Can a housing society refuse to grant a No Objection Certificate for transfer of a flat?

Question

I have sold my flat and paid all my dues, but the society is delaying or refusing to give a No Objection Certificate for the transfer. Can they do this? Specifically, I want to know how State Cooperative Societies Act, transfer provisions (e.g. Maharashtra Cooperative Societies Act 1960, Section 29) applies to a situation like mine and what the property law position in India actually is. If there is a deadline I should be aware of, I need to know that now.

MyVakeel Legal Desk · Accepted Answer

Can a housing society refuse to grant a No Objection Certificate for transfer of a flat? is governed in India primarily by State Cooperative Societies Act, transfer provisions (e.g. Maharashtra Cooperative Societies Act 1960, Section 29), Model Bye-laws for Cooperative Housing Societies, Bye-law 38 and Maharashtra Ownership Flats Act 1963, Section 4 (or equivalent state Apartment Ownership Act). Outcomes in society transfer noc disputes depend heavily on documentation, so check what you can actually evidence as you read.

Under Section 29 of the Maharashtra Cooperative Societies Act 1960 and equivalent provisions elsewhere, a share-holding member can transfer their shares and interest in the flat subject to the society's bye-laws, but the society cannot arbitrarily refuse to record a valid transfer once dues are cleared and the transfer procedure under the bye-laws is followed.

Bye-law 38 of the model bye-laws for cooperative housing societies typically requires the outgoing and incoming members to submit a transfer application, transfer fee, premium (where applicable within permissible limits) and the sale documents, after which the society's managing committee must place the matter before the general body for approval within a prescribed time.

A society charging a transfer premium beyond the ceiling fixed by the state's cooperative department, or refusing an NOC despite complete compliance, exceeds its lawful powers and such a refusal can be challenged before the Cooperative Court or Registrar.

The society's No Objection Certificate is an internal administrative requirement for updating its share register and does not itself confer or deny title, since ownership passes through the registered sale deed under the Registration Act 1908, but withholding the NOC can still cause practical difficulties in obtaining society membership and services.

Persistent unjustified delay by a society in processing a transfer can be the subject of a complaint to the Registrar of Cooperative Societies, who has the power to direct the society to comply within a set timeframe.

What to do next: 1) Clear all outstanding society dues and submit the transfer application with the prescribed fee; 2) Follow up in writing if the society delays placing the transfer before the general body; 3) Complain to the Registrar of Cooperative Societies if the NOC is unreasonably withheld; 4) Keep the registered sale deed and dues clearance certificate ready as proof of compliance.

If you are unsure whether your facts fall inside State Cooperative Societies Act, transfer provisions (e.g. Maharashtra Cooperative Societies Act 1960, Section 29), that is worth checking with an advocate before you commit to a route, because switching later costs time. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in property law.