This is my response to you:
1. Is the society formed or the verge of being formed?
2. Ask for the conveyancing if done or no;
3. If the society does not exist, and you wish to resell the flat then the NOC of builder cannot be demanded as per the circular issued by the state government;
4. If the demand is still there, then it violates the Transfer of Property Act, 1882; which states that ‘a transfer of property, passes forthwith to the transferee, all the interest which the transferor is then capable of passing in the property and in the legal incidents thereof’. According to the Act, the owner alone holds the full right to property and the builder has no right, title or interest over the property post registration of the property in the name of the owner;
5. It violates the Indian Contract Act, 1872. It is an extra contractual demand made by the builder on the buyer, which infringes the buyer’s ownership rights;
6. The builders threaten that upon non-payment of transfer charges, the buyer would not be able to sell off the flat. This is a punishable offence under Section 384 and 385 of Indian Penal Code (IPC);
7. The undue influence exerted by the builder is prohibited by Competition Act, 2007. Imposition of unlawful transfer fees by builders is deemed ‘abuse of dominant position’ as defined under section 4 of the Act;
8. You can also lodge a complaint to the consumer court;
9. Consult a local lawyer and take steps.