Seller do not require NOC from society at the time of transfer of a flat

Actor Emraan Hashmi, who was refused an NOC to buy a flat in Nibbana housing society at Pali Hill allegedly because he was a Muslim, has one more quarter to turn to for help. The model bye-laws framed by the state government under the Maharashtra Cooperative Societies Act hold that a person does not require a no objection certificate (NOC) from the society at the time of transfer of a flat.

“Bye-law No 38 prescribes a list of documents required for selling a flat, but nowhere is it mentioned that the society’s NOC is mandatory,’’ says advocate Vinod Sampat. “This being the case, there is absolutely no question of needing an NOC in the present case.’’ Sampat also cites a Supreme Court case (Sanwarmal Kejriwal v/s Vishwa Cooperative Housing Society, Churchgate) where the court had ruled that a society could not bar the admission of a member if he met with the qualifications laid down under the bye-laws.

Divisional joint registrar of cooperative societies, Mumbai, M P Kalyankar, agrees with Sampat. “The model bye-laws of March, 2001, are clear that an NOC is not required from a society,’’ he says. He adds, “The 2009 model bye-laws, which will be issued soon, do not contain any such clause either. Apart from this, Section 23 of the Maharashtra Cooperative Societies Act clearly emphasises the concept of open membership, where there is no scope for discrimination.’’

Kalyankar also cites a Bombay high court judgment of 2000 where Justice D Y Chandrachud rejected the contention of St Anthony Cooperative Housing Society which had amended its byelaws to restrict membership only to Catholics. “The judge had clearly stated that the law was in favour of open membership,’’ he states.


THE LAW SAYS

  • Bye-law No 38 under the Maharashtra Cooperative Societies Act does not list an NOC from the housing society among the documents required to sell a flat. A society that refuses an NOC must give its reasons in writing.
  • Section 23 of the Act emphasises open membership and nondiscrimination. A Bombay high court judgment in 2000 rejected the contention of a society that amended its bye-laws to restrict membership to Catholics.
  • In another case, the Supreme Court ruled that a Churchgate society could not bar the admission of a member who met with qualifications laid down under the bye-laws.

‘Hsg societies must adopt 2001 bye-laws’

Mumbai: Advocates weighing in on the alleged discrimination against actor Emran Hashmi by Nibbana housing society in Bandra say some laws may be in his favour, and that a no-objection certificate (NOC) from the society is not mandatory for the sale of a flat.

Advocate D S Wader, former chairman of the Mumbai Housing Federation, says that a society which has not adopted the 2001 model bye-laws can continue to be guided by the old byelaws under which an NOC was needed. Divisional joint registrar of cooperative societies, Mumbai, M P Kalyankar is categorical that all societies are expected to adopt the 2001 model bye-laws. “If at all a transferor or transferee of a flat want an NOC from the society for their personal reasons, the society will have to issue it within a month of receiving the application,’’ says Kalyankar. Adds Wader, “If a society refuses an NOC, the law requires it to give its reasons in writing.’’

When contacted, J P Chhetri, secretary of the Nibbana housing society, told that he was unaware which bye-laws had been adopted by his society.

Related posts:

  1. No Income Tax on Transfer Fee collected from a transferor or a transferee: Mumbai High Court
  2. To claim deduction under section 80P the status of the co-operative society shall be a primary society
  3. Income Tax Department raid at Buldhana credit society
  4. Judgement for Transperency in Co-operative Society & Bank Audits in Maharashtra
  5. Exporters won’t require CA audit to avail 2% interest rate subvention

38 Comments on “Seller do not require NOC from society at the time of transfer of a flat”

  • Kiran Joshi wrote on 22 August, 2009, 5:33

    We are very much thankful to the publisher for providing such information to needy residents.

  • Husein Khakoo wrote on 31 October, 2009, 7:19

    What is the process if society refuse to transfer the flat in the name of buyer who is the other legal authority to do it.
    husein_bk@rediffmail.com

  • Suneeta wrote on 26 November, 2009, 12:04

    This is a very useful piece of information for ordinary buyer/seller of co op society flats. Since Register of Co op Societies is confirming that NOC is not mandatory. Otherwise Society handles this matter in their whims and fancies.

  • Roseblack wrote on 1 December, 2009, 19:29

    Thank for providing such a useful information. but if a buyer want to purchase a flat the society refused the NOC but he goes ahead with the sale. Now if he is buying the flat on loan from bank. The bank will demand NOC in that case what to Do.

  • Sandeep Kanoi wrote on 2 December, 2009, 0:09

    This is happening in many cases and we cant do any thing except going court to get NOC.

  • Sushil wrote on 16 March, 2010, 10:35

    but if a buyer want to purchase a flat the society refused the NOC but he goes ahead with the sale. Now if he is buying the flat on loan from bank. The bank will demand NOC in that case what to Do.

  • Bhavesh wrote on 20 March, 2010, 13:07

    I wish to differ, NOC should be mandatory in order to check that no unwanted characters creep into an otherwise peaceful society. A member who stayed in the soc should atleast be considerate towards other members in not selling to people would not be welcomed or are not desired.

  • Pritesh wrote on 5 April, 2010, 11:10

    but if a buyer want to purchase a flat the society refused the NOC but he goes ahead with the sale. Now if he is buying the flat on loan from bank. The bank will demand NOC in that case what to Do.

  • Sushil wrote on 8 April, 2010, 11:46

    whom should i consult for the above case

  • Anand wrote on 21 April, 2010, 11:20

    There are so many people asking the same question “if a buyer want to purchase a flat the society refused the NOC but he goes ahead with the sale. Now if he is buying the flat on loan from bank. The bank will demand NOC in that case what to Do”

    Do we have any solution because this is now a days becoming practice to block/Harass people and blackmail them and ask for money to get such NOC

  • dipalee wrote on 7 May, 2010, 10:45

    we are also facing such problem, earlier my secreaty want to buy my flat much below market rate. so i said no i can not accept your offer. now when i sold it to other buyer, we also enter into a agreement and paid stamp duty and ragistration. now he is just delaying saying he has no time. In addition he called my buyer informed him that as this flat is below water tank , he will not allow any work to be done in this flat even he will not allow him to put box grill as it will damage the building. This lead to delay of our payment and financial loss to me. can u please help us . Society name is vast riddhi b , vastu enclave Andheri east.

    Thanks

  • Sushil wrote on 13 May, 2010, 11:14

    can some 1 ans the query

  • Ashish Dalvi wrote on 8 June, 2010, 10:57

    Can some one answer Sushil’s query. I have a similar problem. Need the NOC for the Loan. Have already done the transaction as NOC not needed for the registration.

  • Ashish Dalvi wrote on 8 June, 2010, 10:58

    What is the legal re-course. Can we sue the society? How to process the loan?

  • satish wrote on 24 July, 2010, 15:41

    This is to thank you for circulating such a imp information and legality of NOC definitely this article will help lakh of people .

  • Prafulla Patil wrote on 3 October, 2010, 15:03

    i purchased a flat from KKc, KKC had Purchased the same flat from Nigdi Pradhikaran, Pimpri Chinchwad Pune. in sector 21/11/10. th legal assignment of agreement is done before registar after the owner KKC applied for the NOC to Society but society refused to give the NOC because of their personal benifits. what are the rules of NOC of Pradhikaran Societis Flats.
    Please Guide me and reply.

  • Satish wrote on 6 October, 2010, 12:49

    Dear Prafulla Patil

    Dear Mr.Patil
    No need to wo’ry,I hope you must have gone through the article published herewith which is self explanatory.
    You should follow the steps as follows.

    1)Take copy of application submitted by KKC to sociey and take aknowledgement of the recipt (society aknowledgement)
    2)Submite your application for membership with required document and fees (dont give cash pay by cheque or D.D.)
    3)WAIT FOR 30 DAYS
    4)if society not provide NOC and membership then issue a reminder with legal notice with sitation of supreemcourt/mumbi high court judgment
    5)marck a copy of your above letter to REGISTRAR CO-OPERATIVE SOCIETY OF YOUR DISTRICT.
    6)PROCEED FOR REGISTRY OF PROPERTY/SALE/TRANSFER/ETC.

    YOUR LEGAL RIGHTS REMAIN PROTECTED

    all the besh

  • Shishir Dhawade wrote on 16 October, 2010, 18:49

    Sir ,
    I purchased a plot in Pune .The chairman gave me his N.O.C. FOR PURCHASE.The chairman went to Canada after that.The new chairman does not agrre with his n.o.c. .NOW SOCIETY IS NOT GIVING ME MEMBERSHIP.Your advise has given me a lot of relief…
    Shishir

  • M. D'Souza wrote on 15 November, 2010, 13:58

    What is the time limit for the society to issue the NOC, is it 7 days ? Or even for giving a reply ?

  • narayan wrote on 15 November, 2010, 14:08

    What to do if society does not respond to a request for NOC ?

  • s.banavali wrote on 1 December, 2010, 16:26

    thank you very much for the information. since our society chairman in harassing us. also i am a lonley aged woman,and this information has been very helpful for me.thank you

  • Suhas Sanadi wrote on 8 January, 2011, 14:56

    much obliged for a very informative article,

    At times, some procedure is followed, as considering the provisions of law, when the law is altogether different. As revealed by the present article on the issue of NOC of society for transfer of Flat.

    Suhas Sanadi. Pune.

  • Suhas Sanadi wrote on 8 January, 2011, 15:14

    Respected Sushil,

    The Society NOC in respect of the Bank loan is regarding the no dues of maintenance charges and permission to mortgage. If the society doesn’t issue NOC for bank loan, there is legal remedy against the society, by way of recourse to the Registrar, Co-operative Society. also refer the steps rendered by Mr. Satish in reference to query of Mr, Prafull Patil.

  • M K jain wrote on 4 February, 2011, 18:16

    Respected sir,
    I have purchased a plot at Indore – MP through a broker from one of the member of Co-operative Housing Society (Reg) at Indore. I have paid full consideration by cheque to the seller and sale deed has been duly registered in my name. The seller has submitted no dues from the society. When I applied to the president of the co-operative society, he told that since the seller has not obtained NOC for sale of the plot, the transaction is illegal. He says that it is mentioned in original sale deed that (1) The original buyer can not transfer the plot without prior written permission from society during 10 years (however 10 years have already completed in 2008) (2) The society shall have 1st right to purchase the plot (3) and there is restriction foreever that plot will not be sold to non member, however society can allow any person to become member if he promise to follow the rules of the society.

    Now president (Builder) is neither giving NOC for sale nor he is allowing me as member. However in order to clear the issue, he has desired to offer cash of Rs. 1.50 Lacs, for which no receipt will be issued.

    He says that he has power to cancel the sale deed and transfer the plot in favour of the society.

    Please advise – what should i do.

    M K Jain
    Gandhidham

  • Ajit Shinde wrote on 7 April, 2011, 17:20

    I have purchased the flat from my Real Brother and registration is done to kalyan register office but flat is not transfered by kalyan MIDC. now i want to return the same flat to my Brother.pls.let me know the society NOC is compulsory.

  • SANDEEP SHINDE wrote on 14 April, 2011, 11:29

    Actor Emraan Hashmi, who was refused an NOC to buy a flat in Nibbana housing society at Pali Hill allegedly because he was a Muslim, has one more quarter to turn to for help. The model bye-laws framed by the state government under the Maharashtra Cooperative Societies Act hold that a person does not require a no objection certificate (NOC) from the society at the time of transfer of a flat.

    “Bye-law No 38 prescribes a list of documents required for selling a flat, but nowhere is it mentioned that the society’s NOC is mandatory,’’ says advocate Vinod Sampat. “This being the case, there is absolutely no question of needing an NOC in the present case.’’ Sampat also cites a Supreme Court case (Sanwarmal Kejriwal v/s Vishwa Cooperative Housing Society, Churchgate) where the court had ruled that a society could not bar the admission of a member if he met with the qualifications laid down under the bye-laws.

    Divisional joint registrar of cooperative societies, Mumbai, M P Kalyankar, agrees with Sampat. “The model bye-laws of March, 2001, are clear that an NOC is not required from a society,’’ he says. He adds, “The 2009 model bye-laws, which will be issued soon, do not contain any such clause either. Apart from this, Section 23 of the Maharashtra Cooperative Societies Act clearly emphasises the concept of open membership, where there is no scope for discrimination.’’

    Kalyankar also cites a Bombay high court judgment of 2000 where Justice D Y Chandrachud rejected the contention of St Anthony Cooperative Housing Society which had amended its byelaws to restrict membership only to Catholics. “The judge had clearly stated that the law was in favour of open membership,’’ he states.

    THE LAW SAYS

    Bye-law No 38 under the Maharashtra Cooperative Societies Act does not list an NOC from the housing society among the documents required to sell a flat. A society that refuses an NOC must give its reasons in writing.
    Section 23 of the Act emphasises open membership and nondiscrimination. A Bombay high court judgment in 2000 rejected the contention of a society that amended its bye-laws to restrict membership to Catholics.
    In another case, the Supreme Court ruled that a Churchgate society could not bar the admission of a member who met with qualifications laid down under the bye-laws.
    ‘Hsg societies must adopt 2001 bye-laws’

    Mumbai: Advocates weighing in on the alleged discrimination against actor Emran Hashmi by Nibbana housing society in Bandra say some laws may be in his favour, and that a no-objection certificate (NOC) from the society is not mandatory for the sale of a flat.

    Advocate D S Wader, former chairman of the Mumbai Housing Federation, says that a society which has not adopted the 2001 model bye-laws can continue to be guided by the old byelaws under which an NOC was needed. Divisional joint registrar of cooperative societies, Mumbai, M P Kalyankar is categorical that all societies are expected to adopt the 2001 model bye-laws. “If at all a transferor or transferee of a flat want an NOC from the society for their personal reasons, the society will have to issue it within a month of receiving the application,’’ says Kalyankar. Adds Wader, “If a society refuses an NOC, the law requires it to give its reasons in writing.’’

    When contacted, J P Chhetri, secretary of the Nibbana housing society, told that he was unaware which bye-laws had been adopted by his society.

  • Adv. laxminarayan wrote on 19 April, 2011, 16:04

    ask society in writting and make statement that u are willing to pay necessary charges for issuing such NOC and even after if they fail then approch registrar of eth Society witrh all papers your problem will be solved.

  • pran wrote on 25 April, 2011, 0:31

    What is membership fee in a cooperative housing society and what is the maximum amount that can be charged from an individual who buys a flat from another an existing member of the society

  • SURESH CHAVAN wrote on 18 May, 2011, 15:18

    i have want to purchase the flat in mulund-mhada colony,but opposite party take share certificate from society on.25/4/2011 so society could not give me NOC they said me wait for NOC three months, after three months we give NOC,because we give share certificate on 25/4/11so they said wait at least three months, i does not know any bye laws, any rule,what type of letter issued to society for NOC please guide me as early as possible

  • saeed Gadwal wrote on 22 August, 2011, 8:44

    even i have a same problem can u suggest me about the prolem

  • Swadesh wrote on 19 November, 2011, 21:59

    Sir, i m residing in titwala ,dist -thane , i have buyed a resale flat in my building, i jst wanted 2 ask wheather i will have to take noc from the society for further use of noc in bank for aplying housing loan & for flat registration, if yes then what is the amount i have to pay to society as per maharashtra co-operative society act. I have heard dat i wil have 2 pay 1% amount of flat value to society.

  • admin wrote on 20 November, 2011, 6:51

    For Applying Housing Loan you have to take NOC in the format in which Bank asks. Society do not charge any money for issue of NOC

  • Abhay Viragi wrote on 29 November, 2011, 17:55

    Can society restrict the sale of flat? All dues are paid and there are no other complications.

    Can society deny transfer of Shares after the flat is purchased (all dues are paid).

  • Sujit shah wrote on 11 January, 2012, 13:06

    I have taken cc facilities from bank and its require noc from society in bank format but socirty members are delaying stating reason as election are held in society after that we can decide what should i do 

  • amit wrote on 13 January, 2012, 19:44

    I have a shop which i want to give it on rent for fast food joint, do I require NOC from society, what if the society does not give NOC, as they have a police of not giving NOC for fast food…for no particular reason, pls advice

  • Salim wrote on 28 February, 2012, 10:13

    i have sold my flat, the buyer wants to buy the flat on loan for which the bank requires noc as per bank’s format, the society is not ready to issue me the noc as they say the society is dissolved please advise whom to approach in this case.

  • Dattatray wrote on 14 May, 2012, 14:54

    How much society can charge for NOC? Any Society law avile.
    My society ask 50000 howerver as per information society can cahge maximum 50000 Rs.
    Plaese confirm

  • Dattatray wrote on 14 May, 2012, 14:55

    How much society can charge for NOC? Any Society law avile.
    My society ask 50000 howerver as per information society can cahge maximum 25000 Rs.
    Plaese confirm

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