June 23, 2025: Heirs of deceased cooperative housing society members may soon be allowed to attend general body meetings as provisional members or nominees, as per new draft rules released for public consultation. However, these individuals will not possess voting rights until they legally establish ownership of the property.
In a progressive step towards digital governance, the draft permits virtual participation in annual general meetings (AGMs). Despite this, a quorum of either two-thirds or 20 members—whichever is lower—remains mandatory. Should a meeting be adjourned due to lack of quorum, it may be reconvened within 7 to 30 days without the same requirement.
The proposed rules also call for equal distribution of common service charges across all flats, while water charges are to be calculated based on the number of taps in each unit. Housing societies must maintain a sinking fund at a minimum rate of 0.25% and a repair fund at 0.75% of the building’s construction cost, collected annually.
Crucial decisions, including those concerning redevelopment, will require the approval of at least 51% of the total membership, including those attending virtually. Videography of redevelopment meetings is now compulsory, and builder selection will need 14 days’ notice, quorum presence, registrar attendance, and majority approval.
Among key financial reforms is the reduction of interest rates on members’ dues from 21% to 12%. Societies may now raise loans up to 10 times the land cost for redevelopment. Managing committees can approve one-time expenses up to Rs 3 lakh without general body consent.
The draft also allows commercial premises to be formally recognised within societies, granting them redevelopment entitlements. Additionally, societies can fill casual vacancies in managing committees without needing registrar approval.
Source: Times Of India
