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___Raja___ (x)     19 July 2022

Transfer of flat within one year of purchase

Dear Experts,

There is a member in the society who had purchased a flat less than a year ago and now wishes to sell it off. As per section 29b of the MCS act, the transfer of a flat cannot be done within one year. I also read on some forums that this section has been removed in the amendment to the MCS act 2019, but I could not find any official reference to the same. 

Request someone to clarify the current position on this and if at all this section has been removed, provide reference to some official document which states this so that we can comply with it. 

Thanks



Learning

 7 Replies

Env Coord (.)     19 July 2022

A similar query has been answered by on this forum, see the link below:
https://www.lawyersclubindia.com/forum/section-29-2-a-of-the-maharashtra-co-operative-societies-act-1960-219748.asp

 

___Raja___ (x)     19 July 2022

Originally posted by : Env Coord

A similar query has been answered by on this forum, see the link below:https://www.lawyersclubindia.com/forum/section-29-2-a-of-the-maharashtra-co-operative-societies-act-1960-219748.asp 

Actually this does not answer the question. I find many such responses, but dont find the amended clause in the 2019 ordinance of the MCS act. Hence asking if anyone can point me to the correct official document regarding this where it is clearly mentioned

 

Kishor Mehta (CEO)     19 July 2022

There is no the time limit for transferring/selling of an ownership flat, short term capital gains tax is applicable on sale of an ownership flat if done within two years of purchase.  

1 Like

P. Venu (Advocate)     19 July 2022

As I could ascertain, Section 29 forms part of Chapter III dealing with Members and their Rights and Liabilities.  And Section 29 deals with "Restrictions on transfer or charge on share or interest"  and not "Transfer of Flat".

___Raja___ (x)     19 July 2022

Isnt transfer or share the same as transfer of flat? How can someone transfer the share without selling the flat? Even the bye laws talks about transfer or shares or interest and not specifically selling the flat. It means the same in my opinion. The question is whether such transfer is allowed within one year of purchasing the flat.

Kishor Mehta (CEO)     19 July 2022

 

The whole concept of Co-oprative housing society is not properly understood. In a CHS the owner of the building property is the society and the members are share holders and are allowed to occupy flats by virtue of their share holding. They are not the owners of the flat of their occupation. Hence the matter of selling does not arise. The share certificate can only be transferred. There is no time limit for the share holding. 

___Raja___ (x)     19 July 2022

My query is very clear. Refer the following section of MCS Act

29 (2) A member shall not transfer any share held by him or his interest in the capital or property of any society, or any part thereof, unless- (a) he has held such share or interest for not less than one year;

Is this still applicable or is it removed by some amendment. If it is removed, then link to the ordinance where it specifically mentions it


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