Non-Occupancy Charges
Non-Occupancy Charges (NOC charges) are additional monthly charges levied on a flat owner who lets the flat to a tenant or leaves it unoccupied, compensating the society for extra wear on common amenities.
What is Non-Occupancy Charges?
When a flat in a co-operative housing society is not occupied by the owner (i.e., it is rented out or vacant), the society may charge Non-Occupancy Charges in addition to regular maintenance. This is because the society bears additional costs from a non-member (tenant) using common facilities.
The maximum permissible Non-Occupancy Charge is 10% of the service charges (maintenance charges) billed to that flat. This cap was set by the Supreme Court of India.
Why it matters
Many societies historically charged excessive Non-Occupancy Charges — sometimes 200–300% of maintenance — leading to widespread litigation. The Supreme Court ruling in Bipin Doshi vs. Society (2011) capped the charge at 10%.
Overcharging Non-Occupancy Charges is recoverable by the member in a consumer forum or before the Registrar.
Legal & regulatory context
The Supreme Court in 2011 ruled that Non-Occupancy Charges cannot exceed 10% of service charges. The Maharashtra government has incorporated this cap in the Model Bye-Laws.
The owner must inform the society of tenancy in writing, and the society must issue a Sub-Letting Permission. Only after this can Non-Occupancy Charges legally begin.
How SocietyBee handles it
SocietyBee's bill configuration lets the treasurer mark specific flats as 'non-occupied by owner'. The system automatically calculates and adds Non-Occupancy Charges at 10% of service charges in the monthly bill, and flags over-limit charges if entered manually.
Try SocietyBee free →Frequently asked questions
Can Non-Occupancy Charges exceed 10% of maintenance?
No. The Supreme Court has capped Non-Occupancy Charges at 10% of service charges. Any society charging more is in breach of the ruling and the Model Bye-Laws.
Do Non-Occupancy Charges apply to vacant flats?
Yes. A flat that is neither occupied by the owner nor rented out (i.e., locked/vacant) can still attract Non-Occupancy Charges, as the member is not personally using the flat.