The Bombay High Court has cancelled the City and Industrial Development Corporation’s (CIDCO) Rs 24.58 lakh transfer-charge demand against Manmandir Co-operative Housing Society in Nerul and similar demands concerning Surya Co-operative Housing Society in Vashi. The court ruled that a regulatory amendment introduced in 1990 could not be applied retrospectively to lease agreements executed before its introduction.
The dispute began on October 26, 2016, when CIDCO sought Rs 24.58 lakh from Manmandir Society for transfers involving 27 flats. The society challenged the demand, maintaining that its lease agreement did not make individual members liable for such charges. The housing societies and the Navi Mumbai Housing Federation approached the High Court in 2018.
Court Limits Relief to Two Societies
A bench comprising Justices Bharati Dangre and Manjusha Deshpande held that Explanation (iii) to Regulation 3(vii) of the New Bombay Disposal of Lands Regulations, 1975, introduced on February 8, 1990, could not impose a new liability on the two societies under their earlier lease agreements.
However, the court did not invalidate the regulation or grant a general exemption to other housing societies. The federation’s request for broader relief covering 2,528 societies was rejected because the necessary lease documents and particulars were not submitted. Thirteen societies named in the petition were also excluded from the relief.
CIDCO argued that transfer charges helped recover unearned gains when properties on land allotted at concessional rates were resold. The court nevertheless held that the amendment could not retrospectively create a contractual obligation for the two societies.
Federation Considers Further Action
Navi Mumbai Housing Federation secretary Bhaskar Mhatre said, “This is a good order, and it will set a precedent. We will write to CIDCO seeking the same relief for other societies, and may file a PIL if needed,” Mhatre said.
Manmandir Society secretary Murlidhar Nair said, “Our lease never mentioned any transfer fee. We learnt of it in 2015, when we applied for conveyance and lease registration.”
Advocate Shreeprasad Parab cautioned that societies must examine their lease agreements and bye-laws individually. CIDCO said its legal team would review the order before commenting officially.
Source: Mid-day
