<p> The High Court has ruled that Housing Co-operative Societies cannot charge any lump sum for inducting any new member, who is generally a buyer of a flat/house from the society. <br /><br /></p>.<p>While allowing an appeal, a division bench comprising Justice Vineet Saran and Justice B Srinivase Gowda recently said that a lump sum contribution can in no case be termed as fee, either for admission or entry. <br /><br />The appellants, Krishnamurthy Subramanyam and two others, dwellers of the Shashikiran apartment in Malleswaram had challenged the single bench order, which had allowed the Samyukta Bharath Housing Co-operative Society Limited' s contention of collecting lump sum for membership. <br /><br />The appellants had sought membership under the Karnataka Co-operative Societies Act, 1959. <br /><br />The appellants had contended that the said society apart from collecting fee, share fee etc to enrol as new members to the society, it was also charging a lump sum amount of Rs 15,000.<br /><br />The bench, in its ruling, said that there is no provision for charging any kind of contribution (other than fee) from a person seeking membership. The bench further said even though there was a resolution passed in the general body meeting of the society on collecting the lump sum, but if collected, it would amount to charging a premium on sale of flats for which there is no authorisation under the Act, Rules or Bye-laws. <br /><br />If resolution is passed against the bye-laws to collect lump sum, the person purchasing flats from existing owners would be saddled with the additional contribution and thereby the society may start charging as premium. A non-profit housing society cannot be allowed to charge, the bench ruled.<br /><br /></p>
<p> The High Court has ruled that Housing Co-operative Societies cannot charge any lump sum for inducting any new member, who is generally a buyer of a flat/house from the society. <br /><br /></p>.<p>While allowing an appeal, a division bench comprising Justice Vineet Saran and Justice B Srinivase Gowda recently said that a lump sum contribution can in no case be termed as fee, either for admission or entry. <br /><br />The appellants, Krishnamurthy Subramanyam and two others, dwellers of the Shashikiran apartment in Malleswaram had challenged the single bench order, which had allowed the Samyukta Bharath Housing Co-operative Society Limited' s contention of collecting lump sum for membership. <br /><br />The appellants had sought membership under the Karnataka Co-operative Societies Act, 1959. <br /><br />The appellants had contended that the said society apart from collecting fee, share fee etc to enrol as new members to the society, it was also charging a lump sum amount of Rs 15,000.<br /><br />The bench, in its ruling, said that there is no provision for charging any kind of contribution (other than fee) from a person seeking membership. The bench further said even though there was a resolution passed in the general body meeting of the society on collecting the lump sum, but if collected, it would amount to charging a premium on sale of flats for which there is no authorisation under the Act, Rules or Bye-laws. <br /><br />If resolution is passed against the bye-laws to collect lump sum, the person purchasing flats from existing owners would be saddled with the additional contribution and thereby the society may start charging as premium. A non-profit housing society cannot be allowed to charge, the bench ruled.<br /><br /></p>
