The Law relating to formation, management and dissolution of Co-operative Societies is contained in the respective State Co-operative Societies Act.
1. Cap on Transfer Fees
The Gujarat State Co-operative Council has vide Resolution No. 9 dated 17.01.1991 communicated that the uniform transfer fee should at the rate of 10% of the difference of amount received from shares and the amount invested subject to minimum of Rs. 500/- and maximum of Rs. 50,000/-.
The same has been upheld by the Hon’ble High court of Judicature of the State of Gujarat in the matter of Arun Co-operative Housing Society Ltd. vs. State of Gujarat & Ors. (AIR 2003 Guj 253).
2. Cap on Non-Occupancy Charges
The Hon’ble High Court of Judicature at Bombay in the matter of Mont Blanc Co-operative Housing Society Ltd v. The State of Maharashtra (2007 (2) Bom CR 533) has capped non-occupancy charges at 10% of the amount of maintenance excluding property and municipal taxes.
The same must be duly considered & any non-compliance reported while auditing the financial statements and records of a co-operative housing society in accordance with Standards on Auditing (SA) 250 Consideration of Laws and Regulations in an Audit of Financial Statements issued by the ICAI.
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9 responses to “Cap on Transfer Fees and Non-Occupancy Charges levied by Co-operative Housing Societies.”
could the copy of the resolution No. 9 dated 17.01.1991 be made available. If yes, where can I find it?