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Membership of Housing Society – Welfare Fee is Legal Camouflage

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Judgment dated 14.8.2025 of the High Court of Bombay in Writ Petition No.10953 of 2025 of M/s. Tirthankar Darshan Cooperative Housing Society Ltd.  Vs. State of Maharashtra and others

After purchasing shop No.4 in the society premises on 24.7.2019, the respondent nos.4 and 5 submitted an application to admit them as members of the petitioner society and paid transfer fee of Rs.25,000/-.   The appeal was filed before the Deputy Registrar since the society did not communicate the decision within the time stipulated under Section 22(2) of the MCS Act.

The Deputy Registrar allowed the appeal of respondent nos.4 and 5.   This was confirmed in revision.

The Society contended that the respondent nos.4 and 5 had not complied with the pre-condition of welfare fee with the society and therefore, membership was refused.

HELD that the Society is precluded from charging any amount apart from the transfer fee of Rs.25,000/-.   The resolution of the Society to charge welfare fee is a camouflage to recover more amount for transfer than permissible in law. Thus, the authorities were justified in directing the petitioner to admit the respondent nos.4 and 5.

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