written by | May 13, 2022

No Objection Certificate- Importance and Format

No Objection Certificate is an official document issued by the local Regional Transport Office (RTO). It allows the vehicle to be re-registered with another RTO in another state. It also certifies that the vehicle is free from pending tax dues. You may see that documents require a "No Objection letter/Certificate", i.e.,  a NOC letter or just a NOC. Many applicants have difficulty meeting this requirement. It is not because it is difficult to obtain. Rather it is because many applicants don't know what it is.

To cancel the NOC, you’ll have to get a Non-Usage Certificate from the RTO stating that you've not registered the vehicle there. Non Usage certificate is RTO’s official statement stating that you've not re-registered your vehicle in that state. You need to carry out a 4-step process for NOC cancellation. Read the overview of the No Objection Certificate below.

Did You Know?

A NOC submitted to the credit bureaus ensures a healthy credit score as it helps clear any future discrepancies and legal hassles regarding repayment of the loan.

An Overview of No Objection Certificate

A NOC is a declaration of consent that allows a person or company to move forward with the construction or purchase of the property. A No Objection Certificate (NOC) is a must-have obtained from the relevant government authorities before constructing any apartment, bungalow, or other structure.

Without a NOC, the property will be subject to legal hardships. Different authorities require different No Objection Certificates for various property transactions. It is essential to understand the importance of the NOC letter, which has been discussed below.

Also Read: Format and Requirements of Consent Letter For GST Registration

Importance of NOC Letter

The NOC is among the essential legal documents required while purchasing or selling a property. A NOC is issued to clarify that the building doesn't follow any violation of the guidelines implemented by an agency, organisation, or institute. It is a brief guide to the distinctive types of NOCs you require before making a property transaction.

Where Can I Use NOC?

  • A mortgage does not require a mortgage NOC.

Developers usually borrow money from banks and other financial institutions to complete their projects, and they also often mortgage them to secure financing. It is crucial to request a NOC from the developer in such situations. Once you receive the NOC, the bank cannot challenge the property transaction about a mortgaged project.

  • A builder or society does not require a NOC.

A NOC must be obtained from either the society owning the apartment or the builder who constructed it before you bought it. A NOC is necessary to ensure that no fees are owed by the seller when the property is disposed of. This document is proof that you will be accepted as a member. If a property transaction includes a loan from a bank, a NOC must be presented, and the bank will not issue a NOC to society for the transfer of an apartment.

  • RERA does not require a No Objection Certificate.

Section 15 of the Real Estate Regulation Authority (RERA) requires that a developer transfers his liabilities and rights to another party. They must obtain a NOC at least from 2/3rds of the allottees. The RERA command provides the same certificate after the allottees get the certification.

  • No Objection Certificate from court by the administrator

In Section 307 of the Indian Succession Act 1925, they stated that an administrator can't transfer, mortgage, or sell property that they can't move without the court's permission. Also, you can't lease such properties for more than 5 years without permission from the administrator. Any urban evolution authority, or any other authority, will not issue a No Objection Certificate to the building which has violated the construction bylaws. After thorough, fair and transparent inspections, authorities will issue NOC.

  • Collector issues a No Objection Certificate

It's necessary for a few states that the Collector issues the NOC before you transfer the property. This is necessary in cases where corporations or development authorities lease their lands. The lease documents require that the lessor inform the collector about the transfer or mortgaging and obtain a No Objection Certificate. 

No Objection Letter Format

It is very easy to create a NOC for a visa, and it doesn't have to be lengthy or complex. The message must state that the university or company has no objection to their student or employee getting a Schengen visa for travel. This shows the visa application centres that the university or company trusts you will return to fulfil your obligations.

The following elements make up a simple NOC:

  • Address of the Visa Application Centre
  • Date of the letter's writing
  • Name of student/employee
  • Contact information and address of academic adviser/supervisor
  • Name of academic adviser/supervisor
  • The paragraph in which the university or company has no objections regarding the travel.

How to Issue a NOC?

The No Objection Certificate in India is a legal document that authorities issue according to the purpose, such as:

  • Offer
  • Trade
  • Business deals/transactions
  • If applicable, income tax
  • Apply for passport
  • Schools and colleges may request permission from parents or higher officials to perform certain tasks on a smaller scale.

NOC is Important for Vehicle Immigration

You must re-register your vehicle in the new place if you plan on moving your vehicle from one city to another. You don't have to re-register your vehicle if you move it for less than 3 months. However, registrations for longer periods are mandatory.

A No Objection Certificate from your local, regional transport office (RTO) is crucial for the registration process. The NOC is necessary for vehicle registration and states that the vehicle has not been subject to traffic or dues violations. You must present the document at the time of vehicle re-registration.

What are the Consequences of Not Acquiring NOC?

  • Credit scores can be severely affected. It is possible that you will not be eligible to receive future loans.
  • Emotionally, you feel exhausted and may experience panic attacks. You will also feel tired because of the emotional turmoil.
  • Lenders may sue you if there is no evidence.
  • Due to lack of evidence, you may be asked for the amount you have already paid. This is a waste of time that will require more effort.

Also Read: How To Get A Business License In India?

What Is the Application Process?

Here we explain to you the procedure to apply for a NOC. You don't need to worry because there are hardly any complications.

  • You must submit the form CMV 28 along with all necessary documents.
  • To submit the No Objection Certificate application, the applicant must visit the nearest RTO.
  • You will need to pay ₹100.
  • If there are no pending issues, a clearing receipt is issued.
  • The RTO receives a police report on the traffic and legal violations against the vehicle after you apply.
  • The RTO takes three days to provide the No objection certificate after approval.

Here is a list of documents you need to submit with your NOC certificate application:

  • You must submit proof of address and identity for the vehicle owner.
  • Registration certificate
  • Permit certificate
  • Certificate of insurance
  • PUC (pollution under control) certificate

You can either download a No Objection Certificate or create your own.

Validity of the NOC

The No Objection Certificate you can download, submit, or issue. It is valid for 6 months, after which the individual must complete the registration. You can't get the NOC if you fail to register, and you must follow the same process if you are selling your vehicle.

Conclusion

Not only is the NOC necessary to move a vehicle between states, but it is also vital when you sell a vehicle to someone who plans to transport it to another state. In India, interstate vehicle transfers are a bit complicated, and many agencies and vehicle transport firms can assist you in learning more about these procedures. 

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FAQs

Q: Can I get a loan without NOC?

Ans:

A NOC letter is vital for your credit score, and not having a NOC for your previous loan adversely affects your credit score. Also, approving another will be very tough for you and, in some cases, impossible.

Q: How should I write a No Objection Letter?

Ans:

Here's the No Objection Certificate format:

  • Date of letter writing
  • Visa Application Center's Address
  • Name of student/employee
  • Name of academic/supervisor adviser
  • Contact information and address of academic/supervisor adviser
  • A paragraph stating that the university/company has no objections to the travel

Q: Why is the NOC letter important?

Ans:

A NOC is a vital document that ensures there are no tax dues on the vehicle.

Q: What is a NOC certificate?

Ans:

A NOC is a legal document issued to claim that the issuer has no objection to whatever terms are mentioned in the document.

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