In Gujarat, many societies are charging development fees, even though new residents have already paid the transfer fee.

According to the Gujarat Co-operative Societies Act, a transfer fee of ₹50,000 must be paid when ownership of a property is transferred. However, after the new owners pay the transfer fee, some societies charge additional amounts, up to  ₹1 lakh to ₹10 lakh or more, under the name of a ‘development fee.’

To curb the practice of collecting money under the guise of a development fee, the Gujarat government is set to introduce new rules to address this issue.

The rules will be applicable for all the societies be it Cooperative housing society or cooperative service society.

Once the new rules are implemented, society authorities who engage in these practices will be removed from the board for six years.

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