Legal position: Housing Cooperatives forcing donations

Dr Viraj Pradhan

Can one get H.C. judgments on issues related to Cooperative Housing Society’s attempts at seeking donations in sale of a flat? You must be aware of societies stalling a sale unless donation to society is made.

Since there is no documentary or legal clarity, one is helpless and succumbs to the pressure. What is the maximum amount that could be donated irrespective of the transfer fees?

I C Naik

I guess this is a case of Maharashtra Cooperative Society Act. This matter does not seem to have been agitated before HC.

Shri Ramanna Co-operative Housing Society Limited vs. D. Chittar,Bombay, 1989 C.T.J. 319. The Co-operative Court has held that the co-operative society can place reasonable restrictions on transfer of a member’s interest to prevent nuisance from unwanted element but that does not mean that the society can have such a right of profiteering out of the co-operative movement.

In the case of The Poona Hindu Middle Class Co-operative Housing Society Limited v. Shri Sudhakar Gopal Palsule,1991 C.T.J. 326, the Maharashtra State Co-operative Appellate Court, held that the practice of demanding donation or transfer fees deserves not only to be discouraged but also to be condemned.

The Act is silent on such issues. Donations under Model bye Laws 2001 have been expressly prohibited. Societies having bye laws as per earlier Model Bye Laws can accept donation given voluntarily.

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