Forfeited society plot may be sold to a qualified purchaser, with transfer subject to dues and membership requirements.

In a co-operative housing society, forfeiture of a member's interest under SAFEMA vested in the Central Government only the rights and title actually enjoyed by the member, not any greater interest than the member possessed. As the society retained ownership of the land and the parties were willing to facilitate a sale, the Court directed the respondents to identify a purchaser, allowed the petitioners to suggest buyers, and required a joint application to the society after the sale was finalised. The transfer was to be made only in favour of a qualified purchaser admitted as a member, subject to lawful dues and transfer charges.

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Issues: Whether, in relation to a plot in a co-operative housing society that had been forfeited under SAFEMA, the Society could refuse the Central Government's request to have the plot transferred and whether the matter could be resolved by identifying a purchaser and transferring the plot to a qualified member.

Analysis: The plot was held in the setting of a co-operative housing society where the society retained ownership of the land and the member had rights in the superstructure and allied incident rights. The forfeiture order was treated as vesting in the Central Government all rights and title that the member actually enjoyed in the property, but not any right the member never possessed. The pleadings also showed that both sides were willing to facilitate a sale to an intending purchaser, provided the society's by-laws and legal dues were satisfied. In that background, the Court found it appropriate to direct the respondents to identify a purchaser, permit the petitioners to suggest buyers, and require a joint application to the Society once the sale was finalized.

Conclusion: The petition was disposed of with directions facilitating sale of the forfeited plot and transfer in favour of a qualified purchaser who is admitted as a member of the Society, subject to payment of lawful dues and transfer charges.

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