Mumbai Housing Society Queries: Redevelopment Details Can Be Omitted From NOC Before DA Signing

Q. Our society has passed a resolution approving redevelopment in the special general body meeting (SGM) and the project management consultant (PMC) has been shortlisted. One of the members is in the process of selling his flat and the purchaser is availing a home loan. The financing bank has requested an NOC from the society. The purchaser is insisting that the society issue the NOC without mentioning the proposed redevelopment. Would omission of such information result in any legal or financial implications for the society or managing committee. What would be the appropriate wording/ content of the NOC? – Pratibha Singh, Chembur

A. Passing the resolution in the SGM with the required quorum is the first step for redevelopment followed by the PMC's appointment and issuance of tender seeking quotations from interested Developers. This process may take considerable time.

Subsequently, you will have to convene a meeting to shortlist developers and choose one of them in the SGM where the representative from the registrar's office is present in accordance with section 79A guidelines under the Maharashtra Co-operative Societies (MCS) Act.

Your society has just initiated the process and is required to go a long way. The two-third quorum requirement, consent of minimum 51% members as mentioned in the GR dated July 4 is required to be followed. To consider the purchaser's request, let us understand when the society should mention about the redevelopment in the NOC.

If the Society has appointed the developer following the 7A process, it can mention the same in the NOC as the redevelopment process is in the advanced stage and moving towards signing the development agreement (DA).

Signing of the DA creates statutory and contractual rights and obligations – both on the society and developer – which are enforceable in law. In such an event, the society must mention about the ongoing redevelopment in the NOC along with the clause that the purchaser will be obligated to abide by the DA terms though he was not a party to the decisionmaking. The rights and obligations will be passed along with the sale of the flat.

In view of the above, please note that your society is at a premature stage of redevelopment. Therefore, it doesn't need to mention about the redevelopment in the NOC.

The society is required to disclose the redevelopment when the rights and obligations have been created by way of signing the DA, which the financing bank is entitled to know before granting/disbursing the loan. The bank has its own due diligence process for verification and inspection.

The society should cooperate with by granting the required NOC. As regards the wording, most financing banks have their own format which is provided to the society by the purchaser.

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

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Published on: Monday, May 25, 2026, 09:20 AM IST