Maharashtra Govt Updates Cooperative Housing Society Rules; Higher Loan Limit For Self- Redevelopment, Faster Dues Recovery

Pune, July 1, 2026: The Maharashtra Government has notified the Maharashtra Cooperative Societies (Amendment) Rules, 2026, introducing a comprehensive set of reforms aimed at improving transparency in the functioning of cooperative housing societies and strengthening the legal framework for the recovery of outstanding dues. The new rules, implemented by the Cooperation Department, are expected to significantly streamline society administration while giving a major boost to self-redevelopment projects across the state.

One of the most significant provisions in the new rules allows cooperative housing societies undertaking self-redevelopment to avail loans of up to 10 times the total value of the land, based on the valuation report prepared by a government-approved valuer. This is expected to provide substantial financial support to thousands of housing societies awaiting redevelopment.

Key Highlights of the Maharashtra Cooperative Societies (Amendment) Rules, 2026

1. Introduction of New Member Categories

The amendment revises the principal rules by introducing two new categories of members—Joint Members and Temporary Members—in addition to the existing Nominal Members and Associate Members.

2. Name Reservation and Opening of Bank Accounts

Proposed cooperative housing societies will now be required to submit an application in Form Y-1 to the Registrar for reservation of the society’s name and permission to open a bank account. The Registrar must dispose of such applications within 30 days.

3. Revised Registration Fees

The registration fees have been revised as follows:

* Societies with up to 25 flats: ₹2,500

* 26 to 50 flats: ₹5,000

* 51 to 250 flats: ₹7,500

* More than 250 flats: ₹10,000

For societies established under schemes meant for Backward Classes and the Lok Awas Yojana, the registration fee has been fixed at ₹50.

4. Temporary Membership and Recording of Legal Heirs

In the event of the death of a society member, the nominated individual will be granted Temporary Membership through Form Y-4 along with an indemnity bond until the legal heirs are officially recorded.

However, such temporary members will not have ownership rights over the property nor will they be entitled to have their names entered on the share certificate. For transfer of membership based on a registered family arrangement, Form Y-5 has been prescribed.

5. Recovery of Outstanding Maintenance and Other Dues

For recovery of unpaid maintenance charges or other outstanding dues, societies may file an application before the Registrar under Section 154B-29 using Form Y-6, along with a court fee of ₹100.

After hearing both parties, the Registrar may issue a Recovery Certificate in Form Y-7, enabling recovery of the dues in the same manner as arrears of land revenue.

6. Limits on Repair Expenditure

The management committee has been empowered to sanction repair expenditure in a single instance during a financial year as follows:

* Up to ₹1 lakh for societies having up to 25 members.

* Up to ₹5 lakh for large societies having more than 1,000 members.

Deepak Taware, Cooperation Commissioner and Registrar, Maharashtra State, said the Cooperation Department has implemented the Amendment Rules, 2026 to bring greater transparency in the management of cooperative housing societies across Maharashtra.

“These new rules will ensure greater transparency in the functioning of housing societies. They will also accelerate the processes of recovery of outstanding dues and redevelopment while bringing greater legal discipline to society administration,” he said.

Federation Welcomes Reforms

Suhas Patwardhan, President of the Maharashtra State Cooperative Housing and Apartments Federation, welcomed the long-awaited rules implementing the amendments introduced through the 2019 Ordinance.

He noted that the announcement coincides with the celebration of Cooperation Week, being observed on the occasion of the fifth anniversary of the Union Ministry of Cooperation.

“The new rules announced during Cooperation Week have brought several positive developments for the housing sector. On behalf of the Federation, we thank the State Government for introducing these reforms. We also urge the Government to grant notified status to the Maharashtra State Cooperative Housing and Apartments Federation,” Patwardhan said.