If residential society doesn't register under registered act.So as a legal act to ready the stamp and round seal in the name of society is legal or not? What are the rules to made stamp? Futher,a chief (Pramukh) of society bags Rs.15000/- from society persons as development fees Or as for society transfer fees.So,is this legal? Kindly guide me about society registration act and development fees. What are the legal sections for the whole matter?

Detailed Legal Analysis

In India, particularly in Gujarat, a residential society must register under the Gujarat Co-operative Societies Act, 1961, to operate legally. If a society fails to register, it cannot legally create a stamp or round seal, nor can it impose fees such as development or transfer fees without proper legal backing.

Here are key points regarding the registration and legality of fees in a housing society:

• Registration Requirement:
  • The society must be registered under the Gujarat Co-operative Societies Act, 1961 (Section 7).
  • Registration provides legal recognition and rights to the society and its members.
• Stamp and Round Seal:
  • A stamp and round seal can only be used by registered entities as per the Indian Stamp Act, 1899.
  • Without registration, any stamp or seal used by the society lacks legal validity.
• Development Fees:
  • Development fees or transfer fees must be justified and outlined in the society's bylaws, which should be approved during registration.
  • As per the provisions of the Gujarat Co-operative Societies Act, 1961, any fees collected must be in accordance with the rules framed under the Act (Section 18).
• Legal Consequences:
  • If the chief (Pramukh) of the society collects fees without a proper legal framework or registration, it can be deemed illegal.
  • Members may challenge the collection of such fees in the appropriate legal forum.

In conclusion, registration of a residential society is crucial for legal operations, including the right to create stamps and collect fees. The chief (Pramukh) should refrain from collecting any fees until the society is registered and has established clear bylaws regarding any financial obligations. For further clarity, consulting a legal expert in cooperative society laws is recommended.