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Rohan   03 April 2026

Seeking legal clarity on validity of “moving in/out charges” imposed by a society

Seeking legal clarity on validity of “moving-out charges” imposed by a cooperative housing society (Karnataka)

I would appreciate inputs from legal experts on the following situation:

My cooperative housing society (Rachenahalli) has implemented moving-in/moving-out charges of ₹2,500 for a three-wheeler and ₹5,000 + GST for a van, as approved in a General Body Meeting.

However, in my case:

  • My flat is on the ground floor (no lift usage involved)

  • The same flat charges were applied without any cost breakdown or justification

  • The only service effectively provided was opening of the main gate and allowing workers/labourers to enter

  • Upon questioning, I was informed by the General Secretary that if the charges were not paid, workers/labourers would not be allowed entry for shifting

From my understanding, under the Karnataka Cooperative Societies Act, 1959 and general cooperative principles:

  • Charges must be reasonable, non-arbitrary, and linked to actual services or costs

  • Even GBM-approved rules must satisfy tests of fairness and proportionality

  • Societies should not enforce rules in a coercive manner (e.g., restricting access/movement)

My questions:

  1. Are such flat, non-usage-based moving charges legally sustainable?

  2. Can a society deny entry to workers/labourers to enforce payment?

  3. Does applying GST on such charges require the society to justify it as a defined service?

  4. What legal remedies are typically available in such cases (Registrar, consumer forum, etc.)?

I have already paid the amount to avoid disruption but would like to understand the legal position and whether this policy can be challenged or revised.

Any case laws, statutory references, or practical guidance would be greatly appreciated.



 6 Replies

Dr. J C Vashista (Advocate )     04 April 2026

If you feel the charges ( stated to have been approved in GBM) are unreasonable, arbitrary and not-linked to services provided by the Society to the member(s) did you / any other member of the Society raise objection and/or challange it before the Karnataka Registrar Cooperative Societies ?

It would be better/appropriate to consult and engage a local prudent lawyer for proper appreciation of facts/ Act, Rules applicable on the issues with Bye-laws adopted by the Society, professional advise and necessary proceeding.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     04 April 2026

The charges and actions of the Society do not appear reasonable. I do not know what the laws are in Karnataka. If it were in Maharashtra one can go to the Registrar or the Co-operative court.

Vidhi Joshi (Trademark Registration Mumbai | IPR Firm | Mumbai | Start Up Lawyer | Copyright Lawyer)     04 April 2026

approach cooperative court, moreover you can intiate action against the commitee under Section 126, 308, 351 of bns. 

Rohan   04 April 2026

There were objections by a few members in the past who did not take it to the court but gave into it. I have currently notified the MC on the societys main group to keep track of the communication and review it in the GBM. If this is not resolved at the society discussion, I would like to escalate it. However, the problem is I will be moving out of the city and not sure how I can do it from out of the state.

Dr. J C Vashista (Advocate )     05 April 2026

If you are personally out of station, you may appoint attorney / engage some local lawyer to proceed in the case, which do not require your personal attendence.

In case some other members of the Sociity can join you in esclating the matter, it would give more weightage to the case.

T. Kalaiselvan, Advocate (Advocate)     05 April 2026

If you are aggrieved by the unreasonable demands of the society then you can take it up legally first with the society through a  notice to them either by yourself or through a lawyer and after that you can take a decision to escalate the matter through an appropriate legal forum for relief  and remedy. There is no anser to your non availability to take up the matter legally, you may have to take care or  adjust accordingly to all such further issues. 


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