Hsg societies to face strict action if they overcharge any member
As complaints rise, stringent order issued on legal action to be taken on cooperative committees that charge over Rs 25,000 as transfer fees
While cooperative housing societies are notorious for imposing some of the strictest rules for residency, they have now received a rap on the knuckles themselves from the government for exploiting new members that come to them.
After receiving several complaints that such societies are illegally levying extra transfer charges and transfer premiums from flat owners, the state commissioner for cooperation and registrar of cooperative societies has cracked down on these inconsistencies, issuing a stringent order to all deputy district registrars (DDR) of co-operative societies to initiate legal action against offending office-bearers, if found guilty of such actions.
The order, issued on August 10, has further stated that any managing committee discovered perpetrating such acts will be disqualified from contesting intra-society elections for the next six years.
It has been revealed over the course of several cases that managing committees of cooperative housing societies around the city have been violating bylaws of the Maharashtra Co-operative Societies (MCS) Act of 1960, charging more than prescribed amount of Rs 25,000 of flat transfer charges.
As per Section 79 of the said Act, as well as department-issued housing manuals, the premium amount of transfer charges should not exceed Rs 25,000 — the rules also dictate that while the maximum amount is this sum, it can also be reduced if the general body of the society decides to do so.
But, these regulations are rampantly set aside. “It has been seen that many cooperative housing societies are flouting existing directions and circulars issued by the department of co-operation, going on to charge more than the premium amount. Sometime, their general bodies pass illegal resolution to charge the extra sum under different headers. This is a gross violation of the rules,” the order sent out by cooperation commissioner Vijay Zade said.
He further said, “The flat owner or buyer concerned may approach the DDR with their complaint against any such illegal resolution passed by a management committee of a cooperative housing society. The respective DDR must take cognisance of the plaint and initiate action as per the law.”
At the moment, most cooperative housing societies charge a transfer amount of anywhere between Rs 50,000 and Rs 1.5 lakh.
Zade also said that flat buyers or owners have the right to sue office-bearers of a housing society under Section 91 of the MCS Act for irregularities, adding, “We have now instructed all regional officers and DDRs to ensure that there is no violation of any provisions of the MCS Act. Legal action can disqualify such committee members under Section 79 (3) of the Act.”
Zade explained that societies are formed to take care of maintenance, repairs, etc. in a smooth manner — however, when they demand high transfer charges from flat owners/buyers under headers like “reserve funds” and more, it becomes illegal.
While cooperative housing societies are notorious for imposing some of the strictest rules for residency, they have now received a rap on the knuckles themselves from the government for exploiting new members that come to them.
After receiving several complaints that such societies are illegally levying extra transfer charges and transfer premiums from flat owners, the state commissioner for cooperation and registrar of cooperative societies has cracked down on these inconsistencies, issuing a stringent order to all deputy district registrars (DDR) of co-operative societies to initiate legal action against offending office-bearers, if found guilty of such actions.
The order, issued on August 10, has further stated that any managing committee discovered perpetrating such acts will be disqualified from contesting intra-society elections for the next six years.
It has been revealed over the course of several cases that managing committees of cooperative housing societies around the city have been violating bylaws of the Maharashtra Co-operative Societies (MCS) Act of 1960, charging more than prescribed amount of Rs 25,000 of flat transfer charges.
As per Section 79 of the said Act, as well as department-issued housing manuals, the premium amount of transfer charges should not exceed Rs 25,000 — the rules also dictate that while the maximum amount is this sum, it can also be reduced if the general body of the society decides to do so.
But, these regulations are rampantly set aside. “It has been seen that many cooperative housing societies are flouting existing directions and circulars issued by the department of co-operation, going on to charge more than the premium amount. Sometime, their general bodies pass illegal resolution to charge the extra sum under different headers. This is a gross violation of the rules,” the order sent out by cooperation commissioner Vijay Zade said.
He further said, “The flat owner or buyer concerned may approach the DDR with their complaint against any such illegal resolution passed by a management committee of a cooperative housing society. The respective DDR must take cognisance of the plaint and initiate action as per the law.”
At the moment, most cooperative housing societies charge a transfer amount of anywhere between Rs 50,000 and Rs 1.5 lakh.
Zade also said that flat buyers or owners have the right to sue office-bearers of a housing society under Section 91 of the MCS Act for irregularities, adding, “We have now instructed all regional officers and DDRs to ensure that there is no violation of any provisions of the MCS Act. Legal action can disqualify such committee members under Section 79 (3) of the Act.”
Zade explained that societies are formed to take care of maintenance, repairs, etc. in a smooth manner — however, when they demand high transfer charges from flat owners/buyers under headers like “reserve funds” and more, it becomes illegal.
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