Gujarat govt caps housing society transfer fees at Rs 1 lakh to curb arbitrary charges

Gandhinagar, March 3 (IANS) In a reform impacting more than 30,000 housing and housing service societies across Gujarat, the state government on Monday introduced a legal cap on transfer fees charged during property transactions.

Under the newly amended Cooperative Act of 2024, societies cannot charge more than 0.5 per cent of the total consideration amount, with an upper limit of Rs 1 lakh.

Gujarat Cooperation Minister Jagdish Vishwakarma said that this decision by the state government aims to curb arbitrary and excessive transfer fees imposed by housing societies, which had become a growing concern among homebuyers.

Addressing the issue, Minister Vishwakarma highlighted that the state government had been receiving numerous complaints regarding societies levying exorbitant transfer fees due to the absence of specific regulations.

To address this, the state government has amended the Cooperative Act, bringing much-needed clarity and fairness to the process.

He emphasised that while Rs 1 lakh is the maximum limit, societies can set lower fees through their bye-laws but cannot exceed the prescribed cap.

The new amendment also provides significant relief for property owners transferring their homes to legal heirs.

If a property is inherited without monetary consideration, no transfer fee will be applicable.

Additionally, housing societies are now prohibited from collecting extra charges under misleading names such as development fees, donations, or other hidden levies at the time of property transfer.

This decision is expected to bring greater transparency and fairness to the functioning of cooperative housing societies, benefiting lakhs of residents across Gujarat.

Minister Vishwakarma said that the move has been widely welcomed and will ensure that homebuyers and sellers are not burdened with arbitrary charges imposed by society presidents and committee members.

The Gujarat government has been actively implementing various housing schemes to provide affordable housing to its residents.

The Gujarat Housing Board (GHB), established in 1961, focuses on constructing residential complexes for Below Poverty Line, Economically Weaker Section (EWS), and Low-Income Group (LIG) families.

In 2025, GHB announced plans to develop 80 residential units in Jetpur, Rajkot — 48 for EWS and 32 for LIG — and 150 LIG units in Surat’s Sardar Nagar Colony.

Additionally, 868 Middle-Income Group (MIG) units are planned in Navsari, Surat.

Under the Pradhan Mantri Awas Yojana – Urban, Gujarat has been a leading state, constructing 54,474 houses since 2014-15, accounting for 18.70 per cent of the 2.91 lakh houses built nationwide under the scheme.

However, there has been a 17.5 per cent decrease in houses built under the PMAY-Gramin scheme, with numbers dropping from 77,263 in 2021-22 to 63,765 in 2022-23.

The Affordable Housing Mission in Gujarat also emphasises slum rehabilitation and redevelopment, aiming to improve living conditions for urban poor population.

Despite these efforts, challenges remain, as 83 per cent of houses under the ‘Housing for All’ initiative are not allocated to landless poor families, indicating a need for more inclusive distribution.

–IANS

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