Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer) 30 October 2010

Stamp Duty - Society's responsibility

When a flat is transferred in a Co-operative Housing Society Stamp Duty is payable by the transferee. The Model Byelaws for Co-operative Housing Societies do not say anything about stamp duty. So is it incumbent on a Co-perative Housing Society to check whether stamp duty, as required, has been paid, before approving the transfer and admitting the transferee as a member?

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V. VASUDEVAN (LEGAL COUNSEL) 30 October 2010

A Society has to exercise due care and diligence while recognizing a transfer. Since the Agreement for transfer of shares/property in a society requires to be duly registered, it would suffice for the society to get a certified copy (or the original can be verified) the duly registered Sale Agreement. Society need not check for the correctness of the stamp duty and the same is taken care of by the registrar.

Vasudevan

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer) 30 October 2010

Mr Vasudevan:

Thank you for the prompt and correct response.

MPS Ramani

akshay kumar bafna (chairman) 30 December 2012

Hello

I had a flat in a society and got the same registered through deed of declaration . The same was sold to one was my friends . Society is not transferring the same to the new owner under pretext to check with the registrar that the the new registration done is ok in all respect including stamp duty or not . They are just delaying the matter . Is it legal ...