Share certificate Money/Entry Fees

[yogesh abbi]

Dear Rejimon,

I have recieved complaints from no. of people of various CGHS in Dwarka regarding the annomalies in charging share money from all buyers of flats from original allottees.The original allottee is not refunded the share certificate money by the Management and instead they demand share certificate money along with the transfer money of Rs 610/-,from the new buyer.In my opinion,share certificate money is paid only once at the time of initial allotment and not each time it is sold to another buyer for the following reasons:

      a)  The share certificate money is against the value of the property allotted initially.

      b)  Since the value of the property keeps changing the value of the share certificates should also go up propotionately.

 

The society keeps demanding share certificate money along with the transfer fees and deposits the share money in the corpus fund of the society which is totally illegal.I think,there is some court ruling also on this.

 

Is anyone aware of the court ruling on the subject???I shall be highly obliged if some one could throw some light on it before I get on with the task of asking for some accountability from the people/CGHS restorting to such malpractices.

 

Regards,

Col (Retd) Yogesh Abbi

9871554433 

[REJIMON C K]

Sir,

Kindly refer the DCS Act 2003 and DCS Rule 2007 on the RCS website

 

92. Restriction on transfer of share or interest of a member:

(1) Subject to the provision of section 79 and 91 a person after allotment of flat or plot as per

section 77 may transfer share or interest therein by registered agreement for sale or

registered sale deed, as the case may be, provided that the transfer of share or interest in

respect of leasehold properties shall be governed by the terms of the lease.

(2) If such a person desiring to transfer his share or interest of a co-operative housing society,

he shall give fifteen days notice of his intension to the co-operative housing society in the

Form - 18. On receipt of such notice the committee of the co-operative housing society

shall give consent to the transferer to transfer his share or interest in Form - 19 within 15

days time failing which the consent is deemed to have been granted. If the purchaser

having registered agreement for sale or registered sale deed, or registered power of

attorney as the case may be, in respect of such plot or flat may apply for transfer of share

and interest in Form - 20 and alongwith an affidavit in Form - 21 alongwith transfer fee

by pay order or demand draft as per section 91 of the Act to the common good fund of

such co-operative housing society and requisite share money and admission fee as per the

provisions of the bye-laws of the society.

(3) No other amount towards donation or contribution on any other pretext or name shall be

collected by the committee from the transferor or the transferee.

(4) On receipt of application for membership under sub rule(2), the committee shall consider

and examine it as to whether the person is prima facie eligible to become member of the

cooperative housing society under the provisions of the Act, Rules and bye laws of the

co-operative housing society.

(5) If any clarification is required, the committee shall inform such person about deficiency

found in the form within fifteen days of the receipt of the application form.

(6) The transferee shall submit the following documents alongwith application form for

satisfaction of the committee:

(a) Affidavit on a stamp paper of Rs. 10/- for discharging all the liabilities to the

cooperative society in respect of the flat/plot or common areas which may be

outstanding against the allottee or occupant of the flat or plot within a period of

ninety days of raising the demand by the society

(b) Attested copy of duly registered sale deed, agreement to sell and conveyance

deed; as the case may be.

(c) Original share certificate issued to the allottee and in case the original share

certificate is not available, the transferee shall execute an indemnity bond to

indemnify the society for any losses caused on this account.

(d) Receipt of transfer fee of five hundred rupees for the Common Good Fund of the

co-operative housing society;

(7) On the receipt of the document mention in sub rule(6) committee shall transfer the

membership to the transferee within thirty days.

(8) In case the committee fails to take a decision within prescribed time or rejects the

application the applicant may file an appeal before the Registrar, who shall decide it within

ninety days time.

(9) The applicant shall be allotted a new memberships number by recording the membership

number of the original member and the same shall be recorded in the Membership Register.

(10) The share money of the original member or the transferor as the case may be who has sold

the flat or plot shall be forfeited and transferred to the common Good Fund of the society.

104. Special Provision for regularization of occupancy right of persons who have

acquired such a right through the instrument of registered power of attorney or

registered agreement for sale or registered sale deed:-

(1)

Subject to the provision of section 91 of the Act the purchaser having registered power of

attorney or registered agreement for sale or registered sale deed as the case may be, in

respect of said plot or flat where draw of lots have been conducted by DDA may apply

for membership alongwith the following documents as mentioned in Rule 92 and the

committee shall dispose of the application as per the procedure laid down in the said rule.

 

90.

Every co-operative housing society shall maintain register of its properties in such form as may be prescribed.

Special provision for regularisation of occupancy right of persons who have acquired such a right through the instrument of power of attorney or agreement for sale.

91.

Any person who has acquired property on occupancy right in a co-operative housing society through the instrument of power of attorney or agreement for sale shall have the opportunity to become member of the concerned co-operative housing society where the property exists by getting the property converted from leasehold to freehold and on paying the transfer fee to the concerned co-operative housing society along with dues, including the dues of the apex or financial institution, if any :

Provided

that a power of attorney holder or purchaser of property through agreement of sale and purchase in a co-operative housing society shall get the said property converted from lease hold to free hold within a period of three hundred and sixty days at the commencement of this Act and all subsequent sales and purchases of such property after the commencement of this Act, the

 

 

 

 

 

THE DELHI CO-OPERATIVE SOCIETIES RULES, 2007

FORM - 20

(See sub-rule (2) of rule 92)

Application of Membership

(For Purchaser having Registered Power of Attorney or Registered Agreement or Registered

Sale deed of a Plot/ Flat in Housing Co-operative Society)

To

The Hony. Secretary,

__________________

__________________

Sub:-

Sir,

1. That I am submitting my application for membership with the following details and

information in pursuance of provision of Section 91 of D.C.S. Act 2003 as amended and

enforced w.e.f. 13.1.2007.

2. That I have purchased Plot/Flat No. ___________ in the Cooperative Group Housing

Society popularly known as ______________from Shri/Smt./Ms. __________________

S/o/W/o/D/o _________________through instrument of Power of Attorney &

Agreement for Sale. Certified copies of Power of Attorney/Agreement to Sale or Sale

Deed are enclosed.

3. That the original Demand Draft/Pay Order payable in Delhi in favour of

_______________Cooperative Housing Society vide No. ________________ dated

_______________drawn on _______________Bank of

Rs._____________(Rupees______________) as transfer fee and Share money and

Admission Fee is enclosed.

4. That I confirm that I have read the Byelaws of the Cooperative Housing Society and

shall abide by them in the affairs/matters of the _________ Cooperative Housing Society

relating to me vice versa. Further I confirm that I am eligible to be member of the

cooperative housing society.

5. That my personal details are as under:-

a. Name

b. Father’s/Husband Name

c. Date of Birth

d. Permanent Address

e. Telephone No.

f. PAN No.

6. I hereby also undertake to share liability, if any of the original member in respect of dues

towards the society.

Now I request that I may be enrolled as a regular member of the cooperative housing

society with all privileges, rights, liabilities, etc. Assuring you my full cooperation all the

time.

Yours faithfully

(Name & Signature of Applicant)

Encl. As per list.

--
REJIMON C K.
Each year 50million trees and 75 billion water is used to create 7  million tonnes of mail, over 40% of which is thrown away unopened. source : National Geographic so the next time you receive paper, think again  before you print. choose to receive emails instead .

[N. Ramakrishnan]

Dear Sir,   What is stated in the law cannot be changed or altered.   Sale / purchase has nothing to do with becoming a member of the society.   Secondly, the DCS Act and Rules says, if a new purchase apply for membership, he will have to pay for the share money and Rs. 500 towards common good fund. And it also state, the outgoing member's share money will be transferred to common good fund (it is not refunded to the old member). The new member, after due process, will get admitted as a member and will be given a new share certificate with a fresh membership number.   I am bit confused about your query about connecting the value of the property with share money.   Every time a sale happens and if such buyer want to apply for membership, he need to pay share money and money towards common good fund.   Regards, Rama --- On Mon, 3/21/11, yogesh abbi <goto...@yahoo.com> wrote:

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[yogesh abbi]

Dear Rama,

I have got your point but the fact remains ,share money is paid only once and all that you have to pay is the transfer money susequently which has been clarified to me by the RCS also.They very clearly told me that their is a ruling of the high court on the subject (Have asked for a copy of it too) that no other fees is applicable except the transfer fee.Initially the societies used to ask for entry fees for which they never gave any reciept.That is NO longer applicable.But some societies still insist on entry fees to transfer share certificates which is absolutely a corrupt practice.The entry fees taken without giving a reciept for it goes everywhere other than the "common good fund"which in my books is a corrupt practice withou any doubts.

About the value of the shares as per the value of the property .....I stand corrected and that has no relevance to it.

Thanx n Regards,

Col (Retd) Yogesh

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From: N. Ramakrishnan <ramk...@yahoo.com>
To: dwarka-r...@googlegroups.com; REJIMON C K(President DF) <reji...@gmail.com>
Sent: Sat, 26 March, 2011 9:18:42 PM
Subject: Re: [DWARKA FORUM] Share certificate Money/Entry Fees

[Sudhir Jathanna]

I do not think the Act/Rules are very clear about the fresh membership number. In our society the new flat owner takes over the old member’s membership number. I could not find anything indicating that this practice is incorrect (obviously, our Managing committee believed that retaining the old membership number is correct. New membership numbers were allotted to new members who replaced outgoing members only till the flats were allotted. Once the flats were allotted, the same membership number is being passed on to new flat owners.

 

SJ

 

---

From: dwarka-r...@googlegroups.com [mailto:dwarka-r...@googlegroups.com] On Behalf Of N. Ramakrishnan

Sent: 27 March 2011 09:49
To: dwarka-r...@googlegroups.com; REJIMON C K(President DF)