Maharashtra Unveils New Draft Rules for Cooperative Housing Societies
The Maharashtra government has released a fresh draft of cooperative housing society rules, aiming to enhance governance, transparency, and inclusivity. Key reforms include provisions for heirs, virtual AGMs, and financial reforms.
Cooperative HousingMaharashtraHeirsFinancial ReformsRedevelopmentReal Estate NewsJun 23, 2025
One significant proposal allows the heirs or nominees of deceased flat owners to participate in general body meetings as “provisional members” until formal ownership is established. However, such members would not be allowed to vote until their legal status as owners is confirmed.
The draft rules, open for public suggestions and objections, also permit virtual attendance at annual general meetings (AGMs) to encourage wider member participation. Despite this digital push, the traditional quorum requirement—either 20 members or two-thirds of the total members, whichever is fewer—remains unchanged. If quorum is not met, a reconvened meeting can be held within 7 to 30 days without requiring a quorum.
“This move recognises modern challenges of participation and aims to balance tradition with technology,” said an official from the Maharashtra cooperative department.
Among financial reforms, the draft reduces the penal interest rate on unpaid dues from 21% to 12% per annum, offering major relief to members facing delays in payments. Societies will also be empowered to raise loans of up to ten times the land cost for redevelopment purposes.
To ensure fairness in cost sharing, common service charges will now have to be divided equally among all flats, while water charges will be calculated based on the number of taps in each unit. Additionally, societies will be required to maintain a sinking fund (at least 0.25% annually) and a repair and maintenance fund (0.75% of construction cost annually).
Key decisions during AGMs, such as those related to building redevelopment, will now require the approval of at least 51% of the total membership, including online participants. The redevelopment process has also been tightened — requiring a 14-day notice, mandatory videography of meetings, and the presence of a registrar’s representative during selection of a builder or contractor.
“There have been complaints of irregularities during redevelopment approvals. These measures aim to enhance transparency and reduce disputes,” said housing rights advocate Meena Karmarkar.
In a move to improve financial autonomy, managing committees will now be allowed to approve one-time expenditures of up to ₹3 lakh without needing general body consent. Meanwhile, the draft also simplifies recovery procedures for dues, potentially saving societies time and litigation costs.
The proposal extends recognition to commercial units by including “premises societies” in the rulebook. This change would allow shops and offices to enjoy equal say in redevelopment and maintenance-related decisions, a long-standing demand from mixed-use building owners.
Further, societies will be allowed to fill casual vacancies in the managing committee without seeking the registrar’s permission, reducing administrative bottlenecks.
With stakeholder feedback currently being invited, the final version of these rules is expected to be notified later this year. Housing experts believe that, if implemented well, the revised framework could bring greater professionalism and clarity to cooperative housing management across the state.
Frequently Asked Questions
What are the new rights proposed for heirs in the draft rules?
The draft rules propose that heirs or nominees of deceased flat owners can participate in general body meetings as ‘provisional members’ until formal ownership is established. However, they will not be allowed to vote until their legal status as owners is confirmed.
Can members attend AGMs virtually?
Yes, the draft rules permit virtual attendance at annual general meetings (AGMs) to encourage wider member participation. However, the traditional quorum requirement remains unchanged.
What financial reforms are included in the draft rules?
The draft reduces the penal interest rate on unpaid dues from 21% to 12% per annum. Societies will also be empowered to raise loans of up to ten times the land cost for redevelopment purposes.
How will cost sharing for common services and water be managed?
Common service charges will be divided equally among all flats, while water charges will be calculated based on the number of taps in each unit. Societies will also be required to maintain a sinking fund and a repair and maintenance fund.
What changes are proposed for managing committee vacancies?
Societies will be allowed to fill casual vacancies in the managing committee without seeking the registrar’s permission, reducing administrative bottlenecks.
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