Bombay HC Quashes CIDCO Transfer Charges On 2 Old Housing Societies In Navi Mumbai

Navi Mumbai, October 10, 2026: The Bombay High Court has quashed the transfer charge demands raised by the City and Industrial Development Corporation (CIDCO) against two old housing societies in Navi Mumbai, ruling that financial liabilities cannot be imposed retrospectively through subsequent regulatory amendments when the original lease deeds contain no such provision.

The September 29 ruling by a division bench of Justices Bharati Dangre and Manjusha Deshpande offers relief to Man Mandir Housing Society in Nerul and Surya Cooperative Housing Society in Vashi and could have implications for other societies whose lease deeds were executed before February 8, 1990.

CIDCO Demand Challenged In Court

The case arose after CIDCO demanded Rs 24.58 lakh from Man Mandir Cooperative Housing Society in October 2016 for the transfer of 27 flats. The society challenged the demand, arguing that its original lease deed did not provide for transfer charges.

The Navi Mumbai Cooperative Housing Federation, along with Man Mandir and Surya societies, subsequently approached the High Court, contending that CIDCO could not impose new financial obligations on the basis of amendments introduced after the execution of the original lease deeds.

Petitioners Challenge Regulatory Amendments

Representing the petitioners, senior advocate Gayatri Singh argued that the original agreements did not require individual members to obtain CIDCO's prior permission or pay transfer charges when transferring flats or shares. The corporation introduced provisions relating to transfer charges through an amendment to the Navi Mumbai Land Disposal Regulations, 1975, on February 8, 1990.

Court Rules Against Retrospective Charges

The court upheld the principle that a subsequent amendment cannot be applied retrospectively to impose fresh financial liabilities unless it has expressly been given retrospective effect. It accordingly quashed CIDCO's transfer charge demands and related notices against the two societies.

Federation Welcomes High Court Ruling

Sunil Chaudhary, president of the Navi Mumbai Cooperative Housing Federation Limited, said the federation had been fighting against CIDCO's transfer charges for several years.

“Members of several housing societies were being charged substantial amounts when transferring their flats. This judgment reinforces the principle that a financial liability absent from the original agreement cannot automatically be imposed later through subsequent regulations,” he said.

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Chaudhary said the ruling could give a new direction to the long-standing dispute over transfer charges and strengthen the position of old housing societies whose original lease deeds did not contain such conditions.

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