The deputy district registrar RS Dhondkar dissolved the entire council of board of directors of a cooperative housing society in Katraj on Monday.

The council of board of directors was dissolved for passing a general body resolution charging Rs 1.25 lakh as society charge to issue a no objection certificate (NOC) for transfer of flat in the buyers’ name.
According to the Cooperative Societies Act, the prescribed amount of flat transfer is Rs 25,000 according to government norms and the board of directors violated the Act, hence, keeping in mind the Act, the deputy district registrar passed the order.
The deputy registrar has also barred the society directors from contesting elections for the next six years.
Umesh Patil, a resident of the cooperative housing society in Katraj, had lodged a complaint against the society board of directors, claiming that the general body resolution charged exorbitant flat transfer fee which was illegal.
Patil also stated in his complaint that the general body resolution violated the Cooperative Societies Act.
Deputy district registrar Dhondkar heard arguments of both the sides and then, passed the order to dissolve the council of the board of directors of the cooperative housing society.
As per bye-Law no. 40(d)(vii), the society should collect transfer charges 2.5 per cent of the difference between the book value of the flat and the price realised by the transferor on transfer of the flat or maximum of Rs 25,000, whichever is less.
{{/usCountry}}As per bye-Law no. 40(d)(vii), the society should collect transfer charges 2.5 per cent of the difference between the book value of the flat and the price realised by the transferor on transfer of the flat or maximum of Rs 25,000, whichever is less.
{{/usCountry}}As per Section 79 of the said Act, as well as the department-issued housing manuals, the premium amount of transfer charges should not exceed Rs 25,000.
The rules also dictate that while the maximum amount is this sum (Rs 25,000), it can also be reduced if the general body of the society decides to do so.
According to activists working for members of the cooperative housing societies, the society managing committees have been found imposing unilateral transfer fees from new buyers and illegally levying extra transfer charges and transfer premiums from flat owners.
The state commissioner for cooperation and registrar of cooperative societies has in the recent past cracked down on the said inconsistencies and had issued a stringent order to all deputy district registrars (DDR) of cooperative societies to initiate legal action against offending office-bearers, if found guilty of such actions.
The order, issued on August 10, 2019, has further stated that any managing committee discovered perpetrating such acts will be disqualified from contesting intra-society elections for the next six years.
Former chief commissioner of income tax, Akramul Jabbar Khan, who is a citizens’ right activist, said, “The regulations are violated by the societies who have been found to flout existing directions and circulars issued by the government for cooperative housing societies and charge more than the premium amount. Sometimes, the general bodies pass illegal resolutions to charge the extra money in violation of the Cooperative Societies Act ,” he said.