Unrealistic Charges for Builder NOC

Dear Client
A builder cannot ordinarily insist on arbitrary or unreasonable charges for issuing an NOC if such charges are not supported by the terms of the agreement for sale or the applicable law. Whether the amount demanded is legally recoverable will depend upon your builder-buyer agreement, the applicable RERA provisions, and the rules governing the project.
If you do not wish to jeopardize the resale transaction, you may consider paying the amount under protest, clearly recording in writing that the payment is being made without admitting liability and reserving your right to seek a refund of any excess or unlawful charges. Thereafter, you may challenge the demand before the appropriate authority, including the RERA Authority or the Consumer Commission, if the demand is found to be contrary to law or the agreement.
You may consult a local lawyer or advocate for advice based on the specific facts and documents of your case.

Dear Client,

If your builder is demanding Rs. 150 per sq. ft. plus 18% GST for issuing an NOC for resale and you believe the charge is not permitted under the applicable RERA provisions or the agreement, your immediate concern is balancing your legal rights with the need to complete the resale transaction without delay.

A practical approach may be to first request the builder in writing to provide the legal basis, contractual clause, or statutory provision authorizing the charge. If time is critical and the resale deal may be jeopardized, you could consider paying the amount under protest, clearly recording in writing that the payment is being made solely to avoid delay in the transaction and without admitting the legality of the demand.

After the transaction is completed, you may pursue recovery of the amount or challenge the demand before the appropriate RERA authority, consumer commission, or other competent forum, depending on the facts and the state in which the property is located. Before taking any step, review your sale agreement and applicable state RERA rules, as the legality of transfer charges and NOC fees can vary.

Consulting a real-estate lawyer for a quick review may help you determine the strongest course of action while minimizing the risk to your resale deal.