Can the Developer ask for such unreasonable transfer charges without any basis

This query is : Resolved

Quick Summary

A developer cannot arbitrarily demand Rs 2 lakh transfer charges for updating buyer details when the sale deed is already registered and Khatha is mutated. Such charges must have contractual/legal basis. Buyers can seek written justification and challenge unreasonable demands legally.

Shweta

Shweta (Querist)
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19 February 2026 Mr Samir Singh Purchased a vacant plot from Mr Jimmy D’Souza and Mrs Claudia D’Souza in January 2026. The details of vacant plot and transaction are as follows –

1. Mr Jimmy D’Souza and Mrs Claudia D’Souza are the joint and absolute owners by title of the residential vacant Plot, in the project called "Embassy Springs" situated at Devanahalli, Bangalore.
2. Residential Vacant Plot forms portion of larger property developed for residential purposes, forming "Embassy Springs", which was purchased by the vendors via sale deed in financial year 2023, registered at the sub-registrar office.
3. Vendors after having acquired the “Residential Vacant Plot”, got Khatha of the “Residential Vacant Plot” duly mutated in their names in the records of BBMP and the BBMP has also assigned Khatha No.
4. The formal NOCs are currently not being issued because the development is in the handover stage from the "Embassy Springs" (Developer) to the Interim RWA.
Issue :
The "Embassy Springs" (Developer), is asking for exorbitant amount of Rs 2,00,000 as transfer charges to update the name of purchaser (Mr Samir Singh) in their official records.
Queries :
1. Can the "Embassy Springs" (Developer) ask for such unreasonable transfer charges without any basis as they are not party to contract between purchaser and seller for the purchase of Residential Vacant Plot?
2. Is it legal for developer to ask for such amount?
3. What can the seller and purchaser do under any law applicable in such cases in India specifically Bangalore?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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20 February 2026 While developers often use original contract clauses to justify transfer fees, a demand of ₹2,00,000 is likely legally indefensible if challenged. Because the Khatha is already mutated and the Sale Deed is registered, the developer's role is purely administrative, and they cannot legally charge a premium on a private transaction between a buyer and a seller.

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Aashok Kumar Sharma online

Aashok Kumar Sharma online

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20 February 2026 Marking it open. ....... . . . . . . . . . . .

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Shweta

Shweta (Querist)
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20 February 2026 Thanks so much Sir.

Amol S Joglekar

Amol S Joglekar (Expert)
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24 February 2026 Siince khata is in the names of seller, NO need to pay any charges to Embassy Springs.
Let the buyer demand the written communication from developer.

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