The Maharashtra government has introduced extensive amendments to the Maharashtra Co-operative Societies Rules, 1961, with a major focus on co-operative housing societies. The notification lays down a comprehensive framework for the functioning of the housing societies across the state.
The notification inserts a new Chapter XI-B, covering key aspects such as registration, name reservation, membership, associate and provisional members, nominations, family arrangements, governance, redevelopment, inheritance, recovery proceedings, borrowing limits, funds, levy of charges, and society management.
The revised rules also recognise joint and provisional members, prescribe new registration procedures and forms, and streamline the transfer of membership after a member's death.
The reforms are expected to improve transparency, strengthen the rights of apartment owners and reduce disputes relating to maintenance billing, succession, parking and housing society administration.
Here are five major changes introduced by the Maharashtra government that flat owners should know:
1. Delayed maintenance interest capped at 12%; arbitrary charges barred
The amended rules cap the interest on delayed maintenance payments at 12% per annum, offering relief to apartment owners. Non-occupancy charges have also been capped at 10% of service charges.
The revised framework also clarifies contributions towards repair and maintenance funds and debt redemption funds to ensure societies have adequate resources for future repairs and long-term liabilities.
Moreover, housing societies will no longer be permitted to levy arbitrary charges. Any additional charges approved by the general body must comply with statutory provisions. The rules also specify the categories of charges societies can collect, including service charges, water charges, lift maintenance expenses, parking fees and non-occupancy charges.
2. Nomination and succession process simplified
The amendments introduce a structured process for transferring membership following the death of a flat owner.
A nominee can seek temporary membership by submitting an application along with an indemnity bond to safeguard the society against future claims.
If no nominee has been appointed or no nominee comes forward, the society must publish a notice in two widely circulated local newspapers and display it on the society's notice board inviting claims from legal heirs. Where succession is disputed, the society cannot transfer the deceased member's rights until the claimant produces the necessary legal documents.
3. Virtual participation in society meetings permitted
Under the revised rules, flat owners residing outside their housing society, including those living abroad, can attend society meetings virtually.
However, the quorum requirement remains unchanged. Attendance by at least two-thirds of the total strength of the society or 20 members, whichever is higher, will continue to be mandatory for meetings.
4. Housing Societies To Borrow 10x Land Value For Self-Redevelopment
To facilitate self-redevelopment, the government has allowed co-operative housing societies to borrow up to ten times the value of their land.
The land valuation must be conducted by valuers empanelled with the lending bank, ensuring a uniform basis for determining borrowing limits.
5. Non-Occupancy Charges Capped at 10% Of Service Charges
The revised rules limit non-occupancy charges to 10% of service charges for flat owners who do not reside in their apartments. The provision applies to owners who have rented out their flats or permitted family members to occupy the property.
The amendments also replace or delete several outdated rules and forms to align the regulatory framework with recent changes to the Maharashtra Co-operative Societies Act.
The government expects the reforms to make housing society administration more transparent, reduce litigation and provide greater certainty for apartment owners across the state.
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