Society formation process is underway at my flat Runwal in thane. I have given my flat on rent. Builder has asked me to pay administrative charges of Rs 25000+ gst for non-occupancy
Is the builder liable to charge me?
I C Naik
Non-occupancy charges [NOC] in respect of rented flat of a cooperative housing society are levied in terms contractual obligation of a member who does not occupy the flat himself but lets it out to other than family members. A provision of NOC is to be found in the registered bye-laws since there is no cooperative housing society there are no bye-laws and no provision of NOC payable to the Society. If the builder is asking NOC ask him for a documentary proof of NOC payable by you. Is there any contractual obligation you have agreed with the builder in flat sale/purchase agreement directly or in an implied manner. On a satisfactory evidence from builder you will have to pay NOC. However as regards an amount you can point out that the Government has passed an order under Section 79A of the MCS Act 1960 limiting the NOC to 10% of Service Charges.