Circular · Commissioner for Co-operation · 01.01.2017
NOC from the society: how members apply and how fast the society must decide
The Commissioner for Co-operation’s circular of 1 January 2017 tells housing societies how to deal with members’ requests for a no-objection certificate — to sell, mortgage, repair or let a flat — and what a member can do if the society sits on the request.
Key points
- The member applies in writing, stating the purpose. If the society will not accept or acknowledge the application, it can be sent by registered post A/D or speed post.
- The society must place the application before the next managing committee meeting and issue the NOC immediately after deciding.
- If a meeting cannot be held soon and the need is urgent, the Chairman and Secretary jointly must issue the NOC within 7 days, with the committee’s approval taken afterwards.
- If the society does not issue the NOC in time, or refuses without sufficient reason, the member can apply to the Registrar, who can direct the society to issue it.
Why the circular was issued
Members of housing and premises societies regularly need a no-objection certificate from the society — to sell a flat or shop, mortgage it, carry out repairs, let it out or make internal changes. The Commissioner noted that members often did not get the NOC in time, that members and societies disagreed about the conditions in it, and that the Registrar’s offices were receiving many complaints. The circular sets out a procedure to deal with this.
What it directs
- Written application. The member must apply to the society in writing, stating why the NOC is needed, and take an acknowledgement. If the society does not accept the application or will not acknowledge it, the member may send it by registered post A/D or speed post.
- Decision at the next committee meeting. The society must place the application before the managing committee meeting held next after it is received, decide it at that meeting, and give the NOC to the member immediately.
- Member’s responsibilities and dues. The member is responsible for complying with whatever the purpose requires. If the member owes the society any dues, they must be paid with the application; the society should recover them and issue the NOC.
- Loans for buying a flat. The model bye-laws provide that no society NOC is needed for a loan from an employer, bank, LIC or similar institution to buy a flat. Even so, if a member asks for one, the society is bound to give it. Where the lender asks for an NOC in its own format, the society should give it in that format, based on the documents available with the society.
- Model format. If the member does not ask for a particular format, the society should use the model NOC format attached to the circular.
- Urgent cases: 7 days. If a committee meeting cannot be held soon and the member needs the NOC urgently, the Chairman and Secretary must jointly issue it within 7 days of receiving the application, and obtain the committee’s approval at its next meeting.
- Remedy before the Registrar. If the society does not decide or issue the NOC within these periods, or refuses without sufficient reason, the member can apply to the Registrar concerned. After hearing all sides, the Registrar will direct the society to issue the NOC.
The model NOC
The circular attaches a one-page model certificate. It records that the society has no objection to the stated purpose — sale, mortgage, letting, repairs and so on — and is signed by the Chairman and Secretary with the society’s seal.
What else is in the typed copy
The 8-page typed copy also contains two other circulars issued by the Commissioner on the same day:
Complying with the Registrar’s directions under Section 79
Societies must file the returns and statements the Act, the Rules and their bye-laws require. Where the Registrar directs a society under Section 79(1) to do so, it must comply within the time given. If it does not, the Registrar can have the work done by an authorised person at the society’s cost, recoverable as arrears of land revenue (Section 79(2)), recover the cost from the officer at fault (Section 79(3)), and treat the default as an offence punishable with a fine of up to ₹5,000 (Sections 146 and 147).
Membership for buyers of new flats after redevelopment
Some societies delayed or refused membership to people who bought the new flats and shops created by redevelopment. The circular reminds societies of open membership under Section 23(1) and sets out the position:
| Situation | What follows |
|---|---|
| The society redevelops itself and sells the new flats | It must admit the buyers as members. |
| A developer sells new flats in the same building | The society must admit the buyers as members. |
| The developer builds a separate building for the existing members and sells flats in another new building | The buyers may become members of the existing society, or a separate society of that building can be registered with the approval of the existing society’s general body. |
If the society does not admit an eligible buyer: it must decide a complete application within 3 months (Section 22(2)), failing which the buyer is treated as a deemed member; if it will not even accept the application or the fee, the buyer can apply through the Registrar under Section 23(1A), and the society then has 60 days to decide; any dispute about deemed membership goes to the Registrar under Section 22(2); and a refusal can be appealed to the Registrar within 60 days under Section 23(2).
What it means in practice
For members: apply in writing, state the purpose, keep proof of delivery, and clear any dues with the application. For committees: put every NOC request on the next meeting’s agenda, use the model format unless a lender needs its own, and use the 7-day route for urgent cases. A society that withholds an NOC without sufficient reason can be directed by the Registrar to issue it.
Related: Transfer premium guide · Redevelopment library
Two files: the signed 3-page circular with the model NOC, and an 8-page typed copy that also contains the two related circulars described above. Both are in Marathi. This page summarises the document for general information; it is not a translation and not legal advice. Read the document itself for its exact terms, and check whether it has since been amended or superseded.
Have a question about your society?
Write to the office with a brief description of the matter. Meetings are by prior appointment.