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suresh nair (service)     02 February 2022

Transfer of shares

1) My housing society has passed a resolution and made it  part of the society rules that if a member has done some unauthorized extension/construction in his flat and if he wants to sell the flat without regularising it, the society will not issue NOC for sale and also his share certificate will not be transferred to the buyer's name till the unauthorized extension/ construction is regularised. 

Can the society legally correct in passing such a resolution?

2) If the answer to the above question is in affirmative,  then can this rule be applied on a transfer of shares to his wife under a gift deed? Incidentally both are joint owners.


 6 Replies

kavksatyanarayana (subregistrar/supdt.(retired))     02 February 2022

If such a clause is mentioned in the society bylaws, it is ok and no such rule for the transfer of share to the wife under a gift deed in my view.  

suresh nair (service)     02 February 2022

The bye Law only mentions about penalty of 5 times society charges till it is regularised. We are charging 5 times the society charges on the area he has extended. The denial of transfer of share in such cases was adopted in the AGM.

Aryan Raj   03 February 2022

In response to your query,

Nobody can prevent you from selling your home. However, you should review your society's articles of association, particularly the terms and circumstances for the sale and acquisition of property. Any objection must be genuine and in accordance with the law. You can challenge it if it isn't. And in your case the regulations seem to violate your rights therefore I suggest you to take a legal action. 

And definitely no objections can be made if you are transferring the ownership to your wife.


Aryan Raj 

Kishor Mehta (CEO)     03 February 2022

1. Any structural changes, additions and/or alterations need written permission from the landlord/society as also from the local municipality. 

2. It is in your own interest to get the modifications regularized. The society can not refuse NOC if all the society dues are paid. 

3. The society can not stop you from gifting your flat to your wife, society can not refuse to transfer the share certificate if a valid gift deed is properly stamped and executed. 

1 Like

Dr J C Vashista (Advocate)     04 February 2022

I fully agree with the opinion and advise of expert Mr. Kishor Mehta.


suresh nair (service)     15 February 2022

Thank you all for your expert opinions on the subject. 

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