Maharashtra- New Draft Rules for Co-op Housing Societies

Recently, The Maharashtra government released a draft on new rules for cooperative housing societies, proposing several key reforms. These include reducing the interest on members’ dues, easing redevelopment financing, modernizing meeting protocols, and empowering heirs/nominees. The draft rules are presently open for public consultations and citizens to provide feedback .

Here are key proposals

• Reduced Interest on dues- The interest rate on outstanding dues from members will be lowered from 21% to 12%, which will be in the form of simple interest.—– In my opinion this is a welcome move as interest of 21% was too high.
• Easier Redevelopment Financing- Societies undergoing to take self redevelopment will be now permitted to borrow ten times the value of their land.—– This will encourage societies to go in for self redevelopment.
• Standardized Maintenance Charges- Common service charges will be divided equally among all members, and not on the basis of square feet area occupied.—- This is in my opinion is unfair to occupant of small flats, can you imagine a flat which is having area of say 400 sq feet and having 3 occupants paying the same common charges against the flat having 1500 sq feet area with 6 occupants?

Water charges will be calculated based on the number of taps in each flat.

• Societies will be required to maintain separate funds for various purposes like reserve, sinking, major repairs, education and cultural activities. Sinking fund should be maintained@ 0.25% and repair and maintenance fund @ 0.75% of the construction cost, on annual basis.
• Online participating is now permitted in general body meetings, enhancing accessibility and engagement. Still a quorum of two-thirds or 20 members, whichever is less will be mandatory. If a meeting is adjourned due to lack of quorum, it can be reconvened within 7-30 days without requiring quorum.— A welcome step of online participation in the meetings
• A meeting for redevelopment approvals-will need to be passed by at least 51% of the total membership, including virtual attendees. For redevelopment meetings, videography is now mandatory, and selection of builder or contractor will require a 14-day notice, quorum, a registrar’s representative and majority approval.
• Empowering Heirs/Nominees- Nominees of deceased flat owners will be able to participate as “provisional members’ in society meetings until former ownership is transferred.—- A welcome step.
• Increased Registration fees- The registration fees for new societies will likely to double from Rs 2500 to Rs 5000.
• Streamlines Succession- Rules for property transfers through family settlement deeds and nominee admission process will be clarified.
• Formal Name Reservation- A formal procedure for society name reservation will be introduced.
• It is compulsory for all societies to adopt the model bye-laws published by the Registrar, ensuring uniformity in governance.
• A non-occupancy charge of 10% of the service charges will be applicable, if the flat is not occupied by the owner.

Friends, these rules for the housing societies will be applicable only in the state of Maharashtra. I think similar rules will be there in other states also for housing societies. Readers of this blog who are from other states in India, can enlighten me whether similar rules are applicable in your state also, or if there are any other rules also. You can write about the same in the comments column at the end of the blog.

Waiting for your feedback on this blog.

Anil Malik

Mumbai, India

23^rd June 2025