Short Answer

When a society member sells their flat to another member, the procedure involves obtaining a no-objection certificate from the society, transferring the membership in the society's records, and updating the details of the new member.

Detailed Explanation

Section 29 of the Gujarat Cooperative Societies Act, 1961 deals with the transfer of shares or interest of a member. This section states that no transfer of the share or interest of a member in the capital of a society shall be valid unless approved by the society. This means that when a society member sells their flat to another member, they need to obtain a no-objection certificate from the society before proceeding with the transfer.

Rule 25 of the Gujarat Cooperative Societies Rules, 1965 provides detailed guidelines on the procedure for transferring shares or interest of a member. This rule outlines the steps involved in transferring membership, which includes submitting an application to the society along with the necessary documents, obtaining approval from the society's managing committee, and updating the society's records with the details of the new member.

In practice, when a society member decides to sell their flat to another member, they need to inform the society in writing about the proposed transfer. The society will then verify the documents, conduct any necessary inspections, and issue a no-objection certificate if everything is in order. Once the transfer is approved, the society will update its records to reflect the new member as the owner of the flat.

Practical Examples

• Mr. Patel decides to sell his flat in a cooperative housing society to Mrs. Shah. He submits an application to the society along with the sale deed and other required documents. The society's managing committee reviews the application, conducts an inspection of the flat, and issues a no-objection certificate. The membership is then transferred to Mrs. Shah's name in the society's records.

• In another scenario, Mr. Desai sells his flat to Mr. Mehta without obtaining the necessary approval from the society. The society rejects the transfer and informs both parties that the sale is not valid until proper approval is obtained as per the cooperative society rules.

References

• Section 29 of the Gujarat Cooperative Societies Act, 1961: Official PDF

• Rule 25 of the Gujarat Cooperative Societies Rules, 1965: Official PDF