By Legal Bureau
In a land mark judgment Bombay High Court had said that you cannot ask for a refund unless you prove you were forced to pay the sum over and above the limit of Rs.25000/-.
The court has held that members of a co-operative housing society cannot seek a fund of transfer fees paid for transferring shares in his or her name unless they prove that the amount was paid under coercion. This is because the Society Act in Maharashtra states charging more than Rs.25000 as transfer fees is illegal.
Mr. Justice Roshan Dalvi reversed the order of a co-operative appellate court which had directed Bhartiya Bhavan Co-operative Housing Society Ltd. At Marin Drive to refund Rs.9.63 lakh to its member Krishna Bajaj.
this will turn out to be an important case law
this judgement will be misused by the socities. they will take transfer fees above 25k as voluntry donation nd refuse to refund using this court order. the poor buyer suffers. the order can be challenged before division bench by affected persons or a pil can be filed by rwas,ngos,hsg fed and others.
such an irony. some members and m.c’s in mumbai under various disguises are collecting hue sums from buyers/sellers which is nothing short of extortion.
its easy to say approcah the Registrar’s office but we all know how much under pressure people are while doing a home transactions.
why doesn’t the govt make it compulsary that any contribution in a housing society should be by all members. this judgment should be appealed against.
This will be against the gullible buyers as society committee members will charge without any fear the amount above Rs. 25,000/- by way of voluntary donation or voluntary contribution or alike unless the member complains the Dy -Registrar and pays only 25,000/- by cheque to the society and refuses in writing any amount above the legal limit and after waiting for a month get the flat transfer process done through the Dy Registrar or wait for more time and the TRANSFER SHALL BE DEEMED TO HAVE BEEN DONE beyond six months…. the buyer needs to be patient and seek legal process help – UNFORTUNATELY which is lacking in the buyers largely….
How do you prove co-ercion? The Society will not demand the extra money in writing. The Society will, on the contrary, will ask for a letter from the transferor or transferee a letter to say he is giving a donation to the Society of his own free will, notwithsanding the Income tax implictions.
What are the remedies? Perhaps if the decision to take extra money in any form is minuted in a Resolution at the AGM or Managing Committee meeting, could be a good evidence(?) Or any other circumstantial evidence, like a witness when the money iwas demanded?