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Gopinath K Menon   31 October 2015

Refusal to transfer shares by co op housing service society

Gentlemen

I had purchased a house under resale from the existing owners and executed sale deed.  The maintenance of the society is managed by a Service society registered with the local Registrar of Co Op Housing societies.

This service society demanded Rs 3 00 000 towards share transfer fee, which I had objected to.

As per the bye laws of the society, the amount payable is Rs 500 towards donation and Rs 5 for entrance fee for getting these 5 shares valued Rs. 250 total transferred.

I was paying annual maintenance regularly in advance at Rs 20000 p.a. for the last two years and paid upto 31 March 2016, for which society had issued receipt in my name.

In addition, society holds interest free maintenance deposit of 50,000 from each owner of the house,on which the society earns. (total deposit from 46 houses is 23 lakhs).

Now society is not willing to transfer these shares to my name but asking for 3 lakhs.

They had issued me a legal notice through an advocate.  In turn I had discussed the issue with the Registrar of Societities who had advised me to file a case with the Nominee court, which I did.

The society had stopped the gardner and the sweeper to attend any work at my house from Sept 2015.

They threatened to cut the water supply, but so far water is supplied.

What further action I should take to bring a legal solution.

Mine was the first transaction in the society and thereafter two transactions taken place, where the new buyers fearing legal notice paid Rs 3 lakhs to the society.

The society does not have any approval from the Registrar to accept such sum.

Pls adv.

 

rgds

 



Learning

 12 Replies

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     31 October 2015

Please state in which State and city you are. Laws change from State to State.

Gopinath K Menon   31 October 2015

sorry, i missed this vital info.

i am in ahmedabad district of gujarat

 

tku sir

 

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     01 November 2015

Co-operative laws in Maharashtra and Gujarat are similar as once upon a time both together were one Bombay State. In the first place I have to say it is not just a 'service society'. It is a co-operative housing society which is more than just a service society. It is illegal to collect a large amount like Rs.300000/- for a transfer. In Maharashtra the Society can collect a transfer premium and the maximum amount is Rs.25000/-. Further the amount can be collected from the tranferror and not from the transferee as it is the transferror who makes a profit while transferring his flat. Legal notice to you is an empty threat. What have they written in the notice? Have they quoted any sections of Co-operative law, Rules or your byelaws in the notice? Did you apply for transfer of shares and for membership of the Society? Did they accept your application and give you  an acknowledgement? If they had accepted your application, they should give you a reply within a stipulated time. The time limit would be mentioned in your byelaws as well as the Co-operative Societies Act. In Maharashtra it says that if no reply is given, you will be deemed to have been accepted as a member. In case the Society refuses to accept the application form and other papers from you, you can submit them to the Deputy Registrar having jurisdiction over your Society. The Registrar will in turn send the papers to the Society and ask for their reply. The Registrar will decide based on the reply received from the Society. If the Society does not reply  the Registrar will order the Society to admit you as member. Transfer premium was pegged at Rs.25000/- in Maharashtra more than 25 years ago. The cost of flats have increased severalfold since. But the premium has not been increased. It may be higher or it may have been increased in Gujarat. Cost of the shares are paid to the person who transferres the flat to you.  Can you attach a copy of the lawyer notice received by you?

Personally according to me Co-operative Housing Societies are outside the purview of the Consumer Protection Act. But in Maharashtra Consumer Forums are entertaining cases against Societies. You can also try.

Gopinath K Menon   01 November 2015

sir, 1) society had issued no dues and no objection letter when the house was sold to me by the original owner. in that letter they had mentioned that the shares will be transferred on receiving 300000 towards share transfer fee. 2) I had objected to it and the matter was referred to the Registrar. Obtained a copy of our society's bye laws from Registrar by lodging RTI application as society was not willing to part with. 3) Had written to Registrar and the Registrar in turn written to the society to follow the bye-laws. The bye laws clearly mentions Rs. 500 towards bakshish and Rs 5 towards entrance fee. 4) I had lodged my application for share transfer on the guidance of Registrar with the society. Society in turn sent me a legal notice. It is in Gujarati (if you can follow I can scan and send to you). 5) I had approached Registrar who had asked me to proceed legally so I filed a case with Nominee court in Ahmedabad, of which first hearing is yet to take place. 6) Society stopped the services of sweeper at my house. They had threatened me saying disconnection of water supply. 7) I had paid annual maintnenace upto 2016 March and society had issued receipt in my name. 8) From my house, the society holding 50000 towards interest free maintnence deposit. 9) society is not allowing gardner to work at my house, whom I am paying from my pocket. 10) I have now lodged official complaint with the registrar with a copy of the legal notice served on me and I am just waiting what action the Registrar is going to take. 11) If Registrar fails to take any action, what step I should take to bring the society into books. rgds

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     02 November 2015

Have you purchased a flat in a building or a house in a premises society?  You are saying that the Society is not allowing sweeper and gardener. If it is a building type society it will not be possible to stop the services for you alone. What is nominee court? I have not heard anything here like that. We have co-operative courts. There are also other civil courts. Have you engaged a lawyer?  You apply to the court for an injunction against the Society preventing them from stopping of services to you and for not to cut water supply pending disposal of the case. These are normal things which any good lawyer should advise. Cutting water supply is a criminal offence. Has the Society issued in writing the threat to cut water supply?  If so,  you approach the police and make a complaint. Otherwise you go to the police and find out what they say.

You should go by the advice of a good lawyer rather than that of the Registrar. I what language are the proceedings in the court? Do you know Gujarati?

I do not know Gujarati. If possible send me a gist of what the lawyer notice contains, particularly if they have quoted any Sections of laws.

Gopinath K Menon   03 November 2015

sir, i had (on the suggestion of Registrar's office) taken the services of a learned advocate and filed the case in NOMINEES COURT, which handles co op society related issues in Ahmedabad.

The first hearing was scheduled for 30th but postponed.  

The society thru their advocate had given oral assurance to the court that water connection will not be cut.  If they do, my advocate had agreed to proceed with criminal case etc against the society.

the proceedings here is in gujarati and i am well versed.

there are several other illegal issues the society had committed.  i had submitted a detailed complaint to the Registrar too and their action is awaited.

 

rgds

 

Gopinath K Menon   03 November 2015

sir, i had (on the suggestion of Registrar's office) taken the services of a learned advocate and filed the case in NOMINEES COURT, which handles co op society related issues in Ahmedabad.

The first hearing was scheduled for 30th but postponed.  

The society thru their advocate had given oral assurance to the court that water connection will not be cut.  If they do, my advocate had agreed to proceed with criminal case etc against the society.

the proceedings here is in gujarati and i am well versed.

there are several other illegal issues the society had committed.  i had submitted a detailed complaint to the Registrar too and their action is awaited.

 

rgds

 

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     06 November 2015

You are saying that you have paid service charges to the Society up to March, 2016. Still they are not giving you the services of the sweeper and gardener. Your case in the court can go on for months or even years. You cannot until then remain without the services especially since you are paying for the services. There is a legal term called "balance of convenience". In this case it is against you because if the case is delayed indefinitely the Society will not lose anything but you will have to remain without the services. Hence you should talk to your lawyer and get an order to the Society from the court that they should continue all the services to you the same way as they give to other members until the case is finally settled. If so even if the case is delayed you will not suffer.

Gopinath K Menon   07 November 2015

yes sir... my advocate is working to obtain an interim order directing the society not to disturb the existing services.  he had assured that it will be done.

if by any chance it is not received, should i debit the society quarterly for the services paid but not provided and adjust from the next year's maintenance charges.

do you have any panel advocate in ahmedabad from whom i can seek guidance on certain other issues.

rgds

 

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     09 November 2015

The court has to give order to continue your services. In case the court does not give order you cannot do anything. If the court declines to give order you can go on appeal to the High Court. Or you can ask the lower court to order the Society not to collect service charges until and unless the services are provided. But most probably the court will give order to the Society for restoration of services to you. You can take advice of your lawyer to link the payments to providing of services while initially praying to the court.

Virendra Vaghani   28 January 2019

sir,  What is the current status of the case 

hopefully it may have ended well and decision has been in fovour of you

 

Hardik Chauhan   21 December 2020

 88 6611 7741

If you belong to the Ahmedabad.... and part of housing service co-operative society.

 

 

Originally posted by : Gopinath K Menon

Gentlemen

I had purchased a house under resale from the existing owners and executed sale deed.  The maintenance of the society is managed by a Service society registered with the local Registrar of Co Op Housing societies.

This service society demanded Rs 3 00 000 towards share transfer fee, which I had objected to.

As per the bye laws of the society, the amount payable is Rs 500 towards donation and Rs 5 for entrance fee for getting these 5 shares valued Rs. 250 total transferred.

I was paying annual maintenance regularly in advance at Rs 20000 p.a. for the last two years and paid upto 31 March 2016, for which society had issued receipt in my name.

In addition, society holds interest free maintenance deposit of 50,000 from each owner of the house,on which the society earns. (total deposit from 46 houses is 23 lakhs).

Now society is not willing to transfer these shares to my name but asking for 3 lakhs.

They had issued me a legal notice through an advocate.  In turn I had discussed the issue with the Registrar of Societities who had advised me to file a case with the Nominee court, which I did.

The society had stopped the gardner and the sweeper to attend any work at my house from Sept 2015.

They threatened to cut the water supply, but so far water is supplied.

What further action I should take to bring a legal solution.

Mine was the first transaction in the society and thereafter two transactions taken place, where the new buyers fearing legal notice paid Rs 3 lakhs to the society.

The society does not have any approval from the Registrar to accept such sum.

Pls adv.

 

rgds

 

 


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