NOC for Housing Society Accounting

Many Societies charge a Non Occupancy Charges for Apartments that are rented.  These charges are made part of the Monthly or Quarterly Invoices or Demand Notes.

Here are a few FAQs about Non Occupancy Charges (NOC).

1. Is NOC a function of the amount of Rent collected by the Owner? E.g., 20% of the Rent collected is paid as NOC to the Housing Society?

Ans. NOC is prevalent in the state of Maharashtra. The Model By-Laws leave it in to the GBM to decide the structure of the NOC.  The State Government’s issue on NOC regulations in 2001 had provided for NOC to be calculated as a function of the Service Charges / Maintenance Charges.  However, when the ruling was challenged by the Mont Blank CHS, the Court had provided an interim relief to this society to collect up to 10% of the Rent recovered by the Owner, as NOC.

2. What is the typical NOC charge collected.

Ans. Again, per Model By-laws this is left to the General Body to decide. However, per State Government regulation, the NOC is capped at 10% of the Service Charges / Maintenance Charges.

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