The society won’t give an NOC or transfer the flat: what now?
A sale, a home loan or a transfer of membership can stall for months because the committee will not issue a letter or decide an application. The Act now sets time limits, and the Registrar can step in.
The short answer
- An application for a certificate or NOC to sell, mortgage or for any other purpose must be decided within 30 days and the decision communicated within 15 days. If not, or if it is refused, the member can appeal to the Registrar (Section 154B-27(3)).
- A buyer’s membership application must be decided within three months; if the society does not communicate a decision in that time, the buyer is a deemed member (Section 22(2)).
- A refusal of membership can be appealed to the Registrar within 60 days; if the society will not even accept the application, it can be routed through the Registrar (Section 23).
- The society can insist on its dues being cleared and a transfer premium within the Government’s cap, but not on donations, unauthorised conditions or unrelated disputes.
Two different things: the NOC and the transfer
People use “NOC” loosely for two separate steps. The first is a certificate or no-objection letter a member asks for while he still owns the flat — to sell it, mortgage it to a bank, let it out or carry out repairs. The second is the transfer of membership to the buyer after the sale, when the buyer applies to be admitted as a member and the share certificate is endorsed in his name. Each has its own rules.
The NOC: 30 days, then the Registrar
Section 154B-27(3) of the Maharashtra Co-operative Societies Act, added in 2019 for housing societies, is direct: an application by a member for a certificate for the sale of his flat, for mortgaging it to obtain a loan, or for any other purpose must be decided by the society within 30 days of receipt, and the decision intimated to him within 15 days. If the society does not decide in time, or rejects the application, the member may appeal to the Registrar within three months of submitting the application, or within two months of the rejection, whichever is earlier. The Registrar must dispose of the appeal within 60 days after hearing the parties.
The Commissioner for Co-operation’s circular of 1 January 2017 sets out the procedure in more detail: apply in writing stating the purpose; the committee decides at its next meeting; in urgent cases the chairman and secretary jointly issue the NOC within 7 days; the society should use the model format, or the lender’s format where a bank asks for one. Under the model bye-laws, no society NOC is even needed for a loan from a bank or employer to buy a flat — but the society must give one if asked.
The transfer of membership: three months, then deemed membership
After a sale, the buyer applies to the society for membership, with the registered transfer document (Section 154B-12) and the documents the bye-laws require. Under Section 154B-7, a transfer becomes effective once the society’s dues have been paid and the buyer applies for and is admitted to membership.
- Time limit. The society must communicate its decision within three months of receiving the application; a refusal must be communicated with reasons within 15 days of the decision. If no decision is communicated within three months, the applicant is deemed to have been admitted as a member (Section 22(2)).
- Society won’t accept the application. If the society refuses even to accept the application or the fee, the buyer can submit it through the Registrar, who forwards it; if the society does not decide within 60 days, the buyer is a deemed member (Section 23(1A)).
- Refusal. A society cannot refuse membership to a qualified person without sufficient cause (Section 23(1)). A refusal can be appealed to the Registrar within 60 days (Section 23(2)).
What the society can ask for — and what it can’t
| The society can | The society cannot |
|---|---|
| Insist that its dues on the flat are cleared; it has a charge on the share and interest for them (Section 154B-14) | Refuse because the flat has alterations or alleged unauthorised construction — that is a civil question (Videocon, Parijat) |
| Charge a transfer premium fixed by the general body, within the Government’s cap — ₹25,000 in municipal corporation areas, less elsewhere (GR of 09.08.2001) | Demand a “donation”, “development fund” or any amount above the cap as a condition of transfer |
| Ask for the documents and forms the bye-laws prescribe | Insist on a MHADA NOC where MHADA has already conveyed the land to the society (Bombay HC, 2023) |
| Keep the flat holder to the bye-laws on use, letting and non-occupancy charges | Hold up the transfer over an unrelated dispute with the seller, or decide who owns the flat between rival claimants |
What to do, step by step
- Apply in writing, stating the purpose (sale, loan, letting, repairs) or, for a transfer, using the society’s membership form with all documents. Get an acknowledgement; if the society will not accept it, send it by registered post A/D or speed post.
- Clear the dues on the flat, or tender them with the application, and keep the receipt.
- Diarise the deadlines: 30 days for an NOC; three months for a membership decision.
- Write a reminder before the deadline expires, quoting the section. Many committees act once they see the time limit in writing.
- Appeal to the Registrar if the deadline passes or the society refuses: under Section 154B-27(3) for an NOC, under Section 23(2) against a refusal of membership, or ask the Registrar to declare deemed membership. Committee members who ignore statutory duties also risk action under Section 154B-27 and disqualification.
Related on this site
This post is general information, not legal advice. Bye-law numbers refer to the 2014 model bye-laws; check your society’s registered bye-laws. Every case turns on its own facts.
Have a question about your society?
Write to the office with a brief description of the matter. Meetings are by prior appointment.