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Maharashtra has amended the Maharashtra Co-operative Societies Rules, 1961, introducing a range of changes affecting cooperative housing societies and flat owners across the state. The amended Rules, which came into force on June 18, reduce the minimum number of members required to form a housing society from 10 to five and make government-approved model bylaws automatically binding. They also provide voting rights to nominees admitted as provisional members, cap non-occupancy charges at 10% of service charges, reduce penal interest on delayed maintenance from 21% to 12%, and allow general body and redevelopment meetings to be held through video conferencing.
The Maharashtra government has amended the Maharashtra Co-operative Societies Rules, 1961, introducing new provisions governing cooperative housing societies across the state, with the changes coming into force on June 18. The amendments affect society formation, maintenance charges, succession, parking, meetings and self-redevelopment, and are expected to apply to housing societies across Mumbai, the Mumbai Metropolitan Region (MMR) and other parts of Maharashtra.
One of the key changes reduces the minimum number of members required to form a cooperative housing society from 10 to five. The amended Rules also introduce a formal name reservation process for proposed societies and prescribe a procedure for admitting specified relatives as associate members on the recommendation of the original member.
The Rules have also established greater uniformity in society administration by making government-approved model bylaws automatically binding on cooperative housing societies across Maharashtra, irrespective of whether an individual society has formally adopted them. Societies have also been prohibited from collecting charges that are not specifically authorised under the Rules.
Succession-related provisions have been revised as well. A nominee of a deceased member can now be admitted as a provisional member with voting rights until regular membership is granted. Where a member dies without making a nomination, the society must publish notices in two newspapers inviting claims from legal heirs before transferring membership. The changes are intended to provide a more uniform process for succession and reduce disputes over membership.
The amended Rules also address parking and participation in society meetings. Parking allotments will be decided by the general body, rather than being left solely to the managing committee. Annual general meetings and special general meetings, including meetings convened for redevelopment proposals, can now be conducted through video conferencing, allowing members who are living outside the society or elsewhere to participate remotely.
The financial provisions introduce changes to how maintenance and other charges are calculated. Service charges must be recovered uniformly from members irrespective of the size of their flats, while water charges will be based on the number of taps in each flat. Non-occupancy charges have been capped at 10% of service charges. The maximum penal interest on delayed maintenance payments has also been reduced from 21% to 12% per annum.
The Rules further require societies to maintain a Sinking Fund of at least 0.25% and a Repair and Maintenance Fund of at least 0.75% of the construction cost certified by an architect at the time of construction. They also prescribe ceilings for annual maintenance expenditure, including audit fees, based on the size of the society.
Self-redevelopment has received a separate financial provision. Societies undertaking self-development or self-redevelopment can borrow from banks and financial institutions up to 10 times the government-approved value of the land, potentially providing societies with a defined route to project finance.
The amendments also extend key housing society provisions to societies having commercial premises and housing associations, while revising registration fees payable to the Cooperation Department according to the size of the society. Taken together, the changes establish revised requirements for governance, financial management, membership and redevelopment across Maharashtra's cooperative housing sector.
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