Non-Occupancy Charges

Non occupancy charges are levied when the flat is licensed or leased out to a third party. However, some societies insist on this payment even if a relative of the member is staying. If the Member is staying with the relatives it cannot be charged. However, if the relatives are staying alone, the society's permission is required and also they can charge this NOC. This can be charged upto a maximum of 10% of the maintenance charges. Interest can be levied at 18% for any dues not remitted on the due date. The Model bye laws as such are not available in website. please find the extract of some key provisions.

vasudevan

Dear Mr.Vasudevan,

Thanks for the reply.

You have mentioned about 10% of normal maintainance charges as NOC. Is there any minimum limit? My society is charging Rs.300 as monthly maint. cahrges, Rs.45 towards sinking fund. Can the society charge Rs.100/- as NOC. Kindly advise.

No. Supreme Court has ruled that society cannot charge more than 10% and there is no minimum. Please check  this site under property for related queries on the subject. the judgement reference is some where available. However, if you are taking up with society, simply question the legality by a written letter and ask them to show the bye-law. The responsibility is showing the bye law is on them. You can inspect the bye-law, AGM Minutes and also ask for a copy of the bye-law @ Rs.10/- only, from the society.

vasudevan