
- Nominee Holds Flat as Trustee: Under Supreme Court ruling in Indrani Wahi, the society must transfer shares to the nominee. However, the nominee does not become the sole owner; they hold the property in trust for all lawful legal heirs.
- Zero Transfer Premium on Death: Under Government Circular No. CHS 2001/M.No.188/14-C and Section 79A of the MCS Act, transmission upon death attracts ₹0 transfer premium. Societies can only charge a ₹100 entrance fee and ₹500 nominal share transfer fee.
- Appendix 15 vs Appendix 16: If a nomination was registered during the member's lifetime, apply under Appendix 15. If no nomination exists, surviving heirs apply under Appendix 16 with an Appendix 17 newspaper notice and Appendix 19 indemnity bond.
- Statutory 90-Day Decision Window: Under Section 154B-13, the managing committee must decide on the transmission application within 90 days. Unlawful delays allow heirs to approach the Deputy Registrar for deemed membership.
1. Statutory Framework: MCS Act & Model Bye-Laws
When a flat owner passes away in a cooperative housing society (CHS) in Mumbai, Pune, Thane, or across Maharashtra, transferring the share certificate and membership is governed by strict statutory rules. Unlike an ordinary property sale, this process is termed a transmission of shares rather than a transfer.
The Maharashtra Co-operative Societies Act, 1960 (MCS Act) was amended by Maharashtra Act No. 23 of 2019 to introduce Chapter XIII-B (Sections 154B-1 to 154B-31), specifically tailored for housing societies. Under Section 154B-13, upon the death of a member, the society is obligated to transfer the deceased member's share and interest to the nominee or, in the absence of a nominee, to the legal heir or representative recognized by the committee.
Applies when the deceased member submitted an Appendix 14 nomination form in the society records. The nominee files an application in Appendix 15 along with the certified death certificate, original share certificate, and undertaking.
Applies when no nomination was submitted or the nominee has died. Surviving legal heirs apply in Appendix 16, supported by Appendix 17 (14-day public notice in two newspapers), and Appendix 19 (Indemnity Bond on stamp paper).
2. Nominee vs Legal Heir Rights: The Supreme Court Rule
One of the most persistent misconceptions in Indian real estate is that a nominee named in housing society records becomes the absolute owner of the flat upon the member's death. This misconception leads to bitter family disputes and fraudulent sales.
The Supreme Court of India settled this debate definitively. The apex court ruled that while a cooperative housing society is legally bound to transfer the shares and flat into the name of the valid nominee under cooperative law, the nominee holds that title solely in a fiduciary capacity as a trustee for all lawful legal heirs.
Nomination does not create a third line of succession. It does not extinguish the rights of other Class-I legal heirs under the Hindu Succession Act, 1956 or the Indian Succession Act, 1925, nor does it override a registered Will. The nominee cannot sell, mortgage, or gift the flat without the consent or registered release deeds of all legal heirs.
Following this judgment and the 2019 MCS Act amendments, Maharashtra introduced the concept of a Provisional Member under Section 154B-1(18)(c). A nominee admitted to the society is officially designated as a provisional member until the formal succession proceedings or family settlements among legal heirs are concluded.
3. CHS Transmission Route & Legal Fee Calculator
Select your family situation below to identify the exact statutory route, required appendices, and audit whether your society is charging illegal transfer fees:
Your society is demanding ₹50,000. By law, you are only liable to pay ₹600 plus actual newspaper publication bills. You can save ₹49,400 by issuing our statutory objection notice citing Government Circular No. CHS 2001/M.No.188/14-C.
4. Appendix 15: Form of Application by Nominee Member
Use this statutory application format under Model Bye-Law 34 if the deceased member previously submitted a valid nomination in your name. Fill in the bracketed placeholders and submit it to the Society Secretary along with the death certificate and original share certificate.
FORM NO. 15 (Under the Bye-Law No. 34) FORM OF APPLICATION FOR MEMBERSHIP OF THE SOCIETY BY THE NOMINEE To, The Secretary / Chairman, [Exact Registered Name of the Co-operative Housing Society Ltd.], [Registered Address of the Society], [City, District, State - PIN Code] Sir / Madam, 1. I, [Full Legal Name of Applicant/Nominee], residing at [Complete Residential Address], hereby apply for membership of the [Name of the Society Ltd.] and for transfer of the shares and interest of late [Full Name of Deceased Member], who was holding Flat No. [Flat/Unit Number] in the building of the Society, and Share Certificate No. [Certificate Number] for 5 fully paid-up shares bearing distinctive numbers from [Start No.] to [End No.] (both inclusive). 2. The said [Full Name of Deceased Member] departed this life on [Date of Death] at [Place of Death]. A certified true copy of the Death Certificate issued by the Municipal Corporation / Competent Authority bearing Registration No. [Reg No.] dated [Date] is enclosed herewith as Exhibit 'A'. 3. The deceased member had, during his/her lifetime, duly nominated me as his/her nominee in accordance with Rule 25 of the Maharashtra Co-operative Societies Rules, 1961, and Bye-Law No. 32 of the Society, under Nomination Form No. [Nomination Ref Number if known] dated [Date of Nomination], which is on record in the Society's Nomination Register. 4. I declare that I hold the said shares and interest in the flat subject to the rights of all lawful legal heirs under the applicable law of succession as enunciated by the Hon'ble Supreme Court of India in Indrani Wahi v. Registrar of Co-operative Societies. 5. I enclose herewith: (a) Certified true copy of the Death Certificate of late [Name of Deceased Member]. (b) Original Share Certificate No. [Certificate No.] for necessary endorsement. (c) Entrance fee of Rs. 100/- and Share Transfer Fee of Rs. 500/- vide Cheque/NEFT No. [Transaction Details] dated [Date]. (d) My recent passport-size photograph and copy of PAN Card and Aadhaar Card. (e) Undertaking / Indemnity Bond in Appendix 18/19. 6. I undertake to abide by the Bye-Laws of the Society and the amendments made thereto from time to time. I request you to kindly place this application before the Managing Committee at its next meeting and admit me as a Member of the Society. Yours faithfully, _______________________________ (Signature of Applicant / Nominee) Name: [Full Legal Name of Nominee] Date: [Date of Application] Place: [City/Place]
5. Appendix 16: Application by Legal Heirs (No Nominee)
Use this statutory application format under Model Bye-Law 35 when the deceased member did NOT make any nomination during their lifetime, or when the nominee has died. Surviving legal heirs can apply jointly, or one heir can apply with written consent (Appendix 20) from all other heirs.
FORM NO. 16 (Under the Bye-Law No. 35) FORM OF APPLICATION FOR MEMBERSHIP BY THE HEIR AT LAW / LEGAL REPRESENTATIVE WHERE NO NOMINATION EXISTS To, The Secretary / Chairman, [Exact Registered Name of the Co-operative Housing Society Ltd.], [Registered Address of the Society], [City, District, State - PIN Code] Sir / Madam, 1. I/We, [Full Legal Name(s) of Applicant(s)], residing at [Residential Address], hereby apply for membership of [Name of Society Ltd.] and for transfer of the shares and interest of the deceased member late [Full Name of Deceased Member], in Flat No. [Flat Number] and Share Certificate No. [Certificate Number] for 5 fully paid-up shares. 2. The late [Full Name of Deceased Member] passed away intestate on [Date of Death] at [Place of Death]. A certified copy of the Death Certificate is annexed as Exhibit 'A'. 3. To the best of our knowledge and according to the records of the Society, the deceased member did not make any nomination during his/her lifetime / the nominee nominated by the deceased has passed away on [Date]. 4. The deceased is survived by the following Class-I legal heirs and no other heirs: (i) [Name of Heir 1], Age: [Age], Relationship: [e.g. Widow/Son], Address: [Address] (ii) [Name of Heir 2], Age: [Age], Relationship: [e.g. Daughter], Address: [Address] (iii) [Name of Heir 3], Age: [Age], Relationship: [e.g. Son], Address: [Address] 5. All other legal heirs have executed their Consent Letters / Affidavits in Appendix 20, relinquishing their right to membership in favor of the Applicant [Name of Applicant], while reserving their statutory succession rights. 6. In accordance with Bye-Law No. 35, I/We request the Society to publish the Public Notice in Appendix 17 in two local newspapers (one in Marathi and one in English) at our cost, inviting claims or objections within 14 days. 7. I/We enclose herewith: (a) Certified Death Certificate. (b) Original Share Certificate No. [Number]. (c) Certified Genealogical Tree / Pedigree Affidavit of Legal Heirs. (d) Consent Letters / Affidavits in Appendix 20 from other legal heirs. (e) Statutory Indemnity Bond in Appendix 19 on Non-Judicial Stamp Paper. (f) Entrance fee of Rs. 100/- and Share Transfer Fee of Rs. 500/-. Yours faithfully, _______________________________ (Signature of Applicant Legal Heir) Name: [Full Legal Name] Date: [Date of Application] Place: [City/Place]
6. Appendix 17: Public Notice Format for Newspapers
Under Model Bye-Law 35, when transmission is processed without a nomination or probate, the housing society must publish this statutory 14-day public notice in two local newspapers (one in English and one in Marathi/regional language) at the applicant's expense.
FORM NO. 17 (Under the Bye-Law No. 35) PUBLIC NOTICE [Name of the Co-operative Housing Society Ltd.] [Registration No. and Registered Address of the Society] NOTICE is hereby given that Shri / Smt. [Full Name of Deceased Member], a Member of the [Name of Society Ltd.], holding Flat No. [Flat No.], situated on the [Floor No.] floor in the building known as "[Building Name]", and holding Share Certificate No. [Cert No.] for 5 fully paid-up shares bearing distinctive numbers from [Start No.] to [End No.] (both inclusive), died on [Date of Death] at [Place of Death], without making any nomination. The Society has received an application for transfer of the said shares and interest of the deceased member in the capital/property of the Society from Shri / Smt. [Full Legal Name of Applicant], residing at [Address], claiming to be the lawful heir / legal representative of the deceased. The Society hereby invites claims or objections from any other legal heir(s), claimant(s), or persons who have any right, title, interest, or claim in or to the said shares and flat of the deceased member, within a period of 14 (fourteen) days from the date of publication of this notice. Such claims or objections should be submitted in writing along with documentary evidence in support thereof to the Hon. Secretary of the Society at the address mentioned above. If no claims or objections are received within the period of 14 days, the Society shall be at liberty to process the transfer of the said shares and interest of the deceased member in favor of the applicant Shri / Smt. [Applicant Name], in accordance with the Bye-Laws of the Society, without any further notice or reference to any person. Claims or objections received after the expiry of the 14-day period shall not be entertained. FOR AND ON BEHALF OF [Name of the Co-operative Housing Society Ltd.] _______________________________ Hon. Secretary / Chairman Date: [Date of Publication] Place: [City/Place]
7. Appendix 19: Indemnity Bond Format on Stamp Paper
Under Model Bye-Law 35, the applicant legal heir or nominee must execute an Indemnity Bond in Appendix 19. This must be printed on Non-Judicial Stamp Paper of ₹200 or ₹500 (as per Article 34 of the Maharashtra Stamp Act), signed in the presence of two witnesses, and attested by a Notary Public.
FORM NO. 19 (Under the Bye-Law No. 35) FORM OF INDEMNITY BOND (To be executed on Non-Judicial Stamp Paper of Rs. 200/- or Rs. 500/- and Notarized) THIS INDEMNITY BOND is executed at [City/Place] on this [Day] day of [Month], [Year], by: Shri / Smt. [Full Legal Name of Applicant Heir], son/daughter/wife of late [Parent/Spouse Name], aged about [Age] years, Indian Inhabitant, residing at [Complete Residential Address], hereinafter called the "OBLIGOR" of the ONE PART; IN FAVOR OF: [Exact Registered Name of Co-operative Housing Society Ltd.], registered under Registration No. [Reg No.], having its registered office at [Society Address], hereinafter called the "SOCIETY" of the OTHER PART. WHEREAS: 1. One late Shri / Smt. [Full Name of Deceased Member] was a member of the Society holding Flat No. [Flat No.] in building "[Building Name]" and holder of Share Certificate No. [Cert No.] for 5 fully paid-up shares. 2. The said member died on [Date of Death] leaving behind the Obligor as lawful legal heir. 3. The deceased member had not made any nomination, and the Obligor has applied in Form No. 16 for transfer of membership. 4. The Society has agreed to transfer the shares and interest upon the Obligor executing this Indemnity Bond. NOW THIS INDEMNITY BOND WITNESSETH: 1. The Obligor agrees and covenants to keep the Society, its Managing Committee, and office bearers indemnified and harmless at all times against all claims, actions, suits, demands, losses, damages, costs, charges, and legal expenses arising from transferring the said shares and flat to the Obligor. 2. In the event of any adverse claim by any other heir or third party, the Obligor shall, at their own cost, defend and resolve such dispute and reimburse the Society. SIGNED, SEALED AND DELIVERED by the Obligor: _______________________________ (Signature of Obligor) WITNESSES: 1. [Name & Address] 2. [Name & Address] NOTARIZED BEFORE ME
8. Comparison Table: Transmission Paths & Documents
Housing societies across Maharashtra follow different procedural standards depending on whether a nomination, Will, or family consensus exists. The table below outlines the statutory requirements for each path:
| Transmission Route | Statutory Bye-Law | Key Documents Required | Newspaper Notice? | Membership Nature | Max Society Fee |
|---|---|---|---|---|---|
| Valid Nomination Recorded | Model Bye-Law 34 | Appendix 15, Death Cert, Original Shares | Not Required | Provisional Member (Trustee) | ₹600 Max |
| No Nomination on Record | Model Bye-Law 35 | Appendix 16, Appendix 19 Bond, Pedigree Tree | Mandatory (14 Days) | Regular Member (Post Notice) | ₹600 + Ad Cost |
| Probated / Registered Will | Bye-Law 34 / 35 | Appendix 15/16, Probate Copy / Will Deed | Usually Waived | Absolute Regular Member | ₹600 Max |
| Multiple Consenting Heirs | Model Bye-Law 35 | Appendix 16, Appendix 20 NOCs from all co-heirs | Mandatory (14 Days) | Regular Member (Lead Heir) | ₹600 + Ad Cost |
9. Society Transfer Charges: Defeating Illegal Demands
Managing committees often exploit grieving families by claiming that "society bye-laws require a ₹50,000 donation" or "₹1,00,000 building development fund" to process a flat transmission. These demands are completely illegal under Maharashtra law.
Under Government Circular dated 09-08-2001 issued under Section 79A of the MCS Act, the State Government fixed a statutory ceiling of ₹25,000 on voluntary sale transfers. Crucially, the Government issued explicit directions that in case of transmission upon death to a nominee or legal heir, NO TRANSFER PREMIUM (₹0) can be charged.
10. Step-by-Step SOP: Transmission Approval Timeline
Follow this 5-stage standard operating procedure to secure flat transmission within the statutory 90-day window mandated by Section 154B-13:
Submit a formal intimation letter along with a certified municipal death certificate to the Society Secretary. Inspect the society's Nomination Register (Appendix 14) to confirm whether a nomination is officially on record.
Execute Appendix 15 (if nominee) or Appendix 16 (if legal heir). Execute the Appendix 19 Indemnity Bond on ₹200/₹500 stamp paper before a Notary Public. Attach original share certificate and tender ₹600 fee via bank transfer.
For Appendix 16 applications, the society issues Appendix 17 in two local newspapers (one Marathi and one English). A mandatory 14-day window is provided for any competing claimants to submit written objections.
Upon expiry of the 14 days without objection, the Secretary places the application before the next Managing Committee meeting. The committee formally passes a resolution approving admission of the applicant.
The Chairman and Secretary endorse the applicant's name on the back of the original Share Certificate, update the Register of Members (Form I) and List of Members (Form J), and issue a formal Welcome Letter.
11. Real Case Studies: Mumbai, Pune & Thane CHS
Real-world examples of how Indian families navigated society transmission challenges:
Following his mother's demise, a resident in Bandra West applied for transmission under Appendix 15. The society refused to table his application unless he paid a ₹1,50,000 "sinking fund contribution". The heir issued our statutory objection notice citing Government Circular 09-08-2001 and copied the Deputy Registrar. The society backed down within 10 days and transferred the share certificate for ₹600.
A father passed away in Pune without nominating anyone. His two married daughters agreed that the elder sister would be the registered member. They submitted Appendix 16 along with the younger sister's Appendix 20 consent letter, published Appendix 17 in Sakal and Indian Express, and executed an Appendix 19 bond on ₹500 stamp paper. The flat was transmitted smoothly in 55 days without court probate.
A brother nominated by his late father attempted to sell the Vashi flat claiming exclusive ownership. His sisters filed an objection with the society citing Indrani Wahi. The society admitted the brother solely as a Provisional Member (trustee) and refused to issue an NOC for sale without registered release deeds from both sisters.
12. Professional Legal Backing & Advocate Profile
Advocate Anuj Anand Malik leads the Property Mutation and Succession Practice at AMA Legal Solutions. With over a decade of courtroom and advisory experience across the Bombay High Court, Cooperative Courts, and Maharashtra Real Estate Regulatory Authority (MahaRERA), he has advised over 1,500 families on resolving contested flat transmissions, defeating illegal society extortion fees, and drafting bulletproof testamentary trusts.
13. Frequently Asked Questions: CHS Flat Transmission
Plain-English answers to common questions about housing society flat transfer after death in Maharashtra:
14. Statutory Citations & Official Cooperative Portals
- Section 26: Rights and liabilities of members upon cessation or transfer.
- Section 79A: Government powers to issue binding directives and fee caps.
- Section 154B-13: Transfer of interest on death of member in housing societies.
- Model Bye-Laws 34 & 35: Transmission procedures with and without nomination.
- Supreme Court Judgment: Indrani Wahi v. Registrar of Co-operative Societies (2016) 6 SCC 440.