We have published below three articles on transfer fee earlier where we have shared details about transfer fee amount and process to be followed by Society

Further to Gujarat Cooperative Society (Amendment) Act 2024, Draft Rules Gujarat Co-operative Societies (Amendment) Rules, 2025 was published on 25-Feb-2025 inviting objections and suggestions from all persons likely to be affected thereby within thirty days from the date of publication.

After considering objections and suggestions received in respect of the said draft notification, Government has now publishes Gujarat Co-operative Societies (Amendment) Rules, 2025 which has come into force from 10-Jun-2025 (date of publication in the Official Gazette)

Revised Rules

Revised Rules cover broadly

  1. 31A. Contribution to Members Welfare Fund
  2. 37B. Remuneration payable to an Administrator
  3. 48A. Preferential Payment by the Liquidator
  4. 140A. Transfer fee in case of Housing or Housing Service Co-operative Society

This article will be about 140A. Transfer fee in case of Housing or Housing Service Co-operative Society

Revised Rules for Transfer Fee

  1. The Housing or Housing Service Co-operative Society, subject to the provisions of the bye laws shall not collect transfer fee more than the rate exceeding 0.5 percent of consideration value of the transferred property or one lakh rupees whichever is less
  2. No transfer fee shall be collected in case of transfer to the legal heirs without any consideration value of the transferred property.
  3. No additional amount towards development charges, donation or contribution to any other funds or under any other pretext shall be recovered from the transferor or transferee at the time of transfer

Impact on Societies, Member, Buyers and Legal Heirs

  • Above rules will be applicable to “flat” means block, chamber, dwelling unit, apartment, office, showroom, shop, godown, premises, suit, tenement, unit or by any other name
  • It is applicable from 10-Jun-2025
  • Impact on Housing Society:
    • Existing Limit increased from Rs 50,000 to Rs 1,00,000
    • Simpler Calculation against existing Rs 500 – Rs 50000 based on difference of sale deed value. Refer: Transfer Fee by Cooperative Housing Society
    • No additional amount can be collected under any name
  • Impact on Service Society: Earlier Services Societies were not allowed to collect transfer fee based on Registrar Circular dt 28-Apr-2016 on Transfer Fee. Based on revised rules, Services Society will now able to be collect transfer fee like Housing Societies.
  • Impact on Property Buyers: Increase in cost of purchase
  • Impact on Seller: Some Societies earlier were collecting transfer fees from sellers to bypass Registrar notification. This loophole has been closed as this rules covers both transferor or transferee (buyers and seller)
  • Impact on Legal Heirs: Society will not be able to charge transfer fee in case of transfer of property to legal heirs without any consideration.

Gaps in Rules

Below are some of the gaps which can be covered in future amendment and societies in mean time can include the same in their amendments / approval from members to avoid disputes.

  • Transfer fee in case of divorce case, where transfer is without consideration
  • Transfer of property by Gift Deeds between family members without consideration
  • Sale deed executed before 10-Jun-2025 but transfer pending
  • Sale of Bank / NBFC reppossed flats.
  • First sale deed pending and site is handed over to members

Definition added for Cooperative Housing Society, Services Society and Flat

2.7B “co-operative housing society” means —

  • a society, the object of which is to provide its members with open plots for housing, dwelling houses or flats and to provide its members common amenities and services;
  • a society, the object of which is to allot the plots to its members to construct the dwelling unit or flats thereon or to allot the dwelling units already constructed and where land is held either on lease hold or free hold basis by the society and houses are owned or to be owned by the members;
  • a society, the object of which is to allot the flats already constructed or to be constructed to its members and where both land and building or buildings are held either on freehold or lease-hold basis by the society;
  • “co-operative housing service society” means a society formed by the owners of flats in a building for the purpose of maintenance of the building and provision of common amenities and services;

Sec 2.10A: Flat

“flat” means block, chamber, dwelling unit, apartment, office, showroom, shop, godown, premises, suit, tenement, unit or by any other name, means a separate and self-contained part of any immovable property, including one or more rooms or enclosed spaces, located on one or more floors or any part thereof, in building or on a plot of land, used or intended to be used for any residential or commercial use such as residence, office, shop, showroom or godown or for carrying on any business, occupation, profession or trade, or for any other type of use ancillary to the purpose specified;”

Reference

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Published by Sanjay Mandavia

Buyers Credit & Suppliers Credit Consultant // Cooperative Society Compliance, Taxation and Accounting

5 thoughts on “Revised Rules for Transfer Fee in Societies”

  1. As there is no clarification for transfer fee on Gift deed can society collect transfer fee as per new rules?

    Reply

    1. The rules state that the revised transfer fee is 0.50% of the consideration value or Rs 1 lac, whichever is less. In most cases of a Gift Deed there is no consideration value or only a token amount. Since there is no consideration value, the transfer fee will not be applicable.

      Reply

  3. Whether new rules for transfer fee in housing society is applicable to NTC as same act is abolished since 2005

    Also please.advice for society containing various NTC can be merged for smooth Administration?

    Reply

    1. 1. These rules are for Cooperative Societies

      2. One must examine the physical infrastructure, land ownership and willingness of all NTC members before making any decision. Also a new entity needs to be created where all NTC flats / shop owner become members.

      Reply

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