Buying a small flat in a cooperative housing society does not mean you can be treated unfairly or made to pay charges outside the law. Your case raises two serious issues — illegal collection of donation during transfer and perceived unfairness in maintenance charges for a smaller flat. Both are clearly addressed under the Model Bye-laws of Cooperative Housing Societies.
Transfer Fee Is Capped – Donation Is Illegal
As per Bye-law 38(ix), a society is permitted to collect transfer premium only up to the limit fixed by the State Government, which is currently ₹25,000. This amount must be approved by the General Body and cannot exceed the prescribed cap.
The society cannot demand or accept any additional amount in the name of:
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donation
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contribution
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corpus
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welfare fund
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or under any other pretext
Therefore, the additional amount taken as “donation” is illegal, irrespective of whether it was paid by cheque or cash.
Cheque Is Not a Receipt – Issuing Receipt Is Mandatory
The statement that “cheque itself is a receipt” is completely incorrect and unlawful.
Every payment made to the society must be acknowledged by an official receipt, duly signed by the Secretary or Treasurer and recorded in the society’s books.
Failure to issue a receipt amounts to:
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financial irregularity
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lack of transparency
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possible misappropriation of funds
You have a strong ground to complain to the Registrar against the managing committee for illegal collection and non-issuance of receipt.
Are Maintenance Charges Unfair for a Small Flat?
This is a common misunderstanding. Maintenance charges are not always based on flat size.
Bye-law 66 – What Are Service Charges?
Service charges include expenses such as:
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salaries of society staff
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security and housekeeping contractors
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electricity for common areas
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office and administrative expenses
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minor repairs and recurring costs
Bye-law 67 – How Are Charges Divided?
The bye-laws clearly differentiate between charges:
Service Charges
These are equally divided among all members, irrespective of:
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flat size
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carpet area
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whether the flat is 1RK or 3BHK
So, even if your flat is only 200 sq ft, equal service charges are legally valid.
Other Charges (Area-Based or Usage-Based)
The following charges vary based on criteria:
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property tax – as per municipal assessment
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water charges – based on number/size of inlets
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parking charges – only if parking is allotted
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sinking fund and repair fund – as per construction cost
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interest on delayed payments
If the society is charging any of these incorrectly, you have a valid grievance.
No Parking Slot Means No Parking Charges
Since you have not been allotted a parking slot, the society cannot levy parking charges on you in any form. Parking charges are recoverable only from members with allotted parking.
What Legal Remedies Are Available to You?
You may take the following steps:
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Write to the society demanding:
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refund of the illegal amount donation
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issuance of proper receipts
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Seek copies of:
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General Body resolution approving transfer premium
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audited accounts reflecting the amount collected
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If the society fails to comply, you may:
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file a complaint with the Registrar / District Deputy Registrar
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seek action for violation of Bye-law 38, 66 and 67
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allege financial irregularities and excess recovery
Conclusion
To summarise:
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₹25,000 transfer premium is legal; Extra donation is illegal
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Receipt is mandatory for every payment
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Equal service charges are valid, even for small flats
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Parking-related charges cannot be levied without parking allotment
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Registrar intervention is justified in your case
Knowing these provisions empowers you to stand your ground and demand lawful treatment.
