Home / Money / Personal Finance /  Are memberships for flats arranged by the developers?
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I live in a new flat in a redeveloped co-operative housing society (CHS) in Mumbai. The agreement says that the membership of new flat owners will be arranged by the developer. My friend who is an expert in society matters says that the builder has no jurisdiction on the membership process. The clause would have been put as a general clause which is to be ignored. Since there is an existing CHS, it’s the responsibility of the society to give membership or share certificates. Can you please share your opinion?

—Deepak Iyer


For the saleable component of a redeveloped society, there is a privity of contract between the developer and the flat purchaser, which is recorded under the flat purchase agreement. Generally, the society and the developer have agreed that the purchaser of the flats of the saleable component of the developer’s area shall become members of the society. The society empowers the developer to take fees for society membership, therefore this arrangement between the two is reflected in the development agreement.


I live in a chawl in Mumbai. After my father passed away, the tenancy rights were allotted to me. I pay my rent regularly to the owner. I’m thinking of selling the house in the chawl. I want to know how much I have to pay as a part of the share to the landlord.

—Name withheld on request


The Maharashtra Rent Control Act entitles the tenant to receive consideration as a condition of the relinquishment, transfer or assignment of tenancy of his tenanted premises, provided there is no prohibition imposed by the landlord.

The Act also entitles the landlord to receive any fine, premium or other like sum or deposit or any consideration in respect of the grant, or for giving his consent to the transfer of a tenancy to any other person.

Aradhana Bhansali is partner, Rajani Associates.

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