Mumbai Housing Society Queries: 'Apex Society Can Impose 10% NOC For No Occupancy,' Says Expert

One of our society members gifted his flat to his youngest son, who unfortunately passed away within a month of the transfer. The managing committee then transferred the flat to the son’s wife based on her application. Now, the father claims he had inserted a clause in his will requiring the son to pay Rs25 lakh each to his brother and sister. However, no such clause exists in the registered gift deed. The father has informed us that he is moving court to revoke the gift. What should be our stand as the managing committee? P K Rane, Kandivali

The society acted correctly in transferring the flat to the son based on a registered gift deed. A will only takes effect upon the death of the testator and has no legal standing while the person is alive. Therefore, any clause in the father’s will related to the son paying his siblings has no bearing on the gift deed. However, upon the son’s death, the flat should have ideally been transferred to his legal heirs.

In this case, the society transferred the flat to the son’s wife without any nomination in her favour or documentation such as a succession certificate or probate, as required under Section 154B-24 of the Maharashtra Cooperative Societies (MCS) Act. This transfer may need justification if challenged. In the event of litigation, the society must await and comply with the court’s final order. The father's chances of revoking a legally executed gift deed on such grounds may be slim.

We are a 32-member society forming part of a larger complex with 33 buildings, each having its own managing committee. The apex society handles broader services like roads, gardens, and security. Each flat pays a monthly share toward these services. Our society also levies a 10% non-occupancy charge (NOC) on our own service charges. Can we also levy NOC on the apex society’s charges? Manisha Arora, Ghatkopar

Bye-law 66 of the model bye-laws outlines the components of service charges, which include contributions toward the apex society or housing federation. Your society collects these on behalf of the apex body. If a member does not occupy their flat, the society can charge 10% NOC on its own service charges. However, applying this 10% on apex society charges would only be valid if the apex society’s general body specifically decides and documents that such a levy is permitted. In absence of such a resolution, your society should restrict the NOC levy to your own service charges.

Our building is undergoing redevelopment. I have agreed to purchase an additional area from the developer. He is now asking for 30% of the cost at the time of signing the Permanent Alternate Accommodation Agreement (PAAA). Is this permissible? Saurabh Singh, Sion

In redevelopment projects, the developer typically allows members to purchase up to 10% additional area over their entitlement. The terms of payment should be laid out in the society-approved redevelopment proposal. If you’re buying more than the approved limit, it becomes a separate negotiation between you and the developer. Importantly, under RERA regulations, the developer cannot demand more than 10% of the agreement value before executing and registering the agreement. So, a 30% advance at the time of PAAA signing would be legally incorrect unless the agreement is being registered simultaneously. To protect your interests, ensure all payments and terms are clearly recorded in a registered agreement.

The questions are answered by Sharmila Ranade, a legal expert associated with Mumbai Grahak Panchayat. The questions, in brief, may be sent to fpjchs@gmail.com

Published on: Monday, July 28, 2025, 10:23 AM IST