Short Answer

Yes, a cooperative society can charge a transfer fee when a flat changes hands, but there are limitations on this fee as per the Gujarat Cooperative Societies Act, 1961 and Rules, 1965.

Detailed Explanation

Section 30 of the Gujarat Cooperative Societies Act, 1961 allows a cooperative society to charge transfer fees. The Act does not specify a fixed amount for this fee, but it should be reasonable and not arbitrary. The society can levy this fee to cover administrative costs associated with the transfer of membership rights from one member to another. However, the society cannot exploit this provision to impose exorbitant fees that may deter members from transferring flats.

Rule 148 of the Gujarat Cooperative Societies Rules, 1965 provides further guidance on transfer fees. It states that the society's by-laws should specify the amount of the transfer fee, which must be approved by the general body meeting. The rule also emphasizes that the transfer fee should be justifiable and transparent, ensuring that it does not become a source of undue profit for the society.

In practice, cooperative societies often charge a transfer fee when a flat changes hands. This fee is typically used to cover administrative expenses such as processing the transfer of membership, updating records, and conducting necessary verifications. The amount of the transfer fee varies from society to society but must adhere to the principles of reasonableness and transparency.

Real-world Scenarios

• Scenario 1: Mr. Patel wants to transfer his flat membership to his son. The society charges a transfer fee of Rs. 5,000, as specified in their by-laws and approved by the general body meeting.

• Scenario 2: Ms. Shah sells her flat to a new member. The society imposes a transfer fee of Rs. 10,000, which is deemed excessive by the members. They raise this concern in the next general body meeting, prompting a review of the transfer fee policy.

Reference

• Gujarat Cooperative Societies Act, 1961: Section 30

• Gujarat Cooperative Societies Rules, 1965: Rule 148