Hello,

 This is not appropriate and arbitrary and as such you may approach the registrar against such Bylaw that has been inserted by the society against statute.

You may move an application under section 80 for  issuance of the no objection certificate and the society has to dispose of the said application within 30 days and if you are aggrieved then you may approach the registrar under the said section

No it can only charge transfer fee up to maximum of 25000/-

 Yes you can make the payment but under protest. That is you must write in the receipt that you are making the payment under protest. You may also send them a legal notice in advance. Yes you can approach the registrar if some amount is being illegally charged by the society 

1) society cannot charge more than 25k as transfer charges 

2) you don’t have to pay one per cent of sale amount 

3) you don’t  need society NOC for sale of flat 

you can pay the said amount under protest and then seek refund of said amount paid by you 

Yes, you are right society can't charge more than 25k for transfer certificate and sinking fund has to collect from each member monthly because selling transcations of flat won't be on monthly or yearly basis. 

Selling transcations are done once a while how society can solve problems if any serious issue arise and no sell took place in 10 years.

So this is not right practice to collect 1% money as sinking fund.

You can send a written draft to registrar of CHS of your area, within one month the order will be passed .

1. No society can impose any charge at the time of transfer of any property of the member unless it is specifically provided for under the Act.

2. Since most of the Societies Act doe snot prescribe imposition of such tax or charge the conduct of the society to charge such money on the garb of Sinking Fund or otherwise is illegal and without any basis of law.

3. So if it is done by the society you will have to lodge complaint with the Society and seek redress therefrom or thereafter from high court to get refuns of your money or ther reliefs.

It is illegal act of society charging 1 percent of sale society cannot charge more then 25,000 as transfer fee file a complaint before the registrar of societies against the society.

Yes if buyer agress for no dues then you can go ahead and register the property in sub registrar office with buyer.

You can make payment now register the flat then you can proceed to recover the amount legally from society charged illegally by them , but see recovery can take some time.

1. Under the provision of model bye-law no. 38(d), there is no need of Society NOC for sale or whatever.

2. Sale Agreement can be registered without Society NOC.

3. FURTHER it would be a criminal offence to demand 1% of the sale amount in any guise /excuse, for which the seller can initiate criminal proceedins.

4. Issue a legal notice to the society (for records) about their illegal demands and direct them to withdraw such condition w.e.f., failing which You can file a Police FIR, requesting investigation and charge-sheet, for offences like cheating, intimidation, fraud, breach of trust etc.... against the person, supported with all relevant supporting documents.

5. IF the Police does not take action, THEN you can file private criminal case u/s 156(3) Cr.P.C., in the local Magistrates court, seeking directions to the Police to investigate and file charge sheet. The said Person may come down for settlement.

it depends upon bylaws of the society framed under the Cooperative Societies Act of the State. Apply to deputy registrar for a certified copy of by laws and pay the charges for the copy and check by laws. 

“A sinking fund is a fund established by an economic entity by setting aside revenue over a period of time to fund a future capital expense or repayment of a long-term debt.”

n the context of Cooperative Housing Society, “Sinking Fund” provisions have been made under Bye-Law No. 13 (C)for reconstruction of the building when the existing building is not safe for human habitation since it is difficult for the Cooperative Housing Society (service & non-profit organization having no other source of income) to generate such a huge fund in short period of time.

This provision helps cooperative housing society to collect contribution towards this sinking fund from the society members on month on month basis and keep on accumulating year after year by long term investment in accordance with Bye Law No. 15 and directions given under section 70 of the Maharashtra Co-operative Housing Societies Act, 1960.

An outgoing member cannot ask for the reimbursement of his accumulated contribution towards the Sinking fund under any circumstance / pretext however the new buyer / member may request to know the accumulated contribution accrued against the account of the intended flat to be purchased. As and when the flat is sold or the membership is transferred this amount invariably gets automatically transferred to the buyer’s account.

In accordance with Bye Law No. 13 (C), the General Body can decide the Sinking Fund contribution, subject to the minimum of 0.25% per annum of the construction cost of each flat incurred during the construction of the building of the Society and certified by the Architect, excluding the proportionate cost of the land.

Most of the Cooperative Housing Society takes the decision on the Sinking Fund Contribution at the time of taking over from the builder / developer / inception, which remains constant for years together, while the construction cost of the flat keeps on increasing.

Even though they may change the bye laws to accommodate such charges, since it would not have legal validity, you can challenge the bye laws in the registrar of cooperative societies or you can refuse to pay the same and drag the society to the consumer forum stating that the society adopts unfair trade practice in the name charges towards sinking fund with the support of changes in the bye laws or an amendment made arbitrarily without following the laws in this regard. An outgoing member need not pay the sinking fund once again at the time of selling the property to the buyer.

The registrar may sometimes refuse to register the property without NOC from the society, then you can drag the registrar to the court seeking direction against him for this illegal refusal.

Once you pay the amount as charged by the society it may be difficult to recover the same. 

Yes you can do so

Dear Client 

The society cannot charge you sinking fund at rate of 1% on sale amount.

They are only entitled to get 25000 rs as tranfer charges. 

You should make a complaint to registrar of society against the illegal funds collection by society.