Maharashtra's New Housing Society Rules: 5 Key Highlights
The Maharashtra government has proposed new rules for cooperative housing societies, which include lowering interest on member dues, easing redevelopment financing, and modernizing meeting protocols. These changes aim to simplify regulations and reduce bureaucratic involvement.
MaharashtraHousing SocietyRedevelopmentInterest RatesMaintenance FeesReal Estate MumbaiJun 22, 2025
Here are five key highlights from the draft rules for Cooperative Housing Societies:
1) Lower interest on dues
Maharashtra's draft rules propose reducing the interest on members’ outstanding dues from 21% to 12%, significantly easing residents' financial burden. This move is expected to provide relief to many homeowners who often struggle with high-interest payments.
2) Easing redevelopment financing
The draft rules allow co-operative housing societies to raise loans up to 10 times the land cost for redevelopment. This provision will support self-redevelopment or improved negotiations with builders, making the process more financially viable for housing societies.
3) Modernising meeting protocols
The draft proposes that annual general meetings (AGM) may incorporate virtual participation, with a quorum set at two-thirds attendance or 20 members (whichever is lower). Decisions will require a simple majority (51%), and virtual meetings must be video-recorded if they are for redevelopment. This modernization will make it easier for members to participate and ensure transparency in decision-making.
4) Empowering heirs/nominees
The draft introduces a new category called “provisional members,” allowing nominees to exercise voting rights after a member's death, even before the ownership is formally transferred. This provision ensures that the rights of nominees are protected and that the society can continue to function smoothly.
5) Standardise charge collection and funds
According to the Maharashtra government’s draft, common service charges will be equally divided among all flats, while water charges will be calculated based on the number of taps. The draft also mandates annual contributions to include a sinking fund of at least 0.25% and a repair and maintenance fund of 0.75% of the building's construction cost. This standardization will ensure fair and transparent financial management within housing societies.
Kiran Sonawane, deputy registrar of Maharashtra, told the Hindustan Times, “We will finalise the rules by incorporating the suggestions and objections in eight days, after which the draft will go to the principal secretary of the cooperation department. Once the rules are vetted by the law and the judiciary department, they will be notified. Many clauses, such as charges of sinking repair funds, were in the bylaws, but by bringing them into the rules, we have given them legal sanctity. Once the rules are finalised, we will reframe the bylaws to simplify them.”
These proposed changes are expected to bring a significant improvement in the functioning of cooperative housing societies in Maharashtra, making them more efficient and transparent.
Frequently Asked Questions
What is the proposed reduction in interest on member dues?
The draft rules propose reducing the interest on members’ outstanding dues from 21% to 12%.
How much can housing societies borrow for redevelopment?
Cooperative housing societies may be allowed to raise loans up to 10 times the land cost for redevelopment.
What are the new meeting protocols for annual general meetings?
Annual general meetings may incorporate virtual participation, with a quorum set at two-thirds attendance or 20 members (whichever is lower). Decisions require a simple majority (51%).
What is the new category introduced for nominees?
The draft introduces a new category called “provisional members,” allowing nominees to exercise voting rights after a member's death, even before the ownership is formally transferred.
What are the standardized charges and funds mandated by the draft?
Common service charges will be equally divided among all flats, while water charges will be calculated based on the number of taps. Annual contributions must include a sinking fund of at least 0.25% and a repair and maintenance fund of 0.75% of the building's construction cost.
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