'Societies can't charge entry fees'

NEW DELHI: Buying a flat in a housing society is not enough to ensure that you can move in. In a racket prevailing across the city, office bearers of societies have been pocketing wads of money illegally in the name of "entry fee".
Now, the Delhi government has decided to take the issue to the committee reviewing the Delhi Co-operatives Act 2003, and suggest that punitive measures be introduced for such complaints.
"In many societies, it has developed into an extortion racket. We will discuss this, along with some other problems, with the committee," said revenue minister Rajkumar Chauhan.
The review committee is headed by Delhi Co-operative Housing Finance Corporation president Deep Chand Sharma.
The amount is taken in the name of development fee, transfer fee or plain common good fund and varies from Rs 20,000 to upto Rs 1 lakh.
Some societies issue receipts, some don''t. Whichever the case, there is simply no check. This despite the fact that the directive under Rule 77 dated December 14, 1999, clearly states that no entry fee can be charged in any form.
The directive of the registrar, societies was circulated to various office bearers of societies in October 2001. But despite that, society managing committees continue to mislead people.
Take the instance of Sushmita Bandopadhyay who bought a flat in Sargodha Housing society in Sector 7, Dwarka. The society asked her for an entry fee of Rs 20,000. She was told everybody had paid.
Despite bringing in a letter from the registrar stating that this was illegal, the office bearers did not relent. Finally, she was forced to shell out the amount. The society issued her a receipt for Rs 10,000.
The society''s version is that they need the money for the development of the society. But in many other societies, the money is allegedly pocketed by the office bearers.
"We have heard tales of different office bearers fixing shares out of the money that comes in," a Delhi government official admitted.
With prices of flats sky-rocketing due to an ever increasing influence of builders, officials admitted it is important to bring this racket under control.
"This will happen only when the registrar is enabled to take action against such unscrupulous elements," the official said.