Co-operative Housing Society Law

Society Transfer Fees in Maharashtra: Bombay High Court Rules Housing Societies Cannot Charge More Than ₹25,000

By Midhati Lawyers & Associates  |  Co-operative Housing Society Law  |  Updated: August 2025  |  Reading time: ~6 minutes

If you have ever purchased a flat or commercial shop in a co-operative housing society in Maharashtra, you have almost certainly encountered the phrase “transfer fees.” You may also have encountered something else — a demand from the society for additional charges under names like welfare fee, donation to corpus fund, club membership fee, or similar labels, over and above the standard transfer charges.

Many buyers pay these without question, unsure of their rights. But the law is clear — and the Bombay High Court has now made it even clearer.

In a judgment dated 14th August, 2025, the Hon’ble High Court of Bombay firmly held that a co-operative housing society cannot charge any amount beyond ₹25,000 as transfer fees — regardless of any resolution passed in a General Body Meeting. Any additional levy is illegal and amounts to a camouflage to recover more than what the Government Directive permits. If your society is making such a demand, contact our legal team at Midhati for a free consultation.

Maharashtra Co-operative Society Transfer Fees: What the Law and Government Resolution Say

The transfer of membership in a co-operative housing society is governed by Sections 22 and 23 of the Maharashtra Co-operative Societies Act, 1960. When a member sells or transfers their flat, the incoming buyer must be admitted as a member of the society. The society has a statutory obligation to communicate its decision within a stipulated time. The Department of Co-Operation, Marketing and Textiles, Government of Maharashtra is the nodal authority responsible for administering and regulating co-operative housing societies across the state.

Alongside this statutory framework, the Government of Maharashtra, Co-operation and Textiles Department, issued a Government Resolution (GR) on 9th August, 2001 — bearing reference No. सगृवो-२००१/प्र.क्र. १८८/१४-स — fixing the maximum premium (transfer fees) chargeable by a co-operative housing society at the time of flat/shop transfer. This GR is issued under the authority of Section 79-A of the Maharashtra Co-operative Societies Act, 1960, which empowers the State Government to issue binding directives to co-operative societies in public interest.

Maharashtra Government Resolution dated 9 August 2001 fixing the maximum permissible society transfer fees.

Maharashtra GR 2001: Maximum Co-operative Society Transfer Fee Limit by Local Body Area

The GR issued by the Maharashtra Government categorically fixed the maximum permissible transfer fee (premium) for co-operative housing society flat/shop transfers. The amounts vary based on the type of local authority area in which the society is located:

The GR makes it equally clear that the premium fixed by the General Body of the society cannot, under any circumstance, exceed the maximum slab amount shown above. While the General Body may determine the exact amount to be charged, it must remain within the ceiling fixed by the State Government.

Bombay High Court 2025 Judgment on Co-operative Housing Society Transfer Fees: Tirthankar Darshan CHS vs. State of Maharashtra

The landmark ruling that crystallises this position is the Bombay High Court‘s judgment in Writ Petition No. 10953 of 2025 — M/s. Tirthankar Darshan Co-operative Housing Society Ltd. vs. State of Maharashtra & Ors., decided on 14th August, 2025, by the Hon’ble Justice N. J. Jamadar. You may download the full text of the judgment using the link provided below.

Facts of the Case: Illegal Society Transfer Fee Demand in Maharashtra

Respondent Nos. 4 and 5 (the buyers) purchased Shop No. 4 in the society premises under a registered instrument dated 24th July, 2019. They duly applied for membership and paid the prescribed transfer fee of ₹25,000 along with the application fee.

The petitioner-society refused to admit them as members. The ground for refusal: the buyers had not paid a welfare fee that had been resolved upon by the society in its General Body Meeting of 23rd July, 2017.

Deputy Registrar and Revisional Authority: Society Ordered to Admit Member After Lawful Transfer Fee Payment

The buyers appealed before the District Deputy Registrar under Section 22(2) of the MCS Act, 1960, asserting that the society had not communicated its decision within the stipulated time. By an order dated 17th November, 2023, the Deputy Registrar allowed the appeal and directed the society to admit the buyers as members, holding that they had complied with all requirements — including payment of the transfer fee.

The society filed a revision before the Divisional Joint Registrar under Section 154, which was also dismissed on 25th February, 2025, upholding the Deputy Registrar’s order.

Society’s Argument: Can a General Body Resolution Justify Charging Extra Transfer Fees?

The society argued before the High Court that its 2017 General Body Resolution legitimately empowered it to charge the welfare fee as a precondition for membership. This fee, it argued, was separate from the transfer fee and therefore permissible.

Bombay High Court’s Ruling: Welfare Fee for Housing Society Transfer Is Illegal Under Maharashtra Law

Justice Jamadar was unpersuaded. The Court held in unequivocal terms:

• Payment of the prescribed transfer fee of ₹25,000 along with the application fee fully satisfies the statutory and regulatory requirements for admission of membership.
• A society is “precluded” (legally barred) from charging any amount beyond the transfer fee of ₹25,000.
• A General Body Resolution to levy a “welfare fee” is nothing but a camouflage — a device to extract more money than what Government directives permit.
• The society’s refusal to admit the buyers was unsustainable, and the authorities were fully justified in directing compulsory admission of membership.

The writ petition was accordingly dismissed. The buyers stood admitted as members of the society.

📥 Download the Full Judgment (PDF):
⬇ Download: Tirthankar Darshan CHS vs. State of Maharashtra — Bombay HC, 2025

Your Rights as a Flat or Shop Buyer: Practical Impact of the Society Transfer Fee Ruling in Maharashtra

This ruling matters for anyone who has purchased or is about to purchase property in a co-operative housing society in Maharashtra. Here is what you need to know:

1. Co-operative Housing Society Cannot Charge Welfare Fee or Corpus Donation as Part of Transfer Fees

If your society is demanding a welfare fee, corpus fund contribution, club membership, or any amount beyond the applicable transfer fee slab, that demand is illegal and cannot be enforced. The name given to the charge is irrelevant — the law looks at the substance, not the label.

2. General Body Resolution Cannot Override Maharashtra Government’s Transfer Fee Ceiling

Many societies believe that a resolution passed by their General Body gives them authority to charge additional fees. This is legally incorrect. A society’s General Body can determine the fee amount, but it must stay within the ceiling fixed by the State Government. Any resolution that purports to levy charges beyond that ceiling is void and unenforceable.

3. Right to Co-operative Society Membership After Paying Prescribed Transfer Fee Under MCS Act 1960

Once you have submitted the membership application and paid the applicable transfer fee (₹25,000 for municipal corporation areas like Pune), the society is obligated to process your membership. Refusal on the ground of non-payment of welfare or any other extra fee is not a valid ground for refusal and can be challenged before the Deputy Registrar under Section 22 of the MCS Act, 1960. If you need help drafting and filing such an appeal, reach out to Midhati Lawyers & Associates.

4. How to Challenge Illegal Society Transfer Fee Demand: Appeal Before Deputy Registrar Under MCS Act

If a society refuses membership or fails to communicate its decision within the time stipulated under Section 22(2) of the MCS Act, the buyer can prefer an appeal before the District Deputy Registrar. The Tirthankar Darshan judgment confirms that the statutory authorities will direct admission where the buyer has complied with lawful requirements. For complaints and grievances related to co-operative societies, you may also approach the Office of the Registrar of Co-operative Societies, Maharashtra. Our team at Midhati Lawyers & Associates can guide and represent you through this process.

FAQs: Co-operative Housing Society Transfer Fees in Maharashtra — Know Your Legal Rights

Legal Help for Society Transfer Fee Disputes in Pune, Maharashtra — Midhati Lawyers & Associates

Disputes related to society membership, transfer fees, and illegal demands from co-operative housing societies are among the most common legal issues faced by property buyers and members in Pune and across Maharashtra. At Midhati Lawyers & Associates and the Midhati Legal Aid Foundation, we regularly assist clients in:

• Drafting and filing appeals before the Deputy Registrar under Sections 22 and 23 of the MCS Act, 1960
• Challenging illegal transfer fee demands made by societies
• Advising buyers and sellers on their rights and obligations in co-operative society property transactions
• Representing clients in revision applications before the Divisional Joint Registrar
• Filing writ petitions before the Bombay High Court in appropriate cases

Conclusion: Maharashtra Housing Society Transfer Fee Law Is Clear — ₹25,000 Is the Limit

The Bombay High Court‘s 2025 ruling in Tirthankar Darshan Co-operative Housing Society Ltd. vs. State of Maharashtra is a significant and welcome affirmation of the rights of property buyers vis-à-vis co-operative housing societies in Maharashtra.

The judgment makes it clear, once and for all, that no co-operative housing society in Maharashtra can demand any amount beyond the prescribed transfer fee limit. Welfare fees, corpus donations, and similar charges imposed as a precondition for membership transfer are legally impermissible and will not be upheld by the statutory authorities or the courts.

If you are a buyer navigating this issue, know your rights, pay only what is legally prescribed, and do not hesitate to seek legal recourse from Midhati Lawyers & Associates if the society acts unlawfully.

📥 Download the Bombay High Court Judgment for your reference:
⬇ Download Judgment PDF — WP No. 10953 of 2025