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The Maharashtra government has released a draft of updated rules for co-operative housing societies, aiming to simplify governance, enhance transparency, and modernise procedures. Key changes include doubling the registration fee to INR 5,000, equal maintenance charges for all flats, and reduced penal interest on dues from 21% to 12%. A new provisional member category allows nominees of deceased members to vote until ownership is officially transferred. Societies must maintain multiple dedicated funds and can now secure redevelopment loans up to 10 times the land value. Virtual meetings are permitted, and commercial shops gain formal participation rights. The reforms will impact over 1.25 lakh societies statewide.
The Maharashtra government recently released a comprehensive draft of new rules for co-operative housing societies. A similar draft was released back in April for public feedback. The new rules aim to simplify procedures, modernise governance and improve transparency. Advertisement
Under the proposed rules, the registration fee for new housing societies has doubled from INR 2,500 to INR 5,000, reflecting increased administrative and digitisation costs. The process for society name reservation and filling casual vacancies in managing committees has also been simplified.
A new category of 'provisional members' has been introduced, allowing heirs or nominees of deceased members to participate in meetings and exercise voting rights until formal ownership transfer is complete. However, provisional members will not have any right to the title or ownership of the property until the transfer procedure is complete.
Service and maintenance charges will now be uniformly divided among all flats. Earlier it was common to divide it as per carpet area which often led to friction amongst residents. On the other hand, the penal interest on overdue maintenance and other charges has been reduced from 21% to 12% p.a.
Additionally, societies must now maintain multiple dedicated funds: sinking (minimum 0.25% of construction cost), repair and maintenance (0.75%), reserve, major repairs, education & training, and welfare funds.
In a major impetus for self-redevelopment, societies can now avail loans up to 10 times the approved land value for redevelopment, previously restricted to 10 times the value of the society's funds. In addition, all meetings concerning redevelopment such as the developer selection process must be video recorded with at least 51% members in attendance.
In other procedural norms, attendance of Annual General Meetings (AGMs) and other general body meetings can take place virtually with a quorum set at two-thirds of members or 20 members, whichever is lesser. If a quorum is not met, a reconvened meeting can be held within 7 to 30 days without the need for a quorum.
Lastly, commercial shops and premises within societies will be recognized as integral members, ensuring their rightful participation in redevelopment and society affairs.
Maharashtra is said to have a little over 1.25 lac registered co-operative housing societies, with more than 60% existing with the Mumbai Metropolitan Region alone. The state is said to have one of the highest concentrations of societies in the country. However, most of the co-operative societies in Maharashtra are small, with a majority of them having less than 200 members.
The new rules are a step in the right direction. If passed, they will greatly improve the operations and administration of housing societies across the state.
Maharashtra's updated draft rules for co-operative housing societies are a step in the right direction. These reforms reflect a well thought out understanding of the current limitations and future needs. Once implemented, society members can hope for a more transparent and equitable governance.
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