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Rajendra Kumar (self employed)     22 February 2010

NOC by CHS in Mumbai

A CHS in Mumbai is charging a fixed amount of NOC in the monthly maintenance bill of a Flat Owner in case of Flat is given on L & L basis. This amount is much more than the 10% of service charges excluding Municipal Taxes. After several request to the secretary/Chairman of the Society they have not reversed these charges. On account of this dispute with the society the Secretary of the Society has refused to accept any letter from the flat owner. Since they have refused acceptance of letter written to them later they may charge the member for non-submission of letter/reply. Now what remedial action is available to the members. Pl. explain the following.

1. What action can be taken against the Secretary/Chairman of the Society.

2. What will be the position if the same letter is submitted to the Dy. Registrar of the society with the remark that Secretary has refused to accept the letter.

3. Can the member make payment of monthly maintenance charges after deducting the excess NOC charged in the Bill.

4. Can a member recover the excess NOC charges paid to the society.

5. Since the society is in habit of charging excess NOC to other members also, can they say that we are charging to others also so you can not be the exception to it.

6. Can the Managing Committee be charged for mis management and torture to the member for not acepting the letter sent to them.

7. How to deal with the society under these circumstances.

8. What is the best action to be taken against the Managing Committee sothat they will not repeate the same in future. (Permanent Action)



 8 Replies

V. VASUDEVAN (LEGAL COUNSEL)     22 February 2010

1. Write a detailed complaint to the Registrar of Society with a statement of account.

2. Also write a letter by registered speed post to the Secretary/Managing Committee, demanding to  explain the details and the basis of calculation of the NOC. Say that in case you do not receive their reply with complete statement will have no option but to presume that your calculation is correct and on the basis prepare statement of NOC payable vis a vis paid. Any dues payable is a running account and hence you can start adjusting the excess once the above process is done. 

3. Are all other other members paying the NOC as fixed by the committee. It would be ideal to have a consensus between all aggrieved members so that the action taken brings positive results.


Anil Agrawal (Retired)     22 February 2010

Send a copy of this news item to the Society by Registered Post A.D. with copy to Dy. Registrar of your Ward.


10 % it is, says The Supreme Court. Non-occupancy charges.



Apex courts ruling will definitely help to curb the unwarranted NOC’s levied on the owners by the CHS and release vacant flats in the city for being rented, says…



House owners who have let their flats out on rent and those who are contemplating to rent out will now breath a sigh of relief with the latest Supreme Court order upholding the Mumbai high court order on Co-operative Housing Societies (CHS) of not charging more than 10 % of the society’s service charges, excluding the Municipal taxes. The apex Court recently passed a judgement on the controversial issue of non-occupancy charges, which upheld the state governments circular fixing the ceiling charges at 10 percent of maintenance dues.


State Government’s Issue on NOC regulations in 2001, which fixed the ceiling on NOC at 10 percent of the maintenance charges, was challenged recently on 2/3/07, when Mount Blanc CHS at Peddar road filed a special leave petition (SLP no. 7964, 7965, 7966) and demanded interim relief and autonomous authority to decide upon the non-occupancy charges. This petition was called for hearing on 19th June; wherein the Supreme Court upheld the High court ruling but provided interim relief to Mount Blanc to charge 10 % of the rent recovered by the owner as NOC and not 10 % of the maintenance charges.


Earlier, the non-occupancy charges were not regulated and it fluctuated according to the whims and wishes of the societies. Many CHS charged exorbitantly and minted money on it making huge profits. To put a check on it, this ruling will definitely help.


Mr. Alwyn D’souza, Secretary, Alpine Heights, co-operative Housing Society at Baner argued, “For middle class societies wherein the maintenance charges are around 500 Rs per month, a 10 % of it amounts to mere 50 rupees, which is unfair, since the sub-tenants also utilize the same amenities as the society members. Also they claimed that flat owner charged exorbitant rates from the sub tenants and would be paying peanuts to the CHS as per the new law.”


The apex court defended its decision and justified that the disconnect in this argument is that, the sub tenant is in no way dealing directly with the society. The owner of the flat and the CHS thereof settles all the matter concerned. The owner pays the maintenance charges for the flat per se and the sub tenant pays his dues to the owner. So the society is rightly reimbursed for the services provided to the occupant, i.e. the sub tenant. What the flat owner receives as rent is not concerned with the CHS at all.


Mr. Lalit Kumar Jain, Chairman, Promoters and Builders Association of Pune (PBAP) and also the Chairman of Kumar Builders, says, “It is important for societies to know who is coming to stay more then the monetary aspects. In fact by charging more they may be compromising on quality of person coming in the premises. Also the exorbitant charge does not have any logic. Prior to this, (CHS) were charging exorbitant non-occupancy charges (NOC) to the owners, which ultimately reflected in the high rentals and burdening the end user. This also led to many non-occupied vacant flats not being rented for the high NOC's.
This SC ruling will help to curb exorbitant NOC and facilitate the consumer.”


The maintenance charges are funds raised by the society members for maintaining common amenities like elevators, garden, cleaning etc. The flat owner, even if letting out the flat on rent has to pay the maintenance charges and a further NOC for non-occupancy and renting. So the non-occupancy charge is a surplus besides maintenance charge that the society benefits from. Hence the CHS are at no loss.


“Mr. Rohit Gera, Executive Director of Gera Developments Pvt. Limited, says, “Why do the CHS want to put their hands in some one else’s pockets? Why do they want to have a share in some body else’s fortune? If a person, owner is making profit of from his own property, why do the CHS want to have a share in it. It is absolutely irrelevant what does the owner charge as rent as the services which are being provided are already been paid by the owner in terms of the maintenance charges.”


Thus according to the new law if the society maintenance charges are 1000 Rs. Per month, the non occupant flat owner who has rented out his flat, will have to pay a total charge of 1100 Rs, which includes 100 Rs (10 % of 1000) as non occupancy charges, plus 1000 Rs. as the maintenance charges.


If the society levies exorbitant non-occupancy charges then the direct effect of the same will burden the sub tenant ultimately.  If the owner has to pay more NOC, he will definitely reimburse it by charging exorbitant rent. Currently, lot many non-occupant owners are not renting out their flat owing to the fact of exorbitant non occupancy charges that the CHS charges. Following the ruling many of the non-occupied vacant flats will be released for licensing and rental. Around 65,000 thousand flats are non-occupied in the state and their availability will reduce the crunch for available flats in the city and will also ensure affordable rental prices for the buyers.


suresh baindur (10 laks)     14 August 2011

Very few know tte idea behind C.H.S.Poor or middle class people who were unable to own a house formed

a C.H.S.and contributed money and collectively built a house to stay.The ownership of this house was jointly

shared by every member of the C.H.S.Later on some members without any need to stay invested money only

for  extra income and rented the premises. Now the C.H.S.was added in Bye-Laws of C.H.S.

There are  3 catagortes of N.O.C.s 1) A member does n't stay but keeps his premises locked indefinately

In such cases C.H.S. may charge 10% of service charges since C.H.S. has to take extra care for unforeseen

riisks as fire ,robbery leakage etc when the owner is not staying. 2)A member sublets with C.H.S permission

at standard rent as per C.H.S.'s Bye-Laws In such cases C.H.S. may not demand N.O.C.3) in case a Member

rents out at exhorbitant prices to make high prfits on his investments C.H.S. should have right to charge 10%

of the rent the member gets.Because the member is not a full owner and he is a co-ower in CHS.That means

he should bear his extra profits with other co-owners.This doesn't mean CHS is charging exhorbitant NOC

In fact the member is charging rent to take advantage of shortage of accommodations It is wrong to say that

CHS is makinga lot of profit by N.O.C. 10% of profit made bythe member.Since CHS is owned by all the

memmbers and not an individual the money collected can be used for benefit of all the members including

the member who r3ents out.

___Raja___ (x)     10 October 2011

Mr. Suresh,

which bye law are you referring to for the 3 cases? Can you point out the bye law numbers?

suresh baindur (10 laks)     11 October 2011


Most C.H.S. s are charging N.O.C. when a member rents out his premises.

under the C.H.S. Bye-Laws.I am referring to those Bye-Laws

But the 3 catagories I mentioned may not be in those Bye-Laws

If you consider the practical aspects in reality the 3 types of N.O.Cs are

logically true.


DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE )     11 October 2011

Society as a rule can not permit lease , it is the courtsey of all members. So donot agitate otherwise your membership may be cancelled and you will have to face music of legal system even though the property is yours.

sachin (Sr Engineer)     29 May 2012

Hi Rajendra

I am facing some what same problem what you have mentioned. please tell me what action tou have teken and what was the results. So that i can proceed . Awating your feedback

Anil Agrawal (Retired)     29 May 2012

Only non occupancy charge is allowed to be charged, now even if you keep a paying guest. But we allow ourselves to be ruled by dumb fools and pay the price for being passive and ignorant.

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