Pravin From Thane want legal help in Property / Ancestral Property / Will

I belong to a housing society in Mira Road. A restaurant owner in our society has illegally encroached common area of our society premises. Our society has written to all municipal authorities including municipal commissioner, but no action has been taken so far. Now, the restaurant owner has sold his property and the buyer is asking for an NOC from the society (for loan purposes). We have also received a letter from Deputy Registrar to issue to NOC. However, the members of the society are not in favour of issuing NOC as the seller has not removed his encroachment. 1) Can the society refuse to give NOC on the grounds of encroachment 2) If yes, can the society mention this and reply accordingly to the Deputy Registrar and mention encroachment as reason for denying NOC? 3) Will this create any personal liability on the office bearers of the society ? 4) If the society issues an NOC, what are the legal options available to the society against the illegal encroachment ?