you purchased flat from builder?
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NOC charges on registration of flat purchased 13 years back
Hi, I had purchased a flat in a Cooperative Society in Greater Noida, Uttar Pradesh, more than 13 years back. The Society got a completion certificate about 4 years back after which registrations of the flat became possible. Due to some reasons I was not able to get registration done earlier and am getting it done now. The Society is now asking me to pay 1% of the circle rate of the flat as NOC charges, even though I am not selling the flat or transferring it to a third party (the registration is being done in my own name only). Is this 1% charge payable? Thanks in advance for your help.
Asked 5 years ago in Property Law
Religion: Hindu
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9 Answers
Every association is governed by a set of Bye Laws. If you are a member of that society, you have every right to grab a copy of the same and check if there is a clause to that effect.
1. What do the byelaws of the society say in this regard?
2. 1% of the circle rate as NOC charges is usurious and arbitrary. This can be challenged in the court.
Dear Client,
Society can charge a maximum of Rs. 25000 for NOC in case resale of flat. And in your case it`s not applicable. Demand illegal, complain to registrar or avoid.
Just to clarify. The flat is an original allotment to me by the co-operative society. For the 1% charges payable on registration, the society is quoting the Uttar Pradesh Apartments Act 2007 (http://adaallahabad.in/documents/UPApartmentAct07-Revised.pdf) - which states: "Provided that where the allotment, sale or other transfer of any apartment has been made by any group housing co-operative society or association in favour of any member thereof, the transferability of such apartment and all other matters shall be regulated by the law, which may provide a transfer fee at a maximum rate of 2 percent but not less than 1 percent in any case of the sale value, applicable to such group housing co-operative society or association whosoever maintains the common areas and facilities. The transfer fee shall not be leviable in case of heritability." The above language says that charges are payable on "allotment" (sale and transfer do not apply to me), but in my case the allotment happened 13 years back - so the charges must have been recovered at that time (I don't have detailed breakup of the payment made by me to the Society at that time - so don't know specifically if the charges on allotment were recovered from me at that time). Now when an already allotted flat is being registered, no fresh 1% charges on circle rate, should logically apply. I am also being charged Rs 11000 separately to facilitate the registration process. Please specifically let me know, that as per the Uttar Pradesh Apartments Act 2007, whether this 1% of circle rate is payable on registration (on an already originally allotted flat) and whether there is any capping on the maximum amount payable.
Asked 5 years ago
in case of flat allotted to you on transfer of flat by sale or gift etc transfer fees of 1 per cent is leviable .
it is not applicable to you
1% is not payable
even assuming that it is payable, that 1% should be on the sale value of flat as on the date of allotment 13 years back and not on the present market or circle value
however, even otherwise the society cannot charge you the transfer fee on allotment because the allotment was done in 2005 and the act which they are citing is of 2007 (unless of course if the act has a restrospective application i.e. applicable even for allotments done prior to coming into force of the act in 2007)
additionally the society ought to have levied the transfer fee at the time of allotment and it cannot now claim fresh transfer fee just because the registration is happening now. The society is barred by law of limitation which gives a maximum period of 3 years to assert its rights under law. That period ended in 2008 i.e. 3 years after the allotment was done to you in 2005. So society cannot ask transfer fee from member today, as it is barred by limitation law
the society's demand is illegal
1. The Society's demand is illegal and unauthorised and is akin to Cheating and Extortion.
2. File grievance petition before the local Consumer Court, against the Society and claim damages and compensation. This will bring the society on to their knees.
Keep Smiling .... Hemant Agarwal
Since the proeprty is being registered to yor name and you are the purchaser, you need not pay any charges for obtaining NOC.
If the society is demanding the same ask them to give it in writing, you may drag them to court for this illegal extortion.
The society is referring to the latest act implemented in the year 2007, whereas you have purchased the flat 13 years before hence there were no such law governing this issue, however you may fight it out on that basis and also may take up that the rates applicable at that time may be paid, if they dont agree, then you may drag them to consumer forum ,let the court decide on this.