Navi Mumbai Residents Hope for End to CIDCO’s Transfer Premiums on Resale Properties

Navi Mumbai, 20th September 2024: Residents of Navi Mumbai are optimistic that the government might finally instruct CIDCO to cease charging transfer premiums on resale properties. CIDCO has been imposing these mandatory charges, which range from Rs 25,000 to Rs 10 lakh, excluding GST, based on the property’s size. These fees are required for obtaining a CIDCO No Objection Certificate (NOC), without which banks will not approve mortgage loans, and housing societies will not transfer ownership or grant membership to buyers. In response, various citizen groups in Navi Mumbai have mobilized to pressure CIDCO to end this financial burden.

“The transfer premiums charged by CIDCO have escalated significantly since their introduction in the 1990s. For the financial year from April 1, 2024, to March 31, 2025, they range from Rs 25,000 plus 18% GST for a 215 sq. ft. flat to Rs 10 lakh plus 18% GST for properties or commercial spaces exceeding 2,150 sq. ft. in areas like Airoli and Ulwe. In other zones, such as Dronagiri and Pushpak Nagar, the charges range from Rs 24,465 for small flats to Rs 15.27 lakh for larger commercial properties,” explained Bhaskar Mhatre, Secretary of the Navi Mumbai Housing Federation.

Mhatre pointed out that housing society members are burdened with CIDCO’s fees despite having no direct contractual agreement with the corporation. “When land is transferred, a society may have to pay CIDCO for permissions. However, in property resales, only membership or shares change hands, which falls under the Maharashtra Co-operative Societies Act. CIDCO’s transfer premium effectively controls the transfer of these shares.”

Four organizations—the Navi Mumbai Housing Federation, Sahakar Bharati, Navi Mumbai Vyapari Mahasangh, and Navi Mumbai Citizen Foundation—have united to demand that CIDCO halt these transfer charges. Representatives from these groups have been visiting residential complexes to inform residents of their rights and gather support. Their campaign has already reached 10,000 buildings across 500 societies from Airoli to Panvel-Ulwe, and more are expected to join. A recent meeting with CIDCO’s Managing Director, Vijay Kumar Singhla, raised these concerns, and Singhla assured the groups that he would review their demands.

The associations have also gained backing from local political leaders. Vijay Nahata, a former IAS officer and deputy leader of the Shiv Sena faction led by Eknath Shinde criticized CIDCO’s transfer premium, calling it an unfair burden on ordinary citizens. Nahata reported that CIDCO’s managing director had acknowledged the concerns and indicated that a proposal might soon be submitted to the state government to end the practice of double transfer premiums.

Mangal Kamble, President of the Swach Kharghar Foundation, raised further concerns about CIDCO’s role, questioning where the revenue from these premiums is being used. “With municipal corporations like NMMC and Panvel now managing local infrastructure, CIDCO’s justification for collecting these charges has diminished. In places like Kharghar and Panvel, residents are effectively paying double, as they already pay property taxes to the municipal authorities.”

Advocate Shreeprasad Parab, Director of the State Housing Federation, referenced a Supreme Court ruling that clarified that transferring shares in a cooperative housing society does not equate to transferring immovable property. “Although a flat owner has the right to occupy their residence, the transfer of shares itself does not mean a property sale,” Parab emphasized. He also noted that the Navi Mumbai District Housing Federation has already filed a petition challenging the transfer premium.

A CIDCO representative, who wished to remain anonymous, confirmed that an amendment had made these premiums mandatory for transferring society memberships. A legal challenge to this mandate is currently pending in the Bombay High Court. Despite efforts to reach CIDCO MD Vijay Kumar Singhla for comment, no response has been received.