City and Industrial Development Corporation (Cidco)
NAVI MUMBAI: The city co-operative housing federation may move the court against City and Industrial Development Corporation (Cidco) for levying transfer charges every time a property is put for sale. A resolution to this regard was taken during its annual general body meeting held on August 24.
K S Narayanan, vice chairman of Navi Mumbai Federation Co-operative Housing Federation said the property owners have been paying transfer charges repeatedly for over two decades. "Until 1980s, there was no such clause in the contract, executed between Cidco and buyers. But in the 90s, a resolution was passed by Cidco board, making payment of transfer charges mandatory with retributive effect. This was in clear violation of the Indian Contract Act, where one party decides to alter the contract that turns detrimental for the other party."
Subsequently, the federation is going to issue notices to 2,000 cooperative society members seeking their consent for the move. "Flat owners are the directly affected and, through them, a legal petition can be filed," said A K Bhattacharya, chairman of the federation.
Even the residents are supporting the federation. "Considering that a resident purchases a flat for lakhs, he should be the owner and, therefore, not entitled to take an NOC from anyone while reselling it," said Belapur resident Sudhir Dani.
A senior Cidco official said that any changes in the title of the land will naturally attract transfer charges as Cidco is the lease holder. Changes in this regard has to come from the state government.