In a ruling favouring homebuyers, the Madras High Court (HC) upheld an order issued by the district registrar (administration) Chennai that declared collection of the transfer fee by flat owners’ association to be illegal. As part of the judgement, the court has directed the flat owners’ association to refund the transfer fee collected from the flat owner within four weeks.
The writ petition filed by Ankur Grand Owners’ Association, EVR Periyar Road, Kilpauk, Chennai, challenged the 2016 order of the district registrar who canceled the transfer fund collection and directed refund to a purchaser. The association was collecting 1% of the sale value of the flat or Rs 50 per sqft, whichever was more, as transfer fee.
“The apartment owners’ association has no role to play either in the purchase or transfer of flats. It is the property right conferred on the owner to sell or transfer his flat. The association cannot prevent any owner who is empowered to sell, settle, gift, will or transfer property. It is a constitutional right which cannot be infringed,” stated Justice SM Subramaniam in the order, according to TNIE.
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