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Rajesh Dhoka (owner)     09 October 2010

Society Transfer formalities under SARAFAESI Act, 2002

I have purchased one flat in Mumbai, which was sold under SARAFAESI Act, 2002 by one of the Nationalised Bank.


I was not the direct bidder in the Auction process. The person who had won the auction has nominated me as a Transferee. Bank has also issued me a Sale Certificate Under Section 13 of the SARAFAESI Act, 2002, Which is duly registered and paid stamp duty.


Now society is not giving me a membership for the want of prescribed "Society Transfer Forms under Co-operative Act" needs to be signed by either the defaulter owner of the flat or by the Bank. Defaulter owner is a absconder and the Bank is refusing to sign the "Society Transfer Forms"


My Query is

1) Is it legal to ask to sign on "Society Transfer Forms" by the Society for flat Auction under SARAFAESI Act, 2002 ??

2) What else the options I can use against the Society to be able to get Membership ??

3) Is there any conflict between SARAFAESI Act, 2002 and Maharashtra Co-Operative Societies Act. ??


 3 Replies

V. VASUDEVAN (LEGAL COUNSEL)     09 October 2010

The Bank must cooperate with you. The Bank acquired title to the shares/ownership of the Flat from the defaulter, by virtue of the SARAFAESI Act, based on which it auctioned the Flat. Hence the Bank is duty bound to provide you all the supporting documents and also the transfer form. The Bank also ought to be in possession of the original share certificate pertaining to the shares in the society. This certificate also should be produced for endorsement in you name. The Bank representative and you can jointly meet the society management and produce the relevant documents. Society is right since it can't take cognizance of any transactions be it loan or sale as between the Member and third parties. It is only the Member who will be recognized by the society.

MRKGANDHI (Advocate)     09 October 2010

The attitude of the Bank is legally not correct. If the bank still do not come forward, the aggrieved person should approach even a consumer court. Probably then bank would realise and help the person.

SACHIN AGARWAL (ADVOCATE)     25 October 2010

I agree with Mr. Vasudewan.

The Bank is bound to co-operate you. You can request the Bank otherwise you can file a complaint before Banking Ombudsman

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