No NOC Required to Sell Flats in Mumbai on Government or Civic Land
The Maharashtra Department of Stamps and Registration has clarified that developers do not need a No-Objection Certificate (NOC) from government agencies to sell or transfer flats built on land owned by agencies like MHADA, CIDCO, and MIDC. This move aims to streamline the property registration process and boost revenue.
Property RegistrationNocMumbaiMhadaCidcoReal Estate MumbaiJul 26, 2025
The department clarified that developers do not require a no-objection certificate (NOC) from government agencies like 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 owned by these agencies.
Confusion arose in April when the government modified Article 18 (a)(1)(b) of the Registration Act, as reported by Hindustan Times. According to Hitesh Thakkar, an expert in property registration, the change was ambiguous, and authorities construed it to require a NOC from MHADA, SRA, MIDC, and CIDCO for the sale and transfer of each apartment built on their property.
This led to procedural and other delays, which ultimately resulted in 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, Thakkar added.
The July 24 circular, on the other hand, clarifies that the provisions of Section 18 (a) (1) (b) of the Registration Act do not apply 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 like MHADA, CIDCO, and MIDC. However, these provisions will still apply to documents in the form of a final purchase deed/assignment deed in the form of land and construction in the interest of the organization or corporation concerning such property, according to the clarification.
A senior officer attributed the move to the strain on the state's finances caused by welfare schemes like Ladki Bahin and others. 'Most revenue comes from urban areas, and we realized that our revenue from stamps and registration in urban areas was falling. Hence, we asked the Stamps and Registration Department to issue the clarification,' the officer added.
Frequently Asked Questions
What is the NOC requirement for selling flats in Mumbai?
Developers no longer need a No-Objection Certificate (NOC) from government agencies like MHADA, CIDCO, and MIDC to sell or transfer flats built on land owned by these agencies.
Why was the NOC requirement introduced in April?
The NOC requirement was introduced due to an ambiguous change in Article 18 (a)(1)(b) of the Registration Act, which led to procedural delays and a significant drop in property registration.
How did the NOC requirement affect property sales?
The NOC requirement caused a 70% fall in the registration of such properties, leading to delays and some buyers seeking refunds of stamp duty.
What is the new clarification from the Maharashtra Department of Stamps and Registration?
The department clarified that the provisions of Section 18 (a) (1) (b) of the Registration Act do not apply to the sale or resale of residential and/or non-residential units on land leased by municipalities, local self-government bodies, and authorities like MHADA, CIDCO, and MIDC.
Why did the government issue this clarification?
The government issued this clarification to address the strain on state finances caused by welfare schemes and to boost revenue from stamps and registration in urban areas.
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