{"id":9978,"date":"2023-01-16T13:23:03","date_gmt":"2023-01-16T13:23:03","guid":{"rendered":"https:\/\/www.homebazaar.com\/knowledge\/?p=9978"},"modified":"2025-01-13T06:44:30","modified_gmt":"2025-01-13T06:44:30","slug":"non-occupancy-charges-calculation-circular-court-judgement","status":"publish","type":"post","link":"https:\/\/www.homebazaar.com\/knowledge\/non-occupancy-charges-calculation-circular-court-judgement\/","title":{"rendered":"Non-Occupancy Charges 2025 &#8211; Calculation &#038; Latest Court Judgement"},"content":{"rendered":"<h2><b>What are Non-Occupancy Charges?<\/b><\/h2>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-9983 size-full\" src=\"https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/16124903\/What-are-Non-Occupancy-Charges.jpg\" alt=\"What are Non-Occupancy Charges in 2025?\" width=\"810\" height=\"391\" srcset=\"https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/16124903\/What-are-Non-Occupancy-Charges.jpg 810w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/16124903\/What-are-Non-Occupancy-Charges-300x145.jpg 300w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/16124903\/What-are-Non-Occupancy-Charges-768x371.jpg 768w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/16124903\/What-are-Non-Occupancy-Charges-750x362.jpg 750w\" sizes=\"(max-width: 810px) 100vw, 810px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">If the ownership of the property is provided by the developer to the owner but the owner doesn\u2019t reside there then non-occupancy charges are imposed.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These charges can only be imposed if the property is provided on lease by the flat owner.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the family members of the flat owner residing in the house or remained locked then non-occupancy charges are not applicable.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Previously there were various complications due to the absence of these guidelines. Many disputes have happened between society and its respective members.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Flat owners were imposed huge charges by society. And society justifies that it is because flat owners provide property for lease. And earning great rental amounts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And circular about Non-occupancy charges solved all of these issues.<\/span><\/p>\n<h2><b>Criteria to impose Non-Occupancy Charges<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">As non-occupancy charges are levied only if the non-family members of the flat owner are residing in the house.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So the criteria for non-implication of non-occupancy charges are:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The flat owner is living in the house<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The flat or property is unoccupied or locked.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The flat owner\u2019s family members are residing in the flat.<\/span><\/li>\n<\/ol>\n<h2><b>Non-Occupancy Charges Calculation Process<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Section 79A of the Maharashtra Co-operative Societies Act 1940 states that non-occupancy charges should not surpass 10% of the applicable service charges of the society.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is mentioned in the circular provided by the government of Maharashtra.<\/span><b><\/b><\/p>\n<ul>\n<li>\n<h3><b>What are service charges?<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"alignnone wp-image-9982 size-full\" src=\"https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/16124737\/Service-charges.jpg\" alt=\"Non-Occupancy Charges 2025 - Service Charges\" width=\"810\" height=\"391\" srcset=\"https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/16124737\/Service-charges.jpg 810w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/16124737\/Service-charges-300x145.jpg 300w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/16124737\/Service-charges-768x371.jpg 768w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/16124737\/Service-charges-750x362.jpg 750w\" sizes=\"(max-width: 810px) 100vw, 810px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Service charges are considered as salaries, outgoings for the society office, allowances for personnel, sitting charges for committee members, common electric charges, etc.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is based on bye-law 68 of the new model bye-laws.<\/span><\/p>\n<p><b>Ex.<\/b><span style=\"font-weight: 400;\"> Mr. Raj stays in <a href=\"https:\/\/www.homebazaar.com\/properties-in-mumbai\">Mumbai<\/a>. He received a total maintenance bill from the society of amount Rs. 3500 for June month. Out of it, the service charge is Rs. 2500.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, society will impose Rs 250 as the non-occupancy charges for June month. As it is 10% of Rs. 2500.<\/span><\/p>\n<p><strong>Note<\/strong>:<br \/>\n<em><a href=\"https:\/\/www.homebazaar.com\/\">Homebazaar<\/a> serves homebuyers searching for flats in India with end-to-end services like site visits, and lower-interest home loans to property registration guidance. We provide the best price options &amp; offers for 1 to 4 BHK RERA-registered flats, villas &amp; penthouse properties in India. To begin a smooth homebuying journey with us, fill out the form mentioned below or on the right side.<\/em><\/p>\n<h2><b>What if the flat owner doesn\u2019t pay non-occupancy charges?<\/b><\/h2>\n<p><img decoding=\"async\" class=\"alignnone wp-image-9984 size-full\" src=\"https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/16124955\/What-if-the-flat-owner-doesnt-pay-non-occupancy-charges.jpg\" alt=\"What if the flat owner doesn\u2019t pay non-occupancy charges?\" width=\"810\" height=\"391\" srcset=\"https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/16124955\/What-if-the-flat-owner-doesnt-pay-non-occupancy-charges.jpg 810w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/16124955\/What-if-the-flat-owner-doesnt-pay-non-occupancy-charges-300x145.jpg 300w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/16124955\/What-if-the-flat-owner-doesnt-pay-non-occupancy-charges-768x371.jpg 768w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/16124955\/What-if-the-flat-owner-doesnt-pay-non-occupancy-charges-750x362.jpg 750w\" sizes=\"(max-width: 810px) 100vw, 810px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">In case the flat owner doesn\u2019t pay the non-occupancy charges, the housing society will provide them a reminder notice.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If still the charges are not paid then the owner will be labeled as a defaulter. And society will not provide a no-dues certificate for them.<\/span><\/p>\n<p>You can check out <a href=\"https:\/\/www.homebazaar.com\/knowledge\/stamp-duty-and-registration-charges-in-maharashtra\/\">stamp duty and registration charges in Maharashtra<\/a> to know the latest updates about charges imposed while buying a house.<\/p>\n<h2><b>Non-Occupancy Charges Circular from Government<\/b><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-9980 size-full\" src=\"https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/16124548\/Non-Occupancy-Charges-Circular-from-Government.jpg\" alt=\"Non-Occupancy Charges 2025 Circular from Government\" width=\"810\" height=\"391\" srcset=\"https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/16124548\/Non-Occupancy-Charges-Circular-from-Government.jpg 810w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/16124548\/Non-Occupancy-Charges-Circular-from-Government-300x145.jpg 300w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/16124548\/Non-Occupancy-Charges-Circular-from-Government-768x371.jpg 768w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/16124548\/Non-Occupancy-Charges-Circular-from-Government-750x362.jpg 750w\" sizes=\"(max-width: 810px) 100vw, 810px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">In Maharashtra, housing societies are governed and supervised by the Maharashtra Co-operative Housing Societies Act, 1960 (MCS Act 1960).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This act mentions the legal and regulatory processes to supervise the affairs of housing societies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">MCS Act 1960\u2019s, Section 79A clarifies that state government to provide circulars mentioning guidelines for the societies functionalities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Section 79A specifies and clarifies the imposition of necessary non-occupancy charges by housing societies to the members.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the guidance stated under section 79A is not maintained by the society then strict action will be taken.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It may also lead to the removal of the society office workers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Mont Blanc Co-operative housing society challenged section 79A in the Bombay High Court. It stated that the rules mentioned non-occupancy charges as <\/span><span style=\"font-weight: 400;\">illegitimate<\/span><span style=\"font-weight: 400;\">. And it also doesn\u2019t follow up the Constitution of India\u2019s Article 19.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Further, it stated that the circular is an unnecessary interference with the processes of housing societies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Whereas, the Maharashtra government stated that the circular saved members from unnecessary charges from the housing societies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The circular also stands for the right to property under Article 300A of the Constitution. This is because the flat is the personal property of a member. And society doesn\u2019t have the right to look at the use of the property.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The state argued that impose of unnecessary non-occupancy charges will impact the rental housing market in a wrong way.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, circular will be proven beneficial in various ways for the housing sector.<\/span><\/p>\n<h2><b>Non-Occupancy Charges Supreme Court Judgement<\/b><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-9981 size-full\" src=\"https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/16124659\/Non-Occupancy-Charges-Supreme-Court-Judgement.jpg\" alt=\"Non-Occupancy Charges 2025 Supreme Court Judgement\" width=\"810\" height=\"391\" srcset=\"https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/16124659\/Non-Occupancy-Charges-Supreme-Court-Judgement.jpg 810w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/16124659\/Non-Occupancy-Charges-Supreme-Court-Judgement-300x145.jpg 300w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/16124659\/Non-Occupancy-Charges-Supreme-Court-Judgement-768x371.jpg 768w, https:\/\/homebazaar-blog.s3.ap-south-1.amazonaws.com\/knowledge\/wp-content\/uploads\/2023\/01\/16124659\/Non-Occupancy-Charges-Supreme-Court-Judgement-750x362.jpg 750w\" sizes=\"(max-width: 810px) 100vw, 810px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">A division bench that includes justice BH Marlapalle and JH Bhatia praised the 79A circular. As it states that the housing society can charge just 10% of the applicable service fee as non-occupancy charges.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And this <a href=\"https:\/\/sahakarayukta.maharashtra.gov.in\/site\/upload\/documents\/Housing%20Manual%202012%20English.pdf\" rel=\"nofollow noopener\" target=\"_blank\">circular<\/a> made a uniform non-occupancy charge across Maharashtra.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But the judgment of the court comes with little modification. The judgment clarified that exceptions from paying applicable non-occupancy charges will be applied to only the flat owner and his\/her family members.<\/span><\/p>\n<h2><b>FAQs<\/b><\/h2>\n<table>\n<tbody>\n<tr>\n<td><b>What are the exceptions for non-occupancy charges?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The flat owner is living in the house, and the flat is non-occupied or vacant, both these scenarios are exceptions for non-occupancy charges.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Who needs to pay the non-occupancy charges?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The house owner is responsible for paying non-occupancy charges to the housing society. As this only needs to be paid if the property is on lease.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>What is the rate of non-occupancy charge?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The government has kept the rate of non-occupancy charges at 10% of service charges. Whereas, service charges cover salaries, outgoings for the society office, sitting charges for committee members, common electric charges, etc.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What are Non-Occupancy Charges? If the ownership of the property is provided by the developer to the owner but the owner doesn\u2019t reside there then non-occupancy charges are imposed. These charges can only be imposed if the property is provided on lease by the flat owner. If the family members of the flat owner residing [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":17869,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[415],"tags":[1920,1919,1918,1917],"class_list":["post-9978","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-guides-2","tag-non-occupancy-charges","tag-non-occupancy-charges-calculation","tag-non-occupancy-charges-circular-from-government","tag-non-occupancy-charges-court-judgement"],"_links":{"self":[{"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/posts\/9978","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/comments?post=9978"}],"version-history":[{"count":7,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/posts\/9978\/revisions"}],"predecessor-version":[{"id":18697,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/posts\/9978\/revisions\/18697"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/media\/17869"}],"wp:attachment":[{"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/media?parent=9978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/categories?post=9978"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.homebazaar.com\/knowledge\/wp-json\/wp\/v2\/tags?post=9978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}