Maharashtra Govt Proposes Key Housing Society Reforms: Lower Interest On Dues, Online AGMs, And New Rights For Heirs
Big Relief: Housing Societies Cannot Charge Extra Fees from Owners Renting Out Flats Beyond Non-occupancy Charges. ( Representational Image )
Mumbai, June 24, 2025: In a major move towards streamlining housing society governance, the Maharashtra government has released a draft of revised cooperative housing society rules, inviting public feedback before final implementation. The proposed reforms aim to enhance transparency, encourage member participation, and address long-standing concerns in housing society operations.
Key Proposals:
- Heirs Can Join Meetings: The draft allows nominees or legal heirs of deceased flat owners to attend society meetings as provisional members until ownership is officially transferred. However, voting rights will only be granted upon legal confirmation of ownership.
- Online Participation in AGMs: Members may now attend annual general meetings virtually, a step towards inclusivity and convenience. The existing quorum rule remains—20 members or two-thirds of total members, whichever is fewer.
- Reduced Interest on Dues:Â Penal interest on unpaid dues will be slashed from 21% to 12% per annum, providing financial relief to members facing delays.
- Fair Cost Distribution:Â Service charges must be equally divided among all flats. Water charges will depend on the number of taps in each unit.
- Funds and Redevelopment:Â Societies will be mandated to maintain a sinking fund (minimum 0.25% annually) and a repair fund (0.75% of the construction cost). Societies can also raise redevelopment loans up to 10 times the land cost.
- Stricter Redevelopment Norms: Key redevelopment decisions will require the approval of 51% of total members (including online participants). Rules also require a 14-day meeting notice, videography of discussions, and the presence of a registrar’s representative during builder selection.
- Simplified Administration: Managing committees can now approve one-time expenditures up to ₹3 lakh without general body consent and fill casual vacancies without registrar approval.
- Recognition of Commercial Units:Â Commercial premises like shops and offices in mixed-use buildings will now have an equal say in redevelopment and maintenance decisions.
The government is currently seeking suggestions and objections from stakeholders. Experts believe these changes, if implemented effectively, could bring greater professionalism, inclusivity, and clarity to cooperative housing society management across Maharashtra.
