What are the provisions regarding transfer of flats?
Section 29 of the Maharashtra Co-operative Societies Act, 1960 and Rule 24 of the Maharashtra Co-operative Societies Rules, 1961 and Bye-laws 19,20,71(a), (b) and(c) are the major provisions concerned with the transfer of flats.
Section 29 of the Maharashtra Co-operative Societies Act refers to the restrictions of transfer or charge on share or interest. The member who intends to transfer his/her flat should hold share or interest for not less than one year. Maharashtra Co-operative Societies Rules, 1961 (Rule 24) states that No transfer of share shall be effective unless:
b) A clear 15 days' notice in writing is given to the society.
c) All liabilities of the transfer or due to the society are discharged; and
d) The transfer is registered in the book of the society.
What is the procedure to transfer of flats under the new model bye-laws ?
After completing these requirements the application is placed before the managing committee for transfer and the managing committee will examine whether the party to transfer has paid the necessary transfer fee. Bye-laws 40 of New Model Bye-law prepared under the Co-operative Societies Act, refers to the following requirements, viz:
a) A member desiring to transfer his/her shares and interest in the capital/property of the society, shall give 15 days' notice of his/her intention to do so to the Secretary of the Society in the prescribed form, along with the consent of the proposed Transferee, in the prescribed form.
b) On receipt of such notice, the Secretary of the society shall place the same before the meeting of the committee, held next after the receipt of the notice, pointing out whether the member is prima facie eligible to transfer his/her shares and interest in the capital/property of the Society, in view of the provisions of Section 29(2)( a) of the Act.
c) In the event of ineligibility of the member to transfer his/her shares and interest in the capital/property of the society, the committee shall direct the secretary of the society to inform the member accordingly within three days of the decision of the committee .
d) If the committee is satisfied that the member is prima facie eligible to transfer his/her shares and interest in the capital /property of the society the committee shall direct the Secretary of the society to inform the member within three days of the decision of the committee to make the compliance as under:
1) To submit an application for transfer of his/her shares and interest in the capital /property of the society in the prescribed form along with the share certificates ;
2) To submit an application for membership of the proposed transferee in the prescribed form;
3) To give valid reasons for proposed transfer;
4) To discharge all the liabilities to the society;
5) To pay the transferee fee of Rs. 50;
6) To remit entrance fee of Rs.10, payable by the proposed transferee ;
7) To pay the amount of premium at a rate by the General Body Meeting not exceeding five per cent of the difference between the book value of the flat and the price realised by the Transferor, on transfer of his/her flat subject to a maximum of Rupees One Thousand only;
8) To submit " No Objection Certificate ", required under any law for the time being in force or order or sanction issued by the Government, any financial agency or any other authority.
9) To furnish the undertaking/declaration in compliance with the provisions of any Law for the time being in force, in such form as is prescribed under these bye-laws . The transfer fee varies from society to society though Clause (vii) of Bye-law 40 has given certain guidelines mentioned therein. In spite of the guidelines some Societies charged even more than Rs.1,00,000 for the transfer of flat which is sometimes called "Welfare Fund"