In Focus

No transfers within a year of purchase in CHS

By Gajanan Khergamker

Under the provisions of the New Model Byelaws, a person requiring to transfer his or her flat in a cooperative housing society should hold the share and interest in the said flat for a period not less than one year.

The would-be transferor should give the society a clear fifteen days notice in writing indicating the name of the proposed transferee, his/her consent, his/her application for membership and the value proposed to be paid by the transferee. The would-be transferor should also discharge all his or her due liabilities to the society.

Bye-law number 40 of the New Model Byelaws prepared under the Cooperative Societies Act has laid out the following provisions listed in detail with regards to the transfer of flats:

On receipt of a transfer notice from the transferor, the secretary of the society should place the same before the meeting of the committee, held next after the receipt of such notice, pointing out whether the member is prima facie eligible to transfer his/her shares and interest in the capital / property of the society, in view of the provisions 29 (2) (a) of the Act.

In the event of ineligibility of the member to transfer his/her shares and interest in the capital / property of the society, the committee should direct the secretary of the society to inform the member accordingly within three days of the decision of the committee.

If the committee is satisfied that the member in prima facie is eligible to transfer his/her shares and interest in the capital / property of the society, the committee should direct the secretary to inform the member within three days of the decision of the committee and to make pre-requisite compliances as laid under the law.

Undertakings/declarations have to be made in compliance with the provisions of any law for the time being in force, in such form as is prescribed under the bye-laws.

In spite of the said guidelines, some societies charge as high as Rs 1,00,000 sometimes even more for the transfer of flats which is sometimes called as ‘welfare fund’ or ‘donations’ which is clearly against the New Model Bye-laws.

To avail a legal service, an expert opinion or an appointment with Solicitor and Property Law Expert Gajanan Khergamker, call 8080441593