What is the max amount of transfer fees that can be charged on a plot

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Various Co-operative societies in the country charge an Ownership Transfer Fee every time someone sells his apartment. These charges may vary from Rupees Ten Thousand to few lacks in some case and they are generally referred as gate money / entry fee / development fund / transfer fee / common good fund. Till date, these charges are arbitrarily decided by the societies and are mostly included in their bylaws. Anyone who refuses to pay is threatened with disconnection of basic services like electricity and water connection. Time and again the authorities have tried to emphasize that Transfer Charges should be capped under 10000/- only. In 2014, the Punjab and Haryana High Court passed a judgment based on the Delhi High Court’s 2009 order to stop this practice immediately and all the Cooperative house building, group housing and maintenance societies etc. shall not charge more than 10000/- as the transfer fee.

Basically, this order is only related to Co-operative Societies registered under Delhi Cooperative Societies Act, 1972 and Delhi Cooperative Societies Rules, 1973 / any other state co-operative act Or Group Housing complexes that are being managed by societies registered Society Registration Act.

Advocate Siddhant Sharma LawRato