When buying or selling a resale apartment, many RWA committees demand lakhs of rupees under labels like 'transfer premium', 'welfare donation', or 'infrastructure charges'. In most states, demanding anything beyond statutory ceilings is completely illegal.
The ₹25,000 Transfer Fee Ceiling (Maharashtra Model Bye-Law 38)
Under the Maharashtra Cooperative Societies Act and Government Notification dated August 9, 2019, the maximum premium a housing society can charge for transferring a flat share certificate is strictly capped at ₹25,000.
Demanding voluntary donations, development funds, or percentage-based fees (such as 1% of property value) as a precondition for issuing a No Objection Certificate (NOC) is an illegal practice punishable under cooperative law.
The 10% Non-Occupancy Charge Rule
When a flat owner rents out their unit, societies often attempt to levy punitive monthly penalties called 'Non-Occupancy Charges'.
Under Supreme Court directives and state government orders, non-occupancy charges cannot exceed 10% of the basic service charges (excluding property tax, water, and sinking fund). Charging 50% or 100% additional maintenance to rented flats is strictly unlawful.
- Non-occupancy charges cannot be levied if the flat is occupied by immediate family members (parents, siblings, children).
- Any excess amount collected can be recovered by the owner with statutory interest through the Cooperative Registrar.
- Tenants use the same common facilities as owners; extra amenities fees cannot be imposed.
Common questions
Can an RWA refuse to transfer a flat if the seller refuses to pay an illegal donation?
No. The buyer or seller can file a complaint with the Deputy Registrar of Cooperative Societies, who has the power to issue deemed transfer orders.
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