Q.1.What is the limit of expenditure to be incurred by the Managing Committee on the maintenance and repairs of the Society? Is it dependent on the total number of Members in the Society?
Dhimant Saini, Borivali
Ans. The Managing Committee is responsible for maintaining the Society and carrying out the necessary repairs to the property of the Society. The limit depends upon the number of Members in the Society. The Managing Committee is allowed to incur expenditure on the repairs and maintenance of the property of the Society once in a financial year provided one time expenditure does not exceed Rs. 1,00,000 for Societies having upto 25 Members, Rs. 2,00,000 for Societies having 26-50 Members, Rs. 3,00,000 for Societies having 51-100 Members, Rs. 4,00,000 for Societies having 101-1000 Members and for Societies have 1001or more Members the limit is Rs.5,00,000, in accordance with Rule 106C-13(5) of the recently amended MCS Rules.
The Bye Laws provide for 3 slabs and lower limits. For Societies up to 25 Members the amount is upto Rs. 25000, for Societies having 26-51 Members the limit is upto Rs.50,000 while for Societies have 51 and above the limit is up to Rs. 1,00,000. The Rules will prevail over the Bye Laws as they become applicable to all Societies once notified.
Q.2. I requested for NOC and No Dues Certificate from the Society as I have decided to sell my flat and also identified a buyer. the Secretary informed me that they will interview the buyer and then decide upon my request. I am surprised to know that the buyer will be interviewed, which was never heard of. is this in accordance with the MCS Act, Rules and Bye Laws?
Anupa Sheth, Bhandup
Ans. I completely understand why you are surprised—hearing that a housing society wants to "interview" your buyer. The short answer is no, this is absolutely not mandated. The Secretary is overstepping their boundaries.
Under the Maharashtra Co-operative Societies (MCS) Act and the Housing Society Bye-laws, the Managing Committee has zero legal authority to interview, screen, or profile a prospective buyer. In fact, legally speaking, you don't even need an NOC from the society to sell your flat. Neither the MCS Act nor the society's Bye Laws give the Committee the right to vet a buyer based on an interview. They cannot judge a buyer's lifestyle, religion, food habits, or background. According to Model Bye-law No. 38, a flat owner only needs to give the Society a 15-day written notice before selling. Society cannot stop you from registering your Sale Agreement. The Society can only raise an objection if you have unpaid maintenance dues or if there is an ongoing legal dispute over the flat. They cannot reject a buyer based on personal preferences.
You may write a polite but firm letter or email to the Secretary. Ask them to give you the exact Bye-law number or section of the MCS Act that says a buyer must be interviewed and also ask the reason for such an interview.Make sure your maintenance bills are fully paid up. If your account shows zero outstanding balance, they cannot legally refuse to give you a "No Dues Certificate." If the Committee refuses to clear your paperwork or continues to insist on an interview, you can file a formal complaint with the Deputy Registrar (DDR) of Co-operative Societies for unfair harassment.
Of late some Societies have started doing this in the interest of the Residents of the Society. It may be a good practice considering the media reports of anti-social elements occupying flats for performing illegal activities. However, the Managing Committee cannot unilaterally take such decisions without the approval of the General Body. The General Body needs to pass a resolution to this effect which should be implemented subsequently. Please check whether your Society has had any bitter experience in the past which risked the life and property of the Members of the Society, whether such an incident was recorded and reported to the General Body and any preventive action was decided to be taken. Please ask for the resolution of the General Body which decided to interview prospective buyers, if any.
To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/
