Madras High Court Stays Single Judge Order Which Held Apartment Owners Association Cannot Claim Transfer Fee On Every Resale Of Flat

The Madras High Court stayed the imposition of a transfer fee by an Apartment Owners' Association, ruling that such fees must have a legal basis. A property owner had challenged the association’s decision to levy a transfer fee upon the sale of his apartment, arguing that it was arbitrary. The Court held that the association cannot unilaterally impose fees without proper authorization or legal backing. This ruling highlights the importance of transparency and legality in the operations of resident associations, ensuring that property owners are not subject to arbitrary charges.