Procedure for the Transfer of Shares and Interest in the property of the housing society

lawBy Accommodation Times News Services

1 (a) A member, desiring to transfer his shares and interest in the capital/property of the society, shall give 15 days notice of his intention to do so to the secretary of the society in the prescribed form, along with the consent of the proposed transferee in the prescribed form.

b On receipt of such notice, the secretary of the society shall place the same before the meeting of the committee, held next after the receipt of the notice, pointing out whether the member is prime-facie eligible to transfer his shares and interest in the capital/property of the society, in view of the provisions of section 29 (2) (1) of the Act.

C In the event of ineligibility of the member to transfer his shares and interest in the capital/property of the society, the committee shall direct the secretary of the society to inform the member accordingly within 3 days of the decision of the committee.
D If the committee is satisfied that the member is prima facie eligible to transfer his/her shares and interest in the capital/property of the society, the committee shall direct the secretary of the society to inform the member within 3 days of the decision of the committee to make the compliance as under :

i To submit an application for transfer of his/her shares and interest in the capital/property of the society, in and interest in the capital/property of the society, in the prescribed form, along with the share certificate.
ii To Submit an application for membership of the proposed transferee in the prescribed form.
iii To give valid reasons for the proposed transfer.
iv To discharge all the liabilities to the society.
v To pay the transfer fee of Rs.50/-
vi To remit entrance fee of Rs.10/- payable by the proposed transferee.
vii To pay amount of premium at a rate to be fixed by the general body meeting not exceeding 2.5 per cent of the difference between the book value of the Flat and the price realised by the Transferor, on transfer of his Flat, or Rs.25000/- (Rupees Twenty Five Thousand only) whichever is less. No additional amount by way of donation etc. will be taken unless it is paid voluntarily by the member.
viii To submit “No objection” certificate required under any law for the time being in force or order or sanction issued by the Government, any financing agency or any other authority.
ix To furnish the undertaking/declaration in compliance with the provisions of any law for the time being in force, in such form as is prescribed under these bye-laws.

NOTE : The condition at Sr. No. (vii) above shall not apply to transfer of shares and interest of the Transferor in the capital/property of the society to the member of his family or to his nominee or his heir/legal representative.

2 (a) The procedure for disposal of application for transfers of shares and or interest of members in the capital/property of the society as laid down under the bye-law No.67 shall be followed by the secretary and the committee of the society.
b The Managing Committee or the General body, as the case may be shall not refuse any application for admission to membership or transfer of shares and interest in the capital/property of the society except on the ground on non-compliance of the provision of Act, the Rules and the Bye-laws of the society or any other law or order issued by the Government in exercise of the statutory powers vested in it.
c If the decision of the Committee/General Body meeting as the case may be, on the application for transfer of shares and /or interest in the capital/property of the society is not communicated to the applicant within 3 months of its receipt, the transfer application shall be deemed to have been accepted and the transferee shall be deemed to have been admitted as a member of the society as provided under section 22 (2) of the Act.
d Any transfer made in contravention of the Act, Rules or the by-laws shall be void and not effective against the society.

3 The Transferee shall be eligible to exercise the rights of membership on receipt of the letter in the prescribed form the society.





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