Maharashtra Notifies New Co Operative Housing Society Rules 5 Key Changes Apartment Owners Should Know

In a move expected to affect flat owners in co-operative housing societies across the state, the Maharashtra government has notified amendments to the Maharashtra Co-operative Societies Rules, 1961, introducing a comprehensive regulatory framework for such societies. The revised rules bring greater clarity on maintenance charges, nominations, membership, inheritance, self-redevelopment, governance and financial management, while also streamlining procedures for redeveloping ageing buildings.

They also address long-standing issues related to flat ownership transfers, succession disputes, maintenance billing, parking and the accountability of managing committees.

For apartment owners, the amendments promise greater billing transparency and a lower financial burden through reduced interest on delayed maintenance payments, stronger rights for nominees and heirs, and easier decision-making within housing societies. The reforms are also expected to reduce disputes over maintenance charges, succession, parking and society administration that frequently end up before co-operative courts and registrars.

Here are five things flat owners should know about the new housing society rules introduced by the Maharashtra government.

The amended rules cap the interest on delayed maintenance payments at 12% per annum and fix non-occupancy charges at 10% of service charges, providing relief to apartment owners.

They also bring clarity to long-standing issues regarding members' contributions to the repair and maintenance fund and the debt redemption fund, which are intended to ensure that housing societies have adequate resources for major repairs, upkeep, and long-term liabilities.

Further, the amendments prohibit housing societies from levying arbitrary charges. While the general body may approve additional charges, these must comply with statutory provisions.

The revised rules also provide a structured list of permissible charges that societies can collect from members, including service charges, water charges, lift maintenance expenses, parking charges and non-occupancy charges, bringing greater transparency and uniformity to billing practices.

The amendments introduce a significant change to the nomination and succession process for flats in Maharashtra's co-operative housing societies. In the event of a member's death, the nominee can apply for temporary membership by submitting an application along with an indemnity bond, which protects the society against any future claims or disputes.

If a member dies without nominating anyone, or if no nominee comes forward, the society must publish a public notice in two widely circulated local newspapers inviting claims from legal heirs. The notice must also be displayed on the society's notice board. In the event of a dispute among legal heirs, the society cannot transfer the deceased member's rights until the claimant submits the requisite legal documents establishing their entitlement.

Under the revised rules, flat owners living abroad or elsewhere in the country will no longer be required to attend housing society meetings in person. The Maharashtra government has clarified that they can participate virtually. However, the quorum requirement remains unchanged: attendance by at least two-thirds of the total strength, or 20 members, whichever is higher, remains mandatory.

The Maharashtra government has amended the rules to allow co-operative housing societies undertaking self-redevelopment to borrow up to 10 times the value of their land. The land valuation must be carried out by valuers empanelled with the lending bank, providing a uniform basis for determining the borrowing limit.

Under the revised rules, a housing society can levy non-occupancy charges of up to 10% of the service charges on 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 them.