I requested for NOC and no dues certificate from the society as I have decided to sell my flat. The secretary informed me that they will inter- view the buyer and then decide upon my request. I am surprised to know that the buyer will be interviewed. Is this in accordance with the MCS Act, Rules and bye- laws?

Many flat owners are surprised when a housing society asks to "interview" a prospective buyer before approving a property sale. While some societies claim this is necessary for security, the Maharashtra Co-operative Societies (MCS) Act and model bye-laws provide clear guidelines on the powers of a managing committee.

According to legal expert Sharmila Ranade, a managing committee has no legal authority to interview, screen, or profile a prospective buyer before the sale of a flat.

Society Cannot Demand Buyer Interview

Anupa Sheth from Bhandup raised a query about whether a housing society can insist on interviewing a buyer before allowing the sale of a flat.

I completely understand why you are surprised to hear that a housing society wants to "interview" your buyer. The short answer is no, this is absolutely not mandated. The secretary is overstepping their authority. Under the Maharashtra Co-operative Societies (MCS) Act and housing society bye-laws, the managing committee has no legal authority to inter- view, screen or profile a prospective buyer. Legally, you do not need a no-objec- tion certificate from the society to sell your flat. Neither the Act nor the bye-laws empower the committee to vet buyers through interviews.

What the Maharashtra Housing Society Rules Say

Under Model Bye-law 38, a flat owner must only give the society 15 days' written notice before the sale. The society cannot stop regis- tration of the sale agree- ment. It may object only if maintenance dues remain unpaid or a legal dispute involving the flat is pend- ing. It cannot reject a buyer based on personal prefer- ences.

What Flat Owners Should Do

Write to the secre- tary requesting the exact bye-law or MCS Act provi- sion requiring such an interview. Ensure all main- tenance charges are cleared. If there are no out- standing dues, the society cannot refuse to issue a no- dues certificate.

If the com- mittee withholds paper- work or insists on an inter- view, file a complaint with the deputy registrar of co- operative societies.

Why Some Societies Follow This Practice

Some societies have adopted this practice citing residents' safety and reports of anti- social elements misusing flats. However, the manag- ing committee cannot impose such a requirement without approval from the general body. Such a propo- sal should first be placed before the general body, debated and approved through a valid resolution before implementation.

How Much Can a Housing Society Spend on Repairs Without General Body Approval?

Another common question relates to the spending powers of a housing society's managing committee.

Repair and Maintenance Spending Limits

What is the limit of expenditure to be incurred by the manag- ing committee on the maintenance and repairs of the society? Is it dependent on the total number of members?

Dhimant Saini, Borivali

The limit depends on the society's membership. The managing committee may incur repair and mainten- ance expenditure once each financial year, provided a single expense does not exceed 1,00,000 for societies with up to 25 members, 2,00,000 for 26- 50 members, 3,00,000 for 51-100 members, 4,00,000 for 101-1000 members and `5,00,000 for 1001 or more members under Rule 106C-13(5) of the amended MCS Rules.

The bye-laws provide for three slabs and lower limits: 25,000 for societies with up to 25 members, 50,000 for 26-50 members and `1,00,000 for 51 or more members.

Legal Expert

The questions are answered by Sharmila Ranade, a legal expert associated with Mumbai Grahak Panchayat.