X can sell the site

2) not necessary to have allottment letter 

3) society NOC not required 

4) since plt is in X name for khata transfer society approval is not necessary 

If you have sale deed and earlier chain of documents then it’s not compulsory take a indemnity bond from seller

A) Title & Mr. X’s right to sell

• If the registered exchange deed clearly describes this 30×40 site as being transferred to Mr. X from the society, and the EC shows a clear chain of title in his favour, then Mr. X is the legal owner and can sell the plot.​

• The allotment letter is not a title document; what matters is the registered deed and EC, not the allotment letter.​

B) Society’s role & NOC

• Allotment letter is not legally mandatory for sale; a registered sale deed from Mr. X is what creates your ownership.​

• Society NOC is not a statutory requirement for sale, but it is often asked by banks and BBMP; try to get a simple NOC/confirmation that this site is not allotted to anyone else and they have no objection to the sale.​

C) Khata & tax transfer

• For BBMP khata transfer, the key document is the registered sale deed; allotment letter is not essential, but BBMP may ask for society NOC or confirmation as an additional document.​

• Property tax will follow the khata; once khata is in your name, tax will be in your name.​

Checklist before buying

1. Get a local property lawyer to:

   • Verify that the exchange deed schedule matches your site exactly (site no., survey no., layout).

   • Confirm that the society had clear title to the land and that the exchange deed is absolute and unconditional.

2. Insist that Mr. X:

   • Gets a written NOC/confirmation from the society that this site is not allotted to anyone else and they have no objection to the sale.

   • Provides a clear EC and all previous deeds.

3. For khata:

   • Apply with BBMP using the sale deed; if they ask for society NOC, submit the NOC obtained above.

1.  The EC reflects the Exchange deed and shows X as the absolute owner of that site, hence the clear and marketable title of the X over the site is established. 

2. If there is no restrictive clause in the exchange deed then it would not be mandatory to obtain NOC if the exchange deed already conveys ownership. 

3. It may not be necessary for the confirmation from society for khata transfer , however if the BBMP insists on it since it is a society layout site, you may approach the seller to obtain the same

Based on the facts you have outlined, the legal position can be clarified point-wise to address your concerns.

From a title perspective, an exchange deed is a valid mode of transfer under the Transfer of Property Act, provided it is properly stamped and registered. If the exchange deed clearly identifies the specific 30×40 site (by site number, boundaries, layout plan reference, survey number linkage, etc.) and the Encumbrance Certificate reflects Mr. X as the absolute owner pursuant to that registered exchange deed, then title does vest in Mr. X. In such a case, Mr. X does have the legal right to sell the site, subject to there being no restrictive covenant in the exchange deed or the Society’s bye-laws prohibiting such transfer.

However, because the layout is developed by a Co-operative Housing Society, the analysis does not end with the EC alone.

In layouts formed by co-operative societies, ownership and allotment are often two separate concepts:

• Ownership of land/sites may pass through registered conveyances (sale/exchange deeds), but
• Enjoyment and recognition within the society framework usually flows through allotment and membership.

On your specific questions:

1. Is a Society allotment letter mandatory for a valid sale?
   Legally, an allotment letter is not mandatory if the seller already has a registered title deed (exchange deed here) conveying ownership of a clearly identified site. Courts have consistently held that registered conveyances prevail over internal allotment documents. That said, allotment letters play a crucial role in proving that the Society has earmarked that specific site for that member and that no double allotment exists.
2. If no allotment letter exists, is a Society NOC required?
   While not strictly mandatory under property law, a Society NOC is strongly advisable in your case. Absence of both an allotment letter and a NOC creates a real risk of:

• future disputes regarding duplicate or overlapping allotments,
• objections at the time of khata transfer,
• complications when reselling or seeking bank finance.
  Revenue authorities and banks often insist on a Society NOC to confirm that the Society has no objection to the transfer and that the site forms part of its approved layout.

1. Will khata transfer and property tax registration require Society approval or membership?
   Practically, yes. In Karnataka (and similarly structured states), local bodies frequently require:

• proof of Society membership or transfer endorsement, or
• an NOC / confirmation letter from the Society
  before effecting khata transfer in layouts developed by co-operative societies. Without this, khata transfer can be delayed or rejected.

Key risk area you should not ignore

The absence of both an allotment letter and a Society NOC means you are relying entirely on the exchange deed. While this may be legally defensible, it is procedurally weak and can lead to:

• objections during registration (depending on the Sub-Registrar),
• refusal or delay in khata,
• reluctance from future buyers or lenders.

Prudent safeguards before purchase

Before proceeding, you should insist on:

• A written Society confirmation / NOC stating that the site allotted/exchanged to Mr. X is genuine, unique, and free from claims.
• A copy of the approved layout plan showing the site.
• A clause in the sale deed with strong indemnity protecting you against Society claims, duplicate allotment, or layout irregularities.
• Verification of Society bye-laws to ensure the exchange and resale are permitted.

In summary

• Yes, Mr. X can legally sell if the exchange deed is clear and registered.
• No, an allotment letter is not legally mandatory, but its absence increases risk.
• A Society NOC is not compulsory by statute but is practically essential for safety, khata, and resale.
• Proceeding without Society confirmation exposes you to avoidable future complications.

If you want the purchase to remain litigation-proof and bankable, securing Society documentation before completion is strongly advisable.

1. Though EC indicates X as claimant/transferee, allotment by society to X and membership of society to X is necessary.
2. Any transfer of property without allotment is not valid.
3. Not the approval but membership is necessary for mutations in revenue records.

A) Title Mapping & Ownership: While the Exchange Deed registered in Mr. X's favour and a "clean" Encumbrance Certificate (EC) are positive indicators, they are not conclusive proof of a valid allotment. The EC only shows registered transactions, not the Society's internal compliance. For Mr. X to have a marketable title and the right to sell, the Exchange Deed must be flawless and demonstrably executed by the Society with proper authority. The core risk is that the Society may not recognize this specific plot as legally allotted to Mr. X, potentially leading to claims of duplicate allotment. Therefore, the EC shows a chain, but the foundational link—the Society's official allotment—is missing.

B) Society’s Role & Permissions: In a Cooperative Housing Society layout, the Society is the absolute original owner and allocating authority. An Allotment Letter is the primary document proving the Society granted specific rights to a member/allottee. Its absence is a major red flag. While not a registered document, it is internally mandatory for establishing legitimate membership and plot entitlement. An NOC (No Objection Certificate) from the Society is typically a prerequisite for any subsequent sale. It confirms all dues are cleared, the transfer is approved, and there are no prior claims. Without it, the Society can challenge the sale later. Regarding Katha transfer and tax registration, municipal authorities will almost certainly require proof of lawful allotment and often the Society's NOC or consent to effect the mutation in your name. You cannot bypass the Society.

Conclusion: Do not proceed without securing these documents. Your immediate course of action is to insist that the seller (Mr. X) obtains and provides the original Allotment Letter from the Society. Simultaneously, approach the Society directly (with the seller) to verify the legitimacy of the Exchange Deed, confirm no duplicate allotment exists, and obtain a sale NOC. Only with these in hand, alongside the registered Exchange Deed, will the title be clear for a safe purchase. Engage a property lawyer to scrutinize the Society's bylaws and the Exchange Deed's terms.