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Arch Zen   05 March 2023

Premium transfer fee

Hello, I am from Mumbai and in 2021 I gifted my house onto my mothers name. after some time I approached the society to transfer the share certificate on her name at that time they advised me that I will have to pay premium transfer charges of Rs 25,000.

Appreciate it if someone can please let me know if BY LAW am I required to pay this premium transfer fee even if the gift is done within family (My mother in this case) 

I am also surprised the society told me that you have paid stamp duty and registration so this is a transfer and not gift (Which I know is now right but any legal advise will be helpful to counter them).

Thank you. 


 5 Replies

T. Kalaiselvan, Advocate (Advocate)     05 March 2023

Assuming that the flat in question is situated in Mumbai and forms a part of a co-operative housing society governed by the provisions of the Maharashtra Co-operative Societies Act, 1960.

From a legal perspective, there is no difference in effecting a transfer of a flat in a co-operative housing society either by a mere transfer of shares issued by such a co-operative housing society by executing a transfer form or by executing a deed whereby both the shares and the right, title and interest in the flat are transferred. While the society cannot object to either of them, most people prefer the latter so as to document certain rights and other understanding between the transferor and the transferee.

From the stamp duty perspective, the Supreme Court has held that a transfer/sale of shares issued by a co-operative housing society would attract the same stamp duty as leviable on a conveyance. Therefore, the same amount of stamp duty would be payable on a transfer form whereby shares issued by a co-operative housing society are being transferred and on a deed of transfer/gift deed. Also, both instruments would have to be registered under the provisions of the Indian Registration Act, 1908, and applicable registration charges will apply.

As per the provisions of article 25 of schedule I of the Maharashtra Stamp Act, 1958, the stamp duty payable on a transfer form whereby shares issued by a co-operative housing society are being transferred or on a deed of transfer/sale deed, will be 5% of the market value.



If you have transferred your property to your mother by a gift deed, then it should have been done by executing a registered gift deed alone and not orally or by an unregistered document.


Dr J C Vashista (Advocate)     06 March 2023

As I could make out from the facts posted it is not the question of payment of stamp duty to Maharashtra government for registration of gift deed executed by mother in favour of son, but transfer of mother's share in cooperative society, isn't so ?

If so, Bye-Laws adopted by the cooperative society, Maharashtra Cooperative Societies Act and Rules on the subject has to be referred (charging such fees ihas been declared illegal and invalid in Delhi Cooperative Societies) 


Arch Zen   06 March 2023

Thank you Dr Vashista & T.Kalaiselvan for sharing you opinion.

The issue here is related to society charging Premium processing fee of Rs 25,000 in order to transfer the share certificate on my mother name, can you please advise if this is legal and is society allowed to charge this for gift deed done? 

P. Venu (Advocate)     06 March 2023

To my knowledge, transfer of property rights in flat by way of sale, gift etc,, is distinct from transfer of membership in the Housing Society. In Mumbai, maximum premium that could be charged by the Society is Rs. 25000/-. However, no premium could be sought by the Society if the transfer is among family members.

Arch Zen   08 March 2023

Thank, you. Mr Venu.

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