The Gujarat Assembly unanimously passed an amendment bill, empowering the state government to regulate transfer fees collected by cooperative housing societies during property transactions. Minister of State for Cooperation Jagdish Vishwakarma emphasized the necessity of this change due to the lack of clarity in the current Act, leading to arbitrary fee collections. The amendment aims to prevent excessive fees and ensure transparency, particularly as approximately 1,500 new housing societies register annually. Additionally, the bill proposes reducing the minimum membership requirement for cooperative housing society registration from 10 to 8, aligning with RERA regulations. Separately, the Assembly approved a bill elevating DAIICT into Dhirubhai Ambani University, expanding its academic scope.
In a unanimous decision, the Gujarat Assembly passed an amendment bill empowering the state government to establish rules for determining the transfer fee collected by cooperative housing societies when a person purchases a house from an existing owner. The amendment inserts a new section into the Gujarat Co-operative Societies Act, 1961, specifying that "a co-operative housing society or a cooperative housing service society shall not collect transfer fee more than the transfer fee as may be prescribed."
Minister of State for Cooperation Jagdish Vishwakarma highlighted the need for this amendment, explaining that the current Act lacks a specific provision on transfer fees collected by societies from new owners of residential units. Vishwakarma emphasized that the absence of a provision has led to the arbitrary collection of transfer fees by society management, reaching several lakh rupees at times, which puts financial pressure on new homeowners.
The proposed amendment aims to empower the government to establish specific rules for the fixation of transfer fees, preventing the arbitrary collection of fees by society chairpersons or secretaries. With approximately 1,500 new housing societies registered under the Act annually, the amendment addresses the growing need for transparency and fairness in fee collection.
Additionally, the bill proposes a change in the minimum membership requirement for registering a cooperative housing society. Instead of the current stipulation of a minimum of 10 members, the amended Act allows the registration of a cooperative housing society with eight members. This adjustment aligns with the Real Estate (Regulation and Development) Act, which mandates compulsory registration under RERA for housing projects with eight or more units.
In a separate legislative move, the Assembly passed a bill converting the Dhirubhai Ambani Institute of Information and Communication Technology (DAIICT) in Gandhinagar into a comprehensive university offering courses and research opportunities across various disciplines, including management, law, and design. Established in 2003 through an Act, the institute, commonly known as DAIICT, will now be recognized as Dhirubhai Ambani University.
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