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Q.

Can Society Take Transfer Charges if Transfer of Flat in Blood Relation?

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Hi, Let me share my insights on: Can society take transfer charges if transfer of flat in blood relation? The cooperative housing societies are prohibited from charging transfer fees when a flat is transferred to a blood relative. This principle is upheld by various legal precedents and is supported by cooperative housing guidelines.

  1. For instance, the Bombay High Court has ruled that societies cannot demand welfare fees for transferring membership, emphasising that only a transfer fee of Rs. 25,000 is permissible under the Maharashtra Cooperative Societies Act.

  2. Additionally, the Supreme Court of India has clarified that societies cannot charge transfer fees for transfers to blood relatives, reinforcing the legal stance that such transfers should not incur additional financial burdens.

  3. However, societies may charge a nominal administrative fee, typically ranging from Rs. 500 to Rs. 1,000, to cover the costs associated with updating records and issuing a No Objection Certificate (NOC). These charges are considered reasonable and are not classified as transfer fees.

It's important to note that these provisions apply specifically to transfers within the family, such as to a spouse, children, parents, or siblings. Transfers to individuals outside the defined family relations may be subject to standard transfer fees, as stipulated by the society's bylaws.

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