Transfer fees charged by housing societies in Kanpur are a matter of frequent and legitimate grievance among flat owners and buyers, and the legal position is clear: a housing society cannot charge a transfer fee that exceeds what is authorised by its registered bye-laws and the applicable statute. An excessive or arbitrary transfer fee is legally challengeable.

For co-operative housing societies registered under the Uttar Pradesh Co-operative Societies Act 1965, the transfer fee must be set out in the registered bye-laws and must be reasonable and proportionate. Any transfer fee charged beyond what the bye-laws authorise — or any transfer fee charged in a society whose bye-laws do not provide for one — is without legal basis and can be challenged before the UP Co-operative Court. The Supreme Court and various High Courts, including the Allahabad High Court, have consistently held that societies cannot levy charges on members that have no basis in the registered bye-laws, and have struck down excessive charges as ultra vires. A society that withholds NOC or refuses to transfer the share certificate pending payment of an excessive fee is also acting improperly — the NOC refusal becomes challengeable on the same grounds.

The practical first step is straightforward: obtain a copy of your society's registered bye-laws (available from the Registrar of Co-operative Societies in Kanpur) and check whether the fee being charged matches what the bye-laws prescribe. If it does not — or if the bye-laws are silent on the point — write a formal objection to the managing committee, citing the specific bye-law provision and demanding the legally authorised fee. If the society persists, a complaint before the Registrar of Co-operative Societies or an application before the Co-operative Court is the next step. These proceedings are relatively fast and inexpensive compared to ordinary civil litigation. The housing and property lawyers at the Kanpur panel of Aapka Legal Advice can review your bye-laws, assess the legality of the fee, and file the appropriate complaint if needed.