Money charged on the name of Development Fund / Transfer Fees is Illegal as per order enclosed

[RWAEVERGREENAPTS Dwarka]

Hello Members,

 

Subject :- (Money charged on the name of Development Fund / Transfer Fees is Illegal as per order enclosed)

 

Thought to share important Order/Judgment wherein collection of huge amounts by the MCs (whatever heads they may call it like gate money / entry fee / development fund / transfer fee / common good fund.etc etc) from the bona fide purchasers are illegal.  NO ONE have rights to charge any amount on account of Entry Fees in any form whatsoever. Violation of this directive will be viewed seriously and the President/Secretary of the concerned society would be held responsible jointly and individually. Also Action will be taken against the society / Individually under the provisions of the Act and Rules for any such violation.

 

In the case of payment made, individual still can be beneficial by approach to RCS with all relevant documents / Proofs for refund.

 

Pls refer the attached Order/Judgment for more details and below is quick snapshot of key points taken from attached important Orders / Judgments for your kind reference.

 

Key Points from High Court Judgment on Suman Lata Case.

 

1.    Societies could not charge any money on account of gate money / entry fee / development fund / transfer fee /common good fund from the bona fide purchasers who have purchased the flat from Original owners.

 

2.    Societies which are stopping purchaser to let them in and denied the membership before paid the Money on account of Entry fees , can be challenged in these writ petition on the ground that they are violative of the directives issued by the RegistrarIt’s Co-operative Societies on 14.12.1999 and 10.10.2001, apart from being otherwise illegal and without authority of law.

 

Key Points from High Court Judgment on Subhash Sharma case

 

1.    In reference to Suman Lata Judgement it has been contended that the petitioner is entitled to refund of the amount paid which has been appropriated by the Society towards development charges.

 

2.      Court have given the timelines to Society of three weeks to refund the money to Subhash Sharma on his raised case.

 

Key Point from Registrar Order.

 

1.    Societies have NO rights to Charge “Entry Fee” from the persons in taking the possession of flat/plot in the respective Cooperative Society. Violation of this Directive will be viewed seriously and the President/Secretary of the concerned Society would be held responsible jointly and individually. Action will be taken against the Society under the provisions of the Act and Rules for any such violation.

 

2.    Purchaser have to pay nominal fees for membership of five hundred rupees as per the provisions of the bye-laws of the society and the committee shall grant membership to the applicant within thirty days after the submission of his application. In case of refusal by the committee, the applicant may appeal to the Registrar within thirty days.

 

3.      Society have NO rights to refuse and stopping giving the membership on the basis that purchaser didn't paid the money on the account of entry fee / Development Charges etc..

 

Kind Regards,