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? I have been reading conflicting things online and I would like to understand what Indian law actually says about this, which Act and Section applies, what the realistic timelines and costs are, and what I should be doing right now to protect my position. If the matter can be resolved without litigation I would prefer that route, but I want to know what my rights are before I agree to anything or sign any document.

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). The short answer is set out below, followed by the practical steps most people in this situation need to take. Read it alongside the specific provisions named, because the exact relief available to you turns on the facts you can prove on paper.

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 the other side has already issued a notice, filed a case or set a deadline, treat the matter as time-sensitive — most remedies under State Cooperative Societies Act, transfer provisions (e.g. Maharashtra Cooperative Societies Act 1960, Section 29) carry limitation periods, and a delay you cannot explain weakens an otherwise strong case. 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 this practice area.