Legal Query Regarding Society NOC for SRA Flat Transfer

Dear client,

In your case, the refusal of the Co-operative Housing Society to issue a NOC for transfer of the SRA flat raises questions of legality and fairness. Under the Maharashtra Co-operative Societies Act, 1960 and the rules governing co-operative housing societies, a society generally cannot unreasonably refuse a NOC or obstruct the transfer of a flat if the member has complied with the required transfer formalities. An AGM resolution stating that NOC will not be granted where there is an alleged illegal grill extension may not be legally sustainable if it is arbitrary or contrary to statutory rights of a member to transfer the flat. Structural or unauthorized alterations can be dealt with separately through penalties or directions to remove the alteration, but such issues usually cannot be used as a blanket ground to deny transfer unless the society’s by-laws or applicable SRA regulations specifically permit it.

Further, if the society has already issued a legal notice and imposed a penalty for the alleged illegal extension, the matter has effectively been addressed through disciplinary action. Continuing to withhold the NOC after penalizing the member may be considered excessive or unreasonable, particularly when the transfer process is otherwise complete. Moreover, if the same managing committee previously granted NOCs to other members who had similar alleged violations, denying it only in your case could be viewed as discriminatory and contrary to the principle of equal treatment among members. Selective enforcement of rules is generally frowned upon by adjudicating authorities.

As a legal remedy, you may first send a formal written representation to the society requesting issuance of the NOC and pointing out the earlier instances where similar NOCs were granted. If the society still refuses, you can approach the Deputy Registrar of Co-operative Societies or file a dispute under Section 91 of the Maharashtra Co-operative Societies Act, 1960 before the Co-operative Court seeking directions to the society to issue the NOC or permit the transfer. In appropriate circumstances, authorities may also direct the society to process the transfer without insisting on the NOC if the refusal is found to be arbitrary. You may also place on record proof of the earlier NOCs issued to other members to demonstrate unequal treatment.

Practically, you should gather documents such as the flat purchase agreement, stamp duty payment proof, society correspondence, AGM resolution, penalty notice, and copies or details of earlier NOCs issued to other members, and present them before the competent authority or court. This will strengthen your claim that the refusal is unjustified and that the transfer of the SRA flat should be allowed subject to compliance with the applicable rules.