Tenants Beware: Society Shifting Charges May Not Be as Legal as You Think

Many individuals consider renting out their property to be one of the more effortless ways of earning passive income. Once a suitable tenant is found and the rental agreement is formalised, minimal involvement is typically required unless issues arise. If the tenant pays rent punctually, maintains the home well, and complies with society norms, the arrangement can be smooth and rewarding. This is why renting is often viewed as a relatively secure passive income stream.

Unexpected Shifting Charges Spark Concern

However, a resident in Mumbai reportedly encountered an unexpected expense—shifting charges—while renting out their flat. The housing society had informed them that such charges would apply each time the property was rented. This raised questions around the legality of such fees.

Understanding Shifting Charges

Shifting charges are fees levied by cooperative housing societies when residents or tenants move in or out. These are intended to cover administrative overheads and any wear and tear caused during the shifting process. The amount may vary depending on the society and is sometimes detailed in the by-laws as logistics charges, move-in/move-out fees, or relocation charges.

Are Tenants the Only Ones Liable?

Such charges may be imposed on either tenants or owners, depending on individual society rules. In many cases, only tenants are charged, as their frequent movement is seen to create additional wear and tear, administrative work, and strain on common facilities such as elevators and housekeeping services.

What the Law Says in India

Cooperative housing societies operate under state-specific regulations. While general body meetings give them power to create rules, this authority is limited. Legal experts have noted that societies cannot charge fees not explicitly permitted under applicable statutes or by the Registrar of Cooperative Societies (RCS). Because there is no express legal provision for shifting charges, their validity falls into a grey area, requiring examination of each case individually.

Courts have consistently maintained that arbitrary fees by housing societies are not permissible. For instance, in a notable case involving a Mumbai-based cooperative housing society, the Bombay High Court clarified that societies lack the power to levy fees beyond those outlined in the law. Similarly, consumer courts have deemed exorbitant shifting charges to be unfair trade practices. The Registrar of Cooperative Societies also has the authority to intervene when such charges are considered unreasonable or unjustified.

Legal Steps Residents Can Take

Individuals facing unjust shifting charges have several legal options. They may lodge a complaint with the Registrar of Cooperative Societies to seek regulatory action. Alternatively, they may approach consumer courts under the Consumer Protection Act, 2019. If the fee has already been paid under protest, a civil suit can be filed to request reimbursement. Experts also recommend asking the society for a written explanation outlining the amount and reasons for the charge.

When Charges Are Approved in the GBM

If such fees have been approved in a general body meeting of the society, residents still have the option to challenge them. Legal professionals suggest that such levies can be contested before the Registrar of Cooperative Societies or other competent legal forums. It has been emphasized that societies cannot impose charges unilaterally beyond what the law permits. Any such demand must be evaluated against statutory guidelines, judicial rulings, and the principle of reasonableness.