The Bombay High Court has delivered a landmark ruling that will bring relief to thousands of homebuyers and housing society members across Maharashtra. The court has made it clear: societies cannot levy welfare fees or any other hidden charges while transferring membership, beyond the legally permitted â‚ą25,000 transfer fee.
🔎 What the Case Was About
In a recent dispute, members who had applied for transfer of membership were asked to pay a so-called “welfare fee” in addition to the statutory transfer charges. When they refused, the society delayed their membership approval. The matter eventually reached the District Deputy Registrar, and later the High Court.
Justice N.J. Jamadar, while hearing the case, observed that the so-called welfare fee was nothing but a camouflage to extract more money than allowed by law.
🏛 Key Highlights of the High Court Ruling
- Transfer Fee Limit – Societies can only charge up to ₹25,000, as per the Maharashtra Co-operative Societies Act.
- Welfare Fee Invalid – Any extra demand under names like welfare, donation, or development has no legal standing.
- Registrar’s Orders Upheld – Authorities rightly directed the society to admit the members; the HC supported this.
- Three-Month Rule – Societies must process membership applications within 3 months, else it’s deemed approved.
- Court’s Observation – The “welfare fee” was just a cover-up for unlawful charges.
- No Further Appeal – The HC found no merit in the society’s challenge and refused interference.
- Applies Across Maharashtra – This ruling is binding and sets a precedent for all cooperative housing societies in the state.
🧾 What This Means for Societies
- You can only collect charges that are permitted by law.
- Even a resolution passed in a General Body Meeting cannot authorize extra fees.
- Ignoring this ruling may invite legal action, registrar intervention, and loss of credibility.
🧾 What This Means for Members
- You cannot be forced to pay beyond the transfer fee.
- Always demand an official receipt and maintain payment proofs.
- If a society insists on illegal fees, you can approach the Registrar of Co-operative Societies for redressal.
💡 Consultant’s Advice
As society consultants, our advice is simple:
- For Societies: Maintain transparency and comply strictly with the law.
- For Members: Know your rights and don’t fall prey to unauthorized demands.
This judgment is a reminder that cooperative housing must run on fairness, legality, and accountability—not on arbitrary decisions.
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