Big Relief for Maharashtra Housing Societies: New Draft Rules Promise Lower Penalties, More Transparency & Digital Participation
In a move poised to benefit over 1.25 lakh cooperative housing societies across Maharashtra, the state government is set to notify a fresh set of draft rules within the next two weeks. These amendments aim to bring relief to residents, improve transparency, and give societies greater autonomy in decision-making.
Lower Interest on Pending Dues
One of the most resident-friendly proposals is to reduce the punitive interest on unpaid maintenance dues from 21% to 12%. For many families, this change brings significant financial relief.
“That 21% felt like a punishment. For pensioners like me, it was impossible to keep up,” said Meera Patil, a retired teacher from Kothrud. Sandeep Gokhale from Baner noted how earlier penalties often spiraled into major debts, while Neha Bhosale from Wakad shared that the lower rate now offers her a realistic chance to clear pending dues.
Transparency and Flexibility in Redevelopment
Redevelopment — a major source of disputes — will now see new safeguards. Societies will be allowed to raise loans up to 10 times the government-assessed land value for self-redevelopment. All redevelopment meetings must be video recorded to ensure accountability.
The draft also proposes hybrid AGMs, letting members join either online or in person, making participation easier in the post-pandemic era.
If an AGM is dissolved due to low attendance, a reconvened meeting can proceed without quorum. The initial quorum itself has been relaxed: either 20 members or two-thirds of the total strength, whichever is lower.
New Categories Recognized
Acknowledging today’s mixed-use buildings, the draft introduces “premises societies,” formally including commercial members in decisions such as redevelopment. It also creates “provisional members” — nominees of deceased owners who can participate and vote until legal transfer of ownership is complete.
Standardized Funds and Fair Charges
To ensure proper upkeep, societies must collect at least 0.25% of construction cost for a sinking fund and 0.75% for repair and maintenance annually. Common service charges will be divided equally, while water charges will reflect actual use based on the number of taps in each flat.
Making Practices Legally Binding
Many of these measures were earlier only model by-laws that societies could choose to adopt. Once notified, they will become mandatory, requiring societies to update their by-laws accordingly.
“Penalties should deter, not generate revenue,” stated Kiran Sonawane, Deputy Registrar involved in drafting the rules. “These changes reduce dependency on government and empower societies to manage better.”
Shaped by Consultations
The draft, which updates the Maharashtra Cooperative Societies (MCS) Rules, 1961, is the result of extensive discussions led by the Cooperation Commissioner’s office along with the Maharashtra State Cooperative Housing Federation. Advocate Shreeprasad Parab, a legal expert involved in the process, called it a “forward-thinking shift rooted in real-world challenges.”
Once cleared by the Law and Judiciary Department, the rules will be formally notified, potentially transforming daily life for over two crore residents across the state — making housing society living not only more efficient but also fairer and more humane.
