Cap on Transfer Fees and Non-Occupancy Charges levied by Co-operative Housing Societies.

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.


  1. NAYAN JOSHI says:

    I am residing in Duplex, it’s freehold duplex society constructed by builders and sold to owners in around 2002. Can we the same be registered under cooperative registration act and does members be charged for various fees, Transfer fees (up on sell), NOC etc ?

  2. AMIT PATEL says:

    is housing society registered as ‘Service society” can charge transfer fee?
    as per rules service society can not charge transfer fee for said transfer of shares,gujarat.

    if any circular available please share.

    also they(society) are asking “development fee” insted of transfer fee when they came to know about above said rules.
    are they eligible to charge development fee as they are registered as service society?
    is it mandatory to pay development fee for such transfer procedure?

    further bylaws of societies are not amended for same reason.

    i asked them (society) to give me demand letter which clearly mention transfer fee/development fee…but they even dont accept my application for transfer.

  3. Prashant says:

    Hi Mr. Rushabh, can you please share the circular you have mentioned above. It will be a great help.

    1. Rushabh says:

      Hello Mr. Prashant! Sorry for reverting late; I’ve clicked the pics of the circular but I’m unable to find an option to attach a pic here. You may share your e-mail address / Whatsapp no. & I can mail / Whatsapp the pics to you. In case you’re residing in Ahmedabad, will be happy to collaborate in case you’re facing a similar issue.
      You might also want to have a look at / sign the below petition on

  4. Rushabh says:

    Hi, thanks for the information & the link. Could you please also brief about the procedure to appeal/complaint if a society is asking for more than Rs.50,000/- as transfer fee.

    1. Nirmal says:

      Rules differ from state to state and apply to cooperative societies in Gujarat. If your property is situated in Gujarat then you may escalate the matter to jurisdictional Officer in Registrar of Cooperative Societies, Gujarat

    2. Rushabh says:

      Thanks for the reply. Yes, I’m based in Ahmedabad, Gujarat. I had also sought information under RTI & they’ve shared a circular which clearly states that Transfer Fee (including premium/any other name) should not exceed Rs.50,000/-; however, the society is asking for Rs.1.50 Lakhs & have not accepted our application for transfer. Surprisingly, most purchasers opt to pay the entire amount as asked for by the society either out of ignorance or to not get into any dispute as it involves a long period of time & unnecessary hassles in the day-to-day life. I’m also caught in a dilemma but this shouldn’t have been the position in the first place. Since you appear experienced here, what would you suggest?

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