On the last day of the Gujarat Assembly budget session, the Gujarat Co-operative Societies Act, 1961, was amended keeping in mind the transfer fee rules and registration changes.

Jagdish Vishwakarma, the minister of state for cooperation, told the Assembly that according to Sections 6 and 8 of the Act, 10 persons needed to sign the registration form for cooperative societies, which has now been made to eight.

Transfer fee

On purchase of a property, the housing society levies certain charges that go up to lakhs since the committee determines the charge for the transfer fee. However, by adding the provision of Article 159(a), the state government is empowered to prescribe rules for the determination of the transfer fee. 

This means that housing societies will no longer be able to arbitrarily fix the transfer fee.

The amendment also includes a provision for the recovery of bad debts.

Moreover, a new provision under Section 67(a) authorises a person to approve the use of the sinking fund for the recovery of bad debts.

Liquidation simplified

Section 110(c) of the Act doesn’t prioritise settlement for any party when the RBI allocates funds to the state or central governments. 

The Bill provides the authority to the state government to grant extension to the winding up process of a cooperative society beyond the current limit of 10 years.

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