The Hindu : New Delhi News : Residents' Front seeks simple conversion procedure

Online edition of India's National Newspaper
Tuesday, Aug 30, 2005

New Delhi

New Delhi

Residents' Front seeks simple conversion procedure

Staff Reporter

Changes in Delhi Cooperative Societies Act also sought

NEW DELHI: The Residents' Front on Delhi Cooperative Societies Act has urged Chief Minister Sheila Dikshit to abolish the very concept of linking membership to conversion of flat from leasehold to freehold so that the whole procedure gets simplified.

In a letter sent to Ms Dikshit, the Front has stated that if at all freehold has to be done, the society as a whole should be converted from leasehold to freehold either at the land price prevailing at the time of allotment as is the system in Gurgaon (Haryana) or a fixed term ground rent should be charged from society in advance to convert the whole society to freehold as it is in Noida (U.P).

The hefty transfer fee, it said, should be charged from the future transferor only and no transfer fee should be charged from the existing transferee considering the fact that a general power of attorney (GPA) occupant had already paid heavy premiums to the transferor in the past for purchase of his or her flat property.

Also, in many cases, the GPA occupants had gained access to their house after paying an "entry fee", which has been declared illegal in courts, but is still charged in thousands or lakhs of rupees by the management committees.

Claiming that the Delhi Government has been keeping silent on the issue of illegal entry fee which has been the subject of many brawls in the societies and which have also been banned by the courts in various rulings, the Front said unfortunately it is still being charged in 90 per cent of the societies. The Delhi Cooperative Societies Act 2003 also fails to address this issue of public interest.

The Front has also sought changes in Section 70 of Chapter VIII of the Act which pertains to disputes which may be referred for arbitration on the grounds that in the name of arbitration the members are being deprived of the right to appeal in the court of law, especially in matters related to disputes between them and management.

Stating that the Registrar Cooperative Societies has been given undue powers to settle disputes, it said even the courts have no jurisdiction to entertain any suits or proceedings in respect to these disputes. This is nothing but infringement of the civil rights of the citizens and disrespect to the democratic set up of this country.

The Front has also asked for changes in Section 80 of Chapter IX which relates to provision for transfer of occupancy right not to be ordinarily refused and provision for appeal.

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