21 February 2024BlockBalance

For Revised Guidelines Refer Article: Revised Rules for Transfer Fee

Ownership of property changes because of many reasons. Once property is acquired by New owner, it requires him to follow certain process through which he becomes a member of the Housing / Commercial Service Society. In this article, we have discussed about reasons of transfer, what does Byelaws, The Gujarat Cooperative Societies Act and Rules talk about transfer, which documents the New owner needs to submit to the society for transfer (with formats), what process the Service Society needs to follow along with Resolution format and Transfer Fee related Registrar Circular.

Byelaws Clause 4 – Membership

Any person:-

Any person who is owner of property in the Society as per Byelaws clause 1(2) will only be able to hold shares and can become member of the society;
Who is having ownership right in the flat in our scheme known as _______ situated block No: _____/paiki & ______ to _____ paiki land admeasuring __________ sq.mtrs.;
Who has paid an admission fees of ₹ 5/- ;
Who has paid value of minimum 5 shares of the society;
Who has provided the details required as per byelaws and, who has given an undertaking to act as per the rules framed under the byelaws of the society and rules framed under The Gujarat Cooperative Societies Act;
Whose application, filed as per the prescribed Form A prepared by the Society, has been approved by the Managing Committee;
Any person, firm, company, trust can become member if eligible as mentioned hereinabove and any of the representative of such firm, company, trust can become member of the society and has rights and duties of the member.

The Gujarat Cooperative Societies Act, 1961

Section 22: Person who may become member

22.2 Every person seeking admission as a member of a society, if duly qualified for membership of such society under the provisions of this Act, the rules and the bye-laws of the society, may make an application to the society for membership. The society shall take decision on the application and shall communicate the decision within a period of three months from the date of the receipt of the application.

22.2A Any person aggrieved by the decision of a society under Sub-Section (2), may prefer an appeal to the Registrar within 60 days of the date of communication of the decision and such appeal shall be decided by the Registrar within a period of 60 days.

Section 30: Restriction on Transfer of Share or Interest

30.2A member shall not transfer any share held by him, or his interest in the capital or property of any society, or any part thereof, unless,-

he has held such share or interest for not less than one year;
the transfer or charge is made to the society, or to a members of the society, or to a person whose application for membership has been accepted by the society ; and
the committee has approved such transfer.

The Gujarat Cooperative Societies Rules, 1965

12. Open Membership

12.2 No Cooperative Housing Society shall without sufficient cause, refuse admission to its membership to any person, duly qualified therefor under the provisions of the Act, and its bye-laws to whom an existing member of such society want to sell or transfer his plot of land or house and no such society shall without sufficient cause, refuse to give permission to any existing member thereof to sell or transfer his plot of land or house to another person who is duly qualified as aforesaid to become its member.

18. Procedue for Transfer of Share

No Transfer of share shall be effective unless
- It is made in accordance with the provisions of the bye-laws;
- a clear fifteen days’ notice in writing is given to the society indicating therein the name of the proposed transferee, his consent, his application for membership, where necessary, and the value proposed to be paid by the transferee;
- all liabilities of the transferor to the society are discharged; and
- the transfer is registered in the books fo the society.
Any charge in favour of the society on the share so transferred will continue unless discharged otherwise

Reasons for Transfer

Sale of Property
Transfer because of death of owner (inheritance)
Change in Ownership because of Gift Deed (Example: transfer of property by parents to children, divorce case etc)

Document Formats from Members

Member Request Letter for Transfer
Application Form–A for becoming a member
Nomination Form
Sellers Request Format (Old Owner)
₹ 255 (Cash / Chq or NEFT) towards share purchase (₹ 50 * 5 Shares) + ₹ 5 Entry Fee
Clear outsanding of the old owner, if any

Process to be followed by the Society

Raised query if any in application after checking within 15 days of receipt of application.
In case of query, give proper notice to member along with 15 Days time for rectification
Once receipt of complete documentation, take the transfer request within 30 days in Committee meeting (within 90 days of application date) and record it in minutes of the meeting. (After all documents are received and funds cleared) Draft Resolution Format
Share attested copy of the resolution with new owner / Member
Updation of record in Transfer Register, Member Register, Share Register, Personal Share Account Register and Nomination Register.
Prepare a seperate file for all the transfer documents received from the member.
Create or Remove lien on Share Certificate.
Update Lien Register.
Handover the original Share Certificate after making entry on the backside of the certificate under appropriate columns and duly signed by the Chairman and Secretary of the society.
Update the Accounting Data
- Create new owners ledger.
- Transfer the debit /credit balance to the new ledger from the old owners ledger.
Issue receipts for the payments received.
Issue NOC for name change in Gram Panchayat / Municipal Corporation.
Issue Sticker / RFID Sticker for Vehicles.
Provide Byelaws / Peta niyam copy to the new member.
Provide Society Rules copy (if any like – Renovation rules, occupancy rules, pet rules etc.)
Add the new member in WhatsApp groups, ERP, Security App, Automated Gate App, Parking App or any other such App used by the society. Also remove old owners details from all these Apps.
Introduce New member to Committee members, Block Representative and share contact details.
Show Flat Parking, Common Parking and Visitors Parking, if any.
Share Electrical and Plumbing drawings of Flat / Shop layout.

Complain Against Society under Sec 24 (Not making Member)

If Socety does not approve membership with in 90 days or rejects application, new owner can file a case with Register under Section 24 of Gujarat Cooperative Society Act.

Documents along wtih complain

Copy of application form filed with society
If society has reverted back, copy of the letter
Documents proving elegibility of becoming member as per Byelaws Clause 4 referred above (Index copy, Sale deed etc)
Receipt copy of Share and Entry Fee Payment (Rs 255)

List in Gujarati

Transfer Fee

As per Registrar Circular dt 28-Apr-2016, Service Society cannot collect transfer fee, Development fee or any other fee under any other name.

If still society insists on collecting Transfer fee (under any name), a case can be filed with Registrar or Board of Nominee under Section 96 of The Gujarat Cooperative Societies Act, 1961.

Transfer Process in Service Society