Table of Contents
Quality Service Guarantee Or Painting Free
Get a rental agreement with doorstep delivery
Find the BEST deals and get unbelievable DISCOUNTS directly from builders!
5-Star rated painters, premium paints and services at the BEST PRICES!
Loved what you read? Share it with others!
Submit the Form to Unlock the Best Deals Today
✕
Check Your Eligibility Instantly
Experience The NoBrokerHood Difference!
Set up a demo for the entire community
Tenant Super Relax Plan
Enjoy Hassle-Free Renting
Full RM + FRM support Instant alerts & premium filters Rent negotiation & relocation helpSubmit the Form to Unlock the Best Deals Today
Non-Occupancy Charges in Housing Societies 2025: Meaning, Rules and Calculation
Published : January 31, 2025, 12:00 AM
Updated : October 17, 2025, 10:41 AM
Author :
kruthi
Table of Contents
Non-occupancy charges are additional fees levied by housing societies when a flat is rented out or remains vacant, and is not occupied by the owner or their immediate family. Non-occupancy charges help societies manage expenses fairly, with rates typically set at 10% of the monthly service charges. In some cases, non-occupancy charges in society may vary depending on society's rules. Legal provision under the Maharashtra Cooperative Societies Act 1960 ensures proper calculation, standardisation, and prevents the misuse of these charges.
What Are Non-Occupancy Charges?
Non-occupancy charges are fees that housing societies impose on flats that remain vacant or are rented out, instead of being occupied by the owner. Non-occupancy charges in housing societies help cover maintenance, utilities, and shared expenses, ensuring all residents contribute fairly, even if some flats are unoccupied. Let’s understand it in more detail:
Who Pays the Non-Occupancy Charges?
According to the Non-Occupancy Charges Society Bye-Laws, the owner, who is also a member of the society, is responsible for the charges of non-occupancy. However, if the tenant and the landlord mutually agree upon the tenancy agreement, the tenant can be made accountable for paying Non-Occupancy Charges. As per society bye-laws, non-occupancy charges are levied on owners who rent out their flats to cover the additional strain on resources due to tenants.
Quality Service Guarantee Or Painting Free
Get a rental agreement with doorstep delivery
Find the BEST deals and get unbelievable DISCOUNTS directly from builders!
5-Star rated painters, premium paints and services at the BEST PRICES!
Non-Occupancy Charges as per bye-laws are levied if a ready to move flat remains vacant after possession, or it is not used by the landlord or their close family members. The owner of the unit is responsible for paying the charges of non-occupancy.
When Are Non-Occupancy Charges Not Applicable?
As per Non-Occupancy Charges rules, a charge for non-Occupancy is not levied if: -
- You are using the premises as a residential unit for yourself.
- A close member of your family (parents, spouse, children, siblings including other close relations) is occupying the flat.
- The unit is not sublet, remains vacant or locked.
The finer print defines these circumstances in detail. In some cases, if the residents are availing commercial benefits from a property in a society, the society has the right to apply a non-Occupancy Charge along with the maintenance bill. Non-Occupancy Charges on sinking funds are not included along with other repair funds and taxes.
How To Calculate the Non-Occupancy Charges?
The rules and regulations of applicability of a charge of non-occupancy are detailed in the Non-Occupancy Charges Circular, Maharashtra. According to Section 79A of the Maharashtra Cooperative Societies Act, 1960, the total amount in cases of non-occupancy cannot exceed 10% of the maintenance or basic service charge of the society.
For example, If the maintenance charges of a society amount to ₹ 3,000, the total NOC charges cannot exceed ₹ 300. Under the Supreme Court’s judgement on Non-Occupancy Charges and its revision, the cap is set at 10% to avoid exploitation by the housing society.
- Non Occupancy Charges meaning in Marathi: अधिभोग नसलेले शुल्क (Adhibhōga nasalēlē śulka)
- Non Occupancy Charges meaning in Hindi: गैर अधिभोग शुल्क (Gair Adhibhog Shulk)
What Is The Criteria for Levying Non-occupancy Charges: Cooperative Housing Societies?
A Non-Occupancy Charge in Society is applicable under the circumstances of a vacant or rented flat. A cooperative Housing Society has the right to levy:
- Non-occupancy charges for a vacant flat
- Non-occupancy charges for a rented flat
- Non-occupancy charges for commercial premises
How Much Can Societies Charge as Non-Occupancy Charges?
Before the Supreme Court rule, some housing societies charged non-occupancy fees arbitrarily, often exceeding fair limits. The non-occupancy charges of the Supreme Court judgment clarified that societies can levy a fee only up to 10% of the monthly service charges for all flats that are vacant or rented out. For example, if the service charge is ₹3,000, the non-occupancy charge cannot exceed ₹300, ensuring fairness and compliance.
What Happens If the Flat-owner Refuses to Pay Non-Occupancy Charges?
In case the owner of a unit fails or refuses to pay the Non-Occupancy Charges, the housing society can send a reminder notice to the owner. The Managing Committee has the right to declare the owner a ‘defaulter’ and withhold the no-dues certificate. In certain circumstances, society can initiate a legal proceeding to collect the withheld/due amount.
Difference Between Maintenance Charges and Non-Occupancy Charges
Maintenance charges and non-occupancy charges are often confused, but they serve different purposes. NOC charges in society are specifically for vacant or rented flats, while maintenance covers all residents.
| Aspects | Maintenance Charges | Non-occupancy Charges (NOC) |
| Definition | Fees for regular upkeep of society amenities and services | Charges for flats that remain vacant or rented out |
| Applicability | All occupied flats | Only vacant or non-occupied flats |
| Purpose | Covers cleaning, security, repairs, and utilities | Ensures fair contribution from unoccupied flats |
| Rate / Amount | Fixed monthly or yearly as per society rules | Usually 10% (2) of the monthly maintenance charges |
| Decided By | Society committee / managing body | Society committee, within legal limits |
| Legal Backing | Cooperative Societies Act / Society bylaws | Supreme Court rulings, Maharashtra Cooperative Societies Act |
Government Resolution on Non-Occupancy Charges?
The government has issued clear guidelines for society non-occupancy charges to ensure fairness and prevent excessive fees by housing societies for unoccupied or rented flats. In some states like Karnataka, the government has issued direct guidelines against the collection of NOC charges. The points below will explain things in a better way:
- The Maharashtra Government resolution states that non-occupancy charges cannot exceed 10% of the monthly service charges or maintenance amount.
- Societies must apply uniform rates to all members, whether the flat is vacant, rented or used by relatives.
- The rule is based on Section 79A (3) of the Maharashtra Cooperative Societies Act, ensuring transparent and fair fee collection.
Non-Occupancy Charges: Court Judgement
The introduction of Section 79A under the Maharashtra Cooperative Societies Act, 1960, played a major role in regulating non-occupancy charges and ensuring fair practices among housing societies.
- The state government issued a circular under Section 79A, capping non-occupancy charges and making it mandatory for societies to follow the rules.
- The Mont Blanc Cooperative Housing Society challenged this rule under Article 226 (4), claiming it violated their freedom under Article 19 of the Constitution. (5)
- The Supreme Court upheld the circular in the public interest, revising the final bylaws and setting clear rules for the calculation and collection of non-occupancy charges.
How Can NoBroker Help?
NoBroker helps you handle legal services like property documentation, agreement drafting, and society-related legal issues with expert guidance. Along with legal help, they offer property management, interior design, packers & movers and rental services. Choosing NoBroker ensures a smooth, transparent and affordable experience with professional support for all your housing and legal needs under one trusted platform.
Frequently Asked Questions
Ans. Non-Occupancy Charges are fees charged by a housing society when a property owner or their close family members do not reside in the property. These charges typically apply to vacant or rented flats and are collected to cover the additional administrative and maintenance costs.
Ans. By law, the property owner who is a member of the housing society is responsible for paying Non-Occupancy Charges. However, if the tenancy agreement specifies, the responsibility can be transferred to the tenant.
Ans. Non-Occupancy Charges are usually a percentage of the regular maintenance fee, often capped at 10% by local housing laws.
Example: If monthly maintenance is ₹1,000 and the rate is 10%, the charge will be ₹100.
Ans. A cooperative housing society can impose Non-Occupancy Charges in these cases:
When a flat is vacant
When a flat is rented out
For commercial premises under the society’s jurisdiction
Ans. If the owner fails to pay, the housing society may send reminder notices, declare the owner a defaulter, and withhold the no-dues certificate. In serious cases, the society can initiate legal action to recover the outstanding amount.
Ans. Yes, societies can charge both as they serve different purposes, such as maintenance for upkeep, and non-occupancy for vacant or rented flats.
Ans. No, tenants are not responsible. The property owner must pay non-occupancy charges to the housing society as per legal guidelines.
Recommended Reading
Society Maintenance Charges : Meaning, Cost, Types and Calculation
January 31, 2025
179682+ views
What are Society Transfer Charges as per the Housing Act and Rules in 2025?
January 31, 2025
73914+ views
What is the Difference Between Movable and Immovable Property?
May 1, 2025
68292+ views
Leave and License Agreements: Meaning, Calculator, Format and Registration in 2025
January 31, 2025
60128+ views
A Comprehensive Guide to Karnataka Rent Control Laws and Tenant Rights
January 31, 2025
51412+ views
Loved what you read? Share it with others!
Most Viewed Articles
Franking Charges Explained: Meaning and Benefits
January 31, 2025
1112445+ views
Society Maintenance Charges : Meaning, Cost, Types and Calculation
January 31, 2025
179682+ views
BBMP E-Khata Registration process for property owners in Bangalore, Karnataka in 2025
March 19, 2025
145603+ views
Revenue Stamp in India: Meaning, Types, Uses, Legal Value & Where to Buy in 2025
January 31, 2025
119760+ views
Stamp Duty and Registration Charges in Bangalore in 2025
January 23, 2025
115630+ views
Author
Recent blogs in
How to Check Land Records Online in India: Step-by-Step Verification Process
November 30, 2025 by Vivek Mishra
Difference Between TDS and TCS: Meaning, Applicability, Key Rules and Examples
November 30, 2025 by Vivek Mishra
Power of Attorney in Haryana: Registration Process, Documents & Validity
November 28, 2025 by Vivek Mishra
What is Specific Performance Suit: Legal Procedure, Documents & Key Difference
November 28, 2025 by Ananth
Join the conversation!