In large residential complexes with multiple buildings, it is common to have an apex society managing shared facilities like roads, gardens, and security. While individual societies collect maintenance from members, a frequent question arises—can Non-Occupancy Charges (NOC) be applied on apex society contributions as well?
Let’s break this down clearly.
Understanding Non-Occupancy Charges (NOC)
Non-Occupancy Charges are:
- Levied when a flat is not occupied by the owner
- Typically applicable when the flat is:
- Given on rent
- Left vacant
As per model bye-laws:
- NOC cannot exceed 10% of service charges
What Are Service Charges Under Bye-laws?
As per
Model Bye-law 66
Service charges include:
- Common electricity
- Staff salaries
- Repairs and maintenance
- Administrative expenses
- Contribution to apex society or federation
This means:
👉 Apex society charges are part of total service charges, but with an important distinction.
Key Distinction: Own Charges vs Apex Charges
Your society collects two types of charges:
1. Society’s Own Service Charges
- Expenses directly incurred by your society
- Example:
- Building maintenance
- Lift charges
- Staff salaries
👉 On these charges, your society can levy 10% NOC
2. Apex Society Charges
- Collected on behalf of the apex body
- Used for:
- Roads
- Gardens
- Security of the larger complex
👉 Your society acts as a collector, not the decision-maker
Can You Apply NOC on Apex Charges?
👉 Short Answer: No (unless specifically permitted)
Your society cannot automatically levy 10% NOC on apex charges because:
- These charges belong to the apex society
- Your society has no authority to alter them
When Is It Allowed?
NOC on apex charges is valid only if:
- The apex society’s General Body:
- Passes a resolution
- Approves levy of NOC on its charges
- Clearly documents the same
Without such approval:
❌ Your society must not apply NOC on apex charges
Why This Restriction Exists
This rule ensures:
- No double charging on members
- Proper jurisdiction between societies
- Transparency in financial collection
Each society can only levy charges within its authority
Practical Example
If your monthly bill includes:
- ₹3,000 – Society service charges
- ₹2,000 – Apex society charges
Then:
- NOC (10%) applies only on ₹3,000
- Not on ₹2,000
Unless apex society permits it.
What Should Your Society Do?
- Continue charging NOC only on its own service charges
- Check if apex society has:
- Passed any resolution regarding NOC
- If not:
- Avoid applying NOC on apex charges
Conclusion
While Non-Occupancy Charges up to 10% are allowed, they are restricted to your society’s own service charges. Apex society charges are merely collected on behalf of another body and cannot be subjected to additional levies unless explicitly approved by the apex society itself.
Understanding this distinction helps avoid disputes and ensures compliance with cooperative housing laws.
