Housing society share transfer charges legalities

NO.

The society has issued one share to the mother daughter duo, which will be counted as sole (ONE) share in the liability side of society accounts while preparing its balance sheet.

In society transfer fees, in the case of a gift deed, you must give the society Rs. 500 as a transfer “fee.” The bye-law is very clear in this regard: If the transfer is within the family (defined by the bye-law as including mother, father, brothers, sisters, sons, daughters, sons-in-law, and daughters-in-law), then society CANNOT demand the transfer “fees/premium,” not even as “donation” or under any other pretext.

If the society is still insisting on payment of the transfer fees in the above said occasion, the member can protest and can refer the matter to the Deputy registrar concerned and get a direction to the society to not to charge any fees towards the transfer by a gift deed within the relatives or within the shareholders. 

Members should protest against any such resolution being enacted in societies where there are presently no housing society transfer charges rules on paying the transfer charges as voluntary gifts or in any other way because it goes against the spirit of the legislation. Members can only stop such measures if they voice their concerns appropriately.