A comprehensive set of draft rules designed to modernise the functioning of cooperative housing societies in Maharashtra has been prepared by the state government and is awaiting final clearance. The move is expected to enhance administrative autonomy, simplify society operations, and reduce the need for government intervention.
As part of the proposed changes, the interest rate charged on overdue payments by members has been recommended for reduction from the current 21% to 12%. Provisions have also been made to permit cooperative societies to avail loans up to ten times the land cost for redevelopment purposes. These changes are expected to facilitate smoother redevelopment and ease financial constraints faced by societies.
Virtual participation in Annual General Meetings (AGMs) has been included in the draft, provided a minimum attendance of two-thirds of members or 20 members—whichever is fewer—is ensured. If quorum is not met, a follow-up meeting may be held between 7 and 30 days later without the need for quorum. It has been mandated that 51% of total members must approve resolutions, regardless of whether they are present in person or online. In cases involving redevelopment, video recording of the meeting has been made compulsory.
According to officials, Maharashtra is home to approximately 1.25 lakh housing societies, accounting for more than 20 million members—around 70% of whom reside in the Mumbai Metropolitan Region. The inclusion of commercial premises within the cooperative society framework has been proposed, granting such entities a rightful stake in redevelopment projects. A new category of ‘provisional members’ has been created to ensure nominees are granted temporary voting and participation rights following the death of a member, until legal succession is finalised.
It has been clarified that although legal heirs may be given provisional membership, ownership of the property will not be transferred unless the official title transfer procedure is completed. Additional rules outline that common service charges are to be divided equally among all flats, while water charges will be based on the number of taps. Annual collections have been prescribed for sinking funds and maintenance at minimum rates of 0.25% and 0.75% of construction cost, respectively.
The Deputy Registrar, Kiran Sonawane, confirmed that finalisation of the rules is underway and that the draft will soon be forwarded for legal vetting and notification. He stated that by giving statutory backing to previously ambiguous by-laws, greater legal clarity and operational ease can be achieved. Feedback has been received from less than 100 stakeholders, including society federations, valuers, and architects. Experts believe that these new rules could bring about a transparent, structured, and more empowered housing society system across the state.
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