Tranfer fee in society

chandravijay gohil (Querist) 07 September 2020 This query is : Resolved
Hi Sir,

I live in Gandhinagar, Gujarat and i purchased flat in 2017 in resale and society started process of issuing share certificate from 2019 so i wanted to understand that can they ask for transfer fee of all resale registry which arr done before the date of society regsiter ( I mean can they ask for back dated transfer fee). Is this legal?

Thanks
Chandravijay Gohil

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Quick Summary

A homeowner in Gandhinagar, Gujarat, is questioning the legality of their society demanding backdated transfer fees for resale flats purchased before the society's registration date. Experts suggest that if the society's bylaws do not explicitly permit such backdated charges, the demand may be illegal. It's advised to check the society's specific bylaws and potentially challenge the demand in court or with the Gujarat Registrar of Cooperative Societies.

Isaac Gabriel (Expert) 08 September 2020
Once the flat is sold for the upset price, the question of transfer fee not arise. Neverthless, be it a cooperative or society under the restration Act, the management has to abide by the bylaws.

P. Venu (Expert) 08 September 2020
Any suggestion depends upon the law under which the society is registered and the provisions in the Society's bye-law as to transfer fee. On general terms and as a matter of common knowledge, transfer fee in such cases appears to be arbitrary and unreasonable.

Rajendra K Goyal (Expert) 08 September 2020
Bye laws and provisions of society need to be referred. In absence of specific provisions, such claim would be illegal, should be challenged before the court.

Hemant Agarwal (Expert) 08 September 2020
1. There was no "Privity of Contract" between the Society & Present Flat Owner, BEFORE date of Society Registration. Hence the law of estoppel shall apply which bars the Society from collecting any type of money /transfer fees /whatever.... from before date of Society registration.

2. IF the Society forces this, THEN it will constitute criminally prosecutable offences of Intimidation, Breach of Trust, Nuisance, Extortion, Mischief, etc.... alongwith "unfair trade practices" under the Consumer Protection Act.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com

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kavksatyanarayana (Expert) 08 September 2020
The terms and conditions for a transfer fee when a resale has occurred shall be noted. If bylaws have such clause then the society can collect transfer fees. Otherwise, you can complain against society to the MD, Housing Board or RERA as the case may be.

Dr J C Vashista (Expert) 09 September 2020
It is illegal demand of the CHS.
Challenge it before Gujarat Registrar Cooperative Societies or civil court of jurisdiction through a local lawyer.

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