Maharashtra Housing Society Rules: 12% Penal Interest Cap, 10% Non-Occupancy Charge Limit And Redevelopment Changes
Mumbai, October 1, 2026: The state government has notified a new set of rules governing cooperative housing societies, bringing several provisions relating to maintenance, membership, redevelopment and governance under a clearer statutory framework. However, society members and managing committees are awaiting finalisation of the revised Model Bye-Laws, which are expected to clarify day-to-day…
On October 1, 2026, Maharashtra's state government unveiled revised rules governing cooperative housing societies, introducing a fresh statutory framework for maintenance, membership, redevelopment, and governance. Society members and managing committees are eagerly awaiting the finalized Model Bye-Laws for day-to-day implementation. Published in August, the draft of the revised Model Bye-Laws invited feedback from tenants of cooperative housing societies.
The primary objective of these amended rules is to minimize disputes between society members and managing committees by standardizing issues like maintenance charges, dues recovery, nominations, and redevelopment. Notably, the maximum penal interest on delayed maintenance dues has been reduced from 21% to 12% annually. Non-occupancy charges have also been limited to 10% of service charges. The rules outline distinct methods for calculating maintenance components, such as water charges based on the number of water taps.
The revised rules also allow for virtual participation in certain society meetings, including special general body meetings concerning redevelopment, enabling easier participation for members who may be unable to attend physically. A significant provision addresses succession – a nominee can receive provisional membership and voting rights while legal succession issues are being resolved, aiding societies in tackling membership-related matters post a member's death.
Facilitating self-redevelopment, the rules provide a framework for cooperative housing societies to secure financial assistance for redevelopment projects. Prakash Darekar, president of the Mumbai District Cooperative Housing Society Federation, highlighted that there are approximately 1.27 lakh cooperative housing societies registered in Maharashtra, with 33,200 societies operating in Greater Mumbai.
He emphasized that the new rules have established an independent and self-sufficient legal framework for these housing societies, which serve as the backbone of urban life. Darekar noted that supplementary rules had not been notified for six years, and the new provisions would now provide a statutory basis for various matters, replacing reliance solely on model bye-laws.
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