser to pay the demanded amount, by way of a ‘voluntary donation’. 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 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 question is, whether the law permits an exorbitant levy of transfer charges by a society. 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.

Transfer charges: Maximum permissible amount, by law Who pays society transfer charges buyer or seller?.Maximum premium rates for transfer charges.Can the board of directors of a cooperative housing society be dissolved?.Bombay HC judgement on property transfer charges.Legal judgements pertaining to transfer charges.Transfer charges: Maximum permissible amount, by law.

Society bye laws in marathi pdf