No NOC Required for Selling Flats on Government or Civic Agency Land
The department of stamps and registration has issued a circular clarifying that no-objection certificates (NOCs) are not required from agencies like MHADA, MIDC, and CIDCO for the sale of flats built on their land. This move aims to streamline the property registration process and reduce delays.
PropertyReal EstateMumbaiNoobjection CertificateRegistration ActReal Estate MumbaiJul 26, 2025
In a clarification issued on Thursday, the department stated that builders do not require a no-objection certificate (NOC) from agencies such as the Maharashtra Housing Area and Development Authority (MHADA), City and Industrial Development Corporation (CIDCO), Maharashtra Industrial Development Corporation (MIDC), or municipalities, to sell or transfer flats built on land belonging to these agencies. The clarification was issued by Dharmdev Mainkar, deputy inspector general of stamps and registration.
Confusion had arisen in April, after the department amended Article 18 (a)(1) (b) of the Registration Act. The amendment was ambiguous, and officials had interpreted it in a way that required an NOC from MHADA, SRA, MIDC, and CIDCO for the sale and transfer of every flat built on their property, explained Hitesh Thakkar, an expert on property registration.
This led to procedural and other delays, which ultimately led to a 70% fall in the registration of such properties. Some buyers also sought a refund of stamp duty as it was not possible to get NOCs in time, he said.
The July 24 circular, however, clarifies that the provisions of section 18 (a) (1) (b) of the Registration Act will not be applicable to the sale or resale of residential and/or non-residential units in buildings developed by private developers on land leased by municipalities, local self-government bodies, and authorities such as MHADA, CIDCO, and MIDC. They will, however, apply to documents in the form of final purchase deed / assignment deed in the form of land and construction in the interest of the organization or company in respect of such property, the clarification said.
Raju Dhote, deputy inspector general, stamps and registration department, said the clarification had been issued after consulting the state revenue department and law and judiciary department. They had also informed the state inspector general of stamps and registration, Ravindra Binwade, about the delays and losses in revenue.
A senior officer in the state finance department said, “The finances of the state are strained because of the Ladki Bahin and other welfare schemes. Most revenue comes from urban areas and we realised that our revenue from stamps and registration in urban areas was falling. Hence, we asked the Stamps and registration department to issue the clarification.”
Frequently Asked Questions
What is the new clarification issued by the department of stamps and registration?
The department has clarified that no-objection certificates (NOCs) are not required from agencies like MHADA, MIDC, and CIDCO for the sale of flats built on their land.
Why was there confusion in April regarding the Registration Act?
The amendment to Article 18 (a)(1) (b) of the Registration Act was ambiguous, leading to the interpretation that an NOC was required from MHADA, SRA, MIDC, and CIDCO for the sale and transfer of every flat built on their property.
What impact did the confusion have on property registration?
The confusion led to procedural delays and a 70% fall in the registration of such properties. Some buyers even sought refunds of stamp duty.
Who issued the clarification and what is their position?
The clarification was issued by Dharmdev Mainkar, deputy inspector general of stamps and registration.
Why did the state finance department request the clarification?
The state finances are strained due to welfare schemes, and most revenue comes from urban areas. The department realized that revenue from stamps and registration in urban areas was falling, leading to the request for clarification.
Related News Articles
Punjab CM Bhagwant Mann Announces Significant Relief for Real Estate Sector
Punjab Chief Minister Bhagwant Mann has introduced several new initiatives aimed at providing substantial relief to the ailing real estate sector in the state. These measures are expected to boost the industry and benefit both developers and homebuyers.
Pune Mulls Revised Plan for Property Cards for Flat Owners
Pune municipal officials are discussing a revised proposal to issue property cards to flat owners in MahaRERA-registered projects. The state government currently issues property cards for land in urban areas, and the new plan aims to extend this to indivi
ICICI Bank Leases 1.29 Lakh Sq Ft Commercial Space in Turbhe, Navi Mumbai for ₹9 Crore Annually
ICICI Bank has leased 1.29 lakh sq ft of commercial space in Turbhe, Navi Mumbai, for an annual rent of nearly Rs 9 crore. The property has been leased from Arihant Superstructures, a listed real estate firm.
Tragic Death in Belagavi: Brothers' Drug-Fueled Fight Ends in Fatality
A violent altercation between two brothers, both under the influence of drugs, in Belagavi has resulted in a tragic fatality. The incident has shocked the local community and raised concerns about drug abuse and its devastating consequences.
Builders Play Crucial Role in Telangana's Urban Development: Minister Reddy
Minister Uttam Kumar Reddy emphasizes the significant role of builders in the rapid urban development of Telangana, highlighting their contributions to the real estate industry.
Prestige Hotel Ventures Takes a Leap Forward with DRHP Filing to SEBI
Prestige Hotel Ventures, a major player in the real estate and hospitality sector, has taken a significant step towards expansion by filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). This move is expected to bolster the company's market presence and attract significant investments.