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My housing society is charging an excessive transfer fee in Patna. Is this legal?

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(@Kunal Bedi)
Joined: 1 month ago
[#1238]
I am transferring ownership of my flat, and my housing society in Patna is demanding a transfer fee that seems higher than permitted. What are the applicable rules?

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(@advocate-mudit-pratap)
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Joined: 2 months ago

An excessive or arbitrary transfer fee charged by a Patna housing society is not legal — and challenging it is both your right and a frequently successful exercise when the right forum is used. The legal position is straightforward: a managing committee can collect only such charges as are authorised by the registered bye-laws and the applicable statute; anything beyond that is without legal basis.

For co-operative housing societies registered under the Bihar Co-operative Societies Act 1935, the society's registered bye-laws must specify what transfer fee may be charged, and any fee that exceeds what the bye-laws prescribe — or any fee charged where the bye-laws are silent on the point — is unlawful and can be challenged before the Registrar of Co-operative Societies (Bihar) or the Co-operative Court under the Act's dispute resolution mechanism. The Supreme Court and the Patna High Court have both confirmed that co-operative societies cannot levy charges on members that find no basis in the registered bye-laws, and they have directed refunds of fees illegally collected. A society that withholds an NOC or a share certificate until an excessive fee is paid is compounding the wrong — the NOC refusal becomes separately challengeable on the same grounds.

For apartment associations registered under the Bihar Apartment Ownership Act 2006, the same principle applies: charges not authorised by the registered declaration and bye-laws are beyond the association's power. The practical first step is to obtain a copy of your society's registered bye-laws from the Registrar of Co-operative Societies in Patna and verify whether the fee being charged matches the prescribed amount. If it does not — write a formal objection to the managing committee citing the specific provision, and give a clear deadline. This documented objection often resolves the matter before formal proceedings become necessary; if it does not, the Co-operative Court application follows. The property and housing society lawyers at the Patna panel of Aapka Legal Advice can review your bye-laws and file the appropriate application.


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