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Bombay High Court Quashes CIDCO Transfer Charges on Societies

Bombay High Court Quashes CIDCO Transfer Charges on Societies
Bombay HC Quashes CIDCO Transfer Charges On 2 Old Housing Societies In Navi Mumbai · freepressjournal.in

CIDCO asked two old housing societies in Navi Mumbai to pay charges when flats were transferred.

The societies said their original lease papers did not mention these charges.

The Bombay High Court agreed that later rules could not automatically add new costs to those old agreements.

It cancelled the demands and related notices against the societies.

One demand was for Rs 24.58 lakh over the transfer of 27 flats.

The decision concerns Man Mandir Housing Society in Nerul and Surya Cooperative Housing Society in Vashi.

The court said a new rule must clearly say it applies to the past before it can create past financial liabilities.

The ruling could matter to other societies whose lease deeds were made before February 8, 1990.

Key facts

Court decision
A Bombay High Court division bench quashed CIDCO's transfer charge demands and related notices against two housing societies.
Decision date
September 29; the article is dated October 10, 2026.
Societies affected
Man Mandir Housing Society in Nerul and Surya Cooperative Housing Society in Vashi.
Original demand
CIDCO demanded Rs 24.58 lakh from Man Mandir in October 2016 for the transfer of 27 flats.
Regulatory amendment
The article says transfer-charge provisions were introduced in an amendment to the Navi Mumbai Land Disposal Regulations, 1975, on February 8, 1990.
Court's principle
A later amendment cannot impose new financial liabilities retrospectively unless it is expressly given retrospective effect.
Potential reach
The ruling could affect other societies with lease deeds executed before February 8, 1990.

Quotes

Sunil Chaudhary

President of the Navi Mumbai Cooperative Housing Federation Limited

“Members of several housing societies were being charged substantial amounts when transferring their flats. This judgment reinforces the principle that a financial liability absent from the original agreement cannot automatically be imposed later through subsequent regulations.”
freepressjournal.in

Sources

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