Disputes in a cooperative housing society (CHS/the Society) often arise not because the law is unclear, but because procedures are misunderstood or ignored. Whether it is an unjustified demand during a property transfer, differing views on how maintenance charges should be shared, or a neighbour's refusal to address persistent water leakage, members and managing committees alike must recognise that society bye-laws exist to ensure fairness, transparency and orderly administration. This week's queries examine how the law balances the rights and responsibilities of all concerned.
 
Gift deed transfer and society's demand for legal charges
 
Question: My parents were joint owners of the flat in which I reside. They have each gifted their respective 50% share in the property to me through duly registered gift deeds. I have submitted notarised copies of the gift deeds, the prescribed transfer forms under the Maharashtra model bye-laws and proof that all dues of the Society have been paid.
 
The Society secretary has asked me to pay ₹25,000 as legal charges for verifying these documents. Since the gift deeds are already registered with the sub-registrar and the remaining documents are the prescribed society forms, I do not understand why such a large amount is being demanded. Bye-law 38(e)(ix) states that no additional amount should be recovered from the transferor or transferee under any pretext. Is the Society entitled to levy these legal charges?
 
Further, I had submitted the documents relating to my mother's gifted share in January 2024 and the Society acknowledged receipt but never communicated any decision, despite my repeated requests. Does the Society's failure to respond within the prescribed period mean that I am deemed to have been admitted as a member under the Maharashtra Co-operative Societies Act and the model bye-laws?
 
Answer:  A CHS cannot ordinarily demand ₹25,000 as legal charges for processing a transfer based on a registered gift deed. Under bye-law 38(e)(ix) of the Maharashtra Model Bye-laws, the Society may recover only the prescribed transfer fee and, where applicable, the permissible transfer premium. No additional amount can be recovered under any other pretext. Moreover, where the transfer is by way of gift to a family member, the transfer premium itself is not applicable.
 
If the Society insists on recovering ₹25,000 without any legal basis, you should ask for the demand in writing, together with the resolution or bye-law under which it is being levied. If the Society is unable to justify the demand, you may file a complaint with the deputy registrar (DR) of cooperative societies seeking appropriate directions.
 
Regarding your second query, the relevant provision is not bye-law 38(c) but bye-law 39(c), read with Section 22(2) of the Maharashtra Co-operative Societies Act. If a complete application for transfer and membership is not decided and the decision is not communicated within three months of its receipt, the transfer application is deemed to have been accepted and the transferee is deemed admitted as a member, provided all statutory requirements have been complied with. Since your application was acknowledged but no decision was communicated for a prolonged period, you may rely on these provisions while approaching the deputy registrar for appropriate relief and implementation.
 
Can a Society Levy Maintenance Charges Entirely on Carpet Area?
 
Question: Our cooperative housing society, formed in 2019, comprises 104 flats—21 one-bedroom flats, 35 two-bedroom flats and 48 three-bedroom flats. At present, as per the adopted model bye-laws, the maintenance charges are divided equally among all flats. We now wish to levy the common maintenance charges on a per-square-foot basis, as the current system is burdensome for owners of one-bedroom flats with a carpet area of 350sqft, compared with two-bedroom flats at 740sqft and three-bedroom flats at 1,300sqft.
 
Can the Society amend its bye-laws at a special general body meeting to recover common maintenance charges on a per-square-foot basis? Would such an amendment be legally valid?
 
Answer: Under bye-law no. 67(a), the following items are recoverable on the basis of the area of the flat:
 
(i) Property tax levied by the local authority.
(ii) Repairs and Maintenance Fund.
(iii) Sinking Fund.
(iv) Lease rent, where the land is held on lease.
(v) Non-agricultural assessment.
 
Except for the above items, all other charges specified under Bye-law No. 67(a), such as common service charges, are to be shared equally by all flats, irrespective of their area.
 
Therefore, the Society cannot simply pass a resolution at an extraordinary general meeting to recover all maintenance charges on a per-square-foot basis. Any amendment to the bye-laws must be approved by the registrar of cooperative societies and cannot be contrary to the provisions of the Maharashtra Co-operative Societies Act, the rules or the approved model bye-laws.
 
Legal Remedies for Persistent Leakage from the Flat above
 
Question: I own a flat on the third floor and my property has been damaged because the owner of the flat directly above mine has failed to repair leakage from his bathrooms. Water seepage has damaged my walls, windows and electrical switchboards, causing me considerable mental distress and financial loss. I have had to repaint my flat twice in the past 12 months. My last tenant vacated because of the problem and I was unable to let out the flat for six months thereafter.
 
Since October 2021, I have repeatedly requested the owner to carry out the repairs, but he has either ignored my calls or falsely claimed that the plumbing work has been completed. I have even arranged for plumbers to inspect the problem and provide estimates, but he is still unwilling to undertake the repairs. I currently live outside India. Although I have raised the issue on the Society's WhatsApp group, no one has taken any interest as the leakage affects only my flat. What legal action can I take?
 
Answer: First, submit a written complaint to your Society, requesting that it inspect the leakage and direct the owner of the flat above to carry out the necessary repairs. Keep copies of all your correspondence and photographs of the damage.
 
If the Society or the flat-owner still fails to act, then, with copies of your earlier written complaints to both the flat-owner and the Society, make a complaint to the assistant municipal commissioner (ward officer) of your municipal ward office.
 
If the assistant municipal commissioner has not taken any action within a reasonable time, you may file an RTI application with the public information officer (PIO) of the ward office seeking information on the action taken on your complaint. The PIO is required to reply within the prescribed 30-day period under the RTI Act. If no reply is received, you may file a first appeal before the designated Appellate Authority.
 
Simultaneously, you may submit a Lokshahi Din complaint to the municipal commissioner, enclosing copies of your complaint to the ward office and making both the flat-owner and the society parties to your complaint.
 
If the leakage continues despite these steps, you may also approach the appropriate civil court for directions to the flat owner to carry out the repairs and to claim compensation for the damage and financial loss suffered by you.
 
  NOTE
  We will not be answering queries posted in the comments. Only questions sent through the Moneylife Foundation's Legal Helpline will be answered. If you want to seek guidance or ask questions to Mr Shanbhag, kindly send it through Moneylife Foundation's Free Legal Helpline. Here is the link: https://www.moneylife.in/lrc.html#ask-question
 
Disclaimer: The guidance provided in these columns and on our Legal Helpline is on the sole basis of the facts provided by the reader/questioner and does not amount to formal legal advice in any form whatsoever. 
 
(Shirish Shanbhag has an MSc in Organic Chemistry, Diploma in Higher Education, and a Diploma in French and has completed his LL.B. in first class in 2021. Before his retirement, he was a junior college teacher at Patkar College from July 1980 to May 2012, teaching theoretical and practical chemistry. Post-retirement in 2012, he started providing guidance and counselling to people on several issues, specifically focusing on cooperative housing society-related matters. He has over 30 years of hands-on experience in all matters about housing societies and can provide out-of-box solutions for any practical issue.)