The Maharashtra government has notified significant amendments to the Maharashtra Co-operative Societies Rules, 1961, introducing a series of reforms aimed at improving governance, financial transparency, self-redevelopment and the day-to-day functioning of cooperative housing societies across the state.
The revised rules are expected to benefit lakhs of apartment owners by simplifying maintenance charges, reducing penalties on delayed payments, strengthening nominee rights and making society administration more transparent.
One of the key changes is the reduction in the maximum interest that societies can levy on delayed maintenance payments from 21% per annum to 12%, easing the financial burden on members who temporarily default.
The amendments also standardise the method of calculating maintenance charges. Service charges will now be shared equally by all members, irrespective of apartment size, while water charges will be based on the number of taps installed in each flat. Additionally, non-occupancy charges for rented properties cannot exceed 10% of the service charges.
To reduce disputes over parking, the rules specify that allotment decisions will now rest with the society’s general body rather than solely with the managing committee.
The revised framework also strengthens financial discipline by clearly defining the charges societies are permitted to collect, including service, water, parking, repair and maintenance, and non-occupancy charges. Any additional levies must be approved within the legal framework.
To ensure adequate funds for future repairs, societies must contribute at least 0.25% of the construction cost annually to the sinking fund and 0.75% to the repair and maintenance fund.
In a major boost for self-redevelopment, housing societies will now be permitted to borrow up to ten times the value of their land, based on valuations by empanelled bank valuers.
The amendments also streamline succession procedures. If a member dies without a nominee, societies must publish notices in two widely circulated local newspapers inviting claims from legal heirs. Pending legal succession, nominees may be granted provisional membership and voting rights after submitting the required indemnity bond, wherever applicable.
The government has also formally recognised premises societies and permitted redevelopment-related special general body meetings to be conducted virtually, subject to quorum and record-keeping requirements.
The revised rules further increase society registration fees from Rs 2,000 to Rs 5,000 and prescribe annual expenditure limits based on the size of the society to strengthen accountability and improve cooperative housing governance across Maharashtra.
Source: The Times of India
