This demand by the developer is legally vulnerable and largely unenforceable under Indian property laws, consumer protection jurisprudence, and Maharashtra real estate regulation.
Exorbitant transfer fees or escalating NOC charges levied by developers on resale properties are routinely struck down by legal forums as unconscionable, arbitrary, and an unfair trade practice.
Under Maharashtra law, even a fully formed Cooperative Housing Society (CHS) is strictly capped by a State Government Circular (under Section 79A of the MCS Act, 1960) to a maximum transfer premium of ₹25,000. A builder—acting in a promoter/interim administrative capacity—cannot demand ₹4.14 lakh for a simple administrative NOC when the law caps society transfer charges at ₹25,000.
A contractual clause that violates statutory principles, public policy, or basic fairness is unenforceable in court. Developers are only entitled to charge a nominal, reasonable processing fee (typically ₹500 to ₹5,000) to issue a "No Dues Certificate
Write an official email/letter to the senior management and customer relationship team at Gera Developments,
asking them to furnish NOC, failing which you may approach Consumer Disputes Redressal Commission (District/State),for Deficiency in service and Unfair Trade Practice (Consumer Protection Act, 2019).
Besides You can file a formal complaint under Section 31 of RERA seeking a direction against the developer to restrain them from demanding arbitrary transfer fees or blocking the transfer of rights.
NOC charges demand from builder on sale of new flat
Dear Legal Team, I am a resident of Mumbai and seek your legal advice regarding the sale of my apartment in Pune. In 2022, my wife and I purchased a 2 BHK apartment from Gera Developments for approximately ₹93 lakh. We took possession of the apartment at the end of May 2026, having completed all payments, including those due at possession. We now have possession. We are now in the process of selling the apartment. However, we have been informed that, under a clause in the Agreement for Sale, the builder has levied NOC charges based on a 10% year-on-year escalation from 2022, resulting in a demand of approximately ₹4.14 lakh merely for issuing a - (NOC) No Objection Certificate. We find this demand to be excessive and disproportionate for the following reasons: We have held the property for nearly four years, funded largely through a home loan. Despite this, the appreciation on the property's sale is expected to be only around 5%. The NOC charges alone consume a substantial portion of the gains, making the sale commercially unviable. The fee appears to bear no reasonable relationship to the administrative cost of issuing an NOC. Additionally, in May 2026, I purchased another 3 BHK apartment from the same builder. The sale proceeds from this 2 BHK apartment are intended to fund my financial commitments towards the new property. These NOC charges are therefore placing me under considerable financial strain. I would appreciate your guidance on the following: Is such an escalating NOC charge legally enforceable under RERA, the Maharashtra Apartment Ownership Act, or any other applicable law? Can a builder levy a transfer/NOC fee of this magnitude, even if such a clause exists in the Agreement for Sale? What legal remedies are available if these charges are arbitrary, unreasonable, or unfair? Would this be an appropriate matter to challenge before MahaRERA or the Consumer Commission? I would be grateful for your advice on the legal position and the best course of action. Thank you for your time and guidance. Savio.
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4 Answers
Clauses that mandate year-on-year escalation on NOC fees—especially when the builder is no longer managing the society—are routinely deemed unfair and unconscionable Unreasonable
2)the sale is time-sensitive and you must obtain the NOC immediately, pay the amount under protest. State clearly in writing that the payment is being made to execute the sale, without prejudice to your right to recover it through legal channels.
3)file a formal complaint before the MahaRERA Conciliation and Dispute Resolution Forum or approach the Consumer Court for a refund of the excess charges with interest
4) you have good case on merits
In my view the escalation clause would apply only when the flat buyer intends to sell the flat when it is under construction and possession is not given to the flat buyer and OC for the building is not received
when the OC is received and possession is handed over there absolutely no need to pay any transfer charges to the builder
the builder's demand is illegal
nothing stops you from selling the flat since you are in possession
had the flat been under construction and you would have sold it then the builder could demand the transfer charges and failing such payment the builder would not recognise your buyer and would not give possession to your buyer. Thus, to avoid such a situation it would be prudent to pay the transfer charges in those circumstances
however in your case the building is complete and the possession is with you, so there is no need to pay anything to the builder
even if there is any clause in the agreement which requires the flat buyer to pay transfer charges after he has been put in possession, then in my view such a clause is illegal and nothing but a blanket clause having no legal enforceability
you can very well sell the flat without any reference to the builder
at the highest the builder will not submit the name of your buyer to the society of flat buyers as and when it is formed
however the buyer in such a case would not be remediless and the society would have no option but to accept the buyer as its member. If it does not the buyer can simply approach the district deputy registrar of co-operative societies for a direction to the society to issue a share certificate to the buyer, which the DDR will readily grant
so i do not see any impediment at all against selling your flat
you must ignore the builder's illegal demand
he is out now. tell him to convey the land and building and form the society
