The Maharashtra government has introduced extensive amendments to the Maharashtra Co-operative Societies Rules, 1961, with a major focus on co-operative housing societies. According to reports from NDTV Profit, the notification lays down a comprehensive framework for the functioning of housing societies across the state. The notification inserts a new Chapter XI-B, covering key aspects such as registration, name reservation, membership, associate and provisional members, nominations, family arrangements, governance, redevelopment, inheritance, recovery proceedings, borrowing limits, funds, levy of charges, and society management. As per The Real News of India, this marks a historic departure where housing societies were merely one category among various co-operative institutions, now receiving an entirely new legal code exclusively for housing societies. On 18 June 2026, the Government of Maharashtra notified the Maharashtra Co-operative Societies (Amendment) Rules, 2026, marking the first dedicated housing society rulebook in the state's legislative history. For the first time, housing societies have their own separate rulebook, separate from the general rules that govern credit societies, agricultural societies, and other co-operative bodies.
The amended rules provide significant financial relief to apartment owners through capped interest rates on delayed maintenance payments at 12% per annum. As reported by NDTV Profit, non-occupancy charges have also been capped at 10% of service charges. The revised framework clarifies contributions towards repair and maintenance funds and debt redemption funds to ensure societies have adequate resources for future repairs and long-term liabilities. According to The Real News of India, the amendments also bring clarity to long-standing issues regarding members' contributions to the repair and maintenance fund and the debt redemption fund, which are intended to ensure that housing societies have adequate resources for major repairs, upkeep, and long-term liabilities. The 2026 Rules make minimum contributions to two core funds a statutory obligation: Sinking Fund — minimum 0.25% per annum of construction cost, and Repair & Maintenance Fund — minimum 0.75% per annum of construction cost, calculated on current replacement cost certified by a registered valuer.
The revised rules introduce video conferencing for General Body Meetings and redevelopment meetings, receiving statutory recognition and bringing societies into the digital era. According to The Real News of India, important meetings, particularly redevelopment meetings, must now be video recorded to improve transparency and reduce future disputes. The 2026 Rules codify GBM procedure that was previously split across the Act, Model Bye-Laws, and Registrar circulars, establishing uniform statutory limits for committee expenditures: ₹1,00,000 for up to 25 members, ₹2,00,000 for 26-100 members, ₹3,00,000 for 101-500 members, ₹4,00,000 for 501-1000 members, and ₹5,00,000 for 1001 members and above. The amendments also introduce a structured process for transferring membership following the death of a flat owner, with societies required to publish notices in local newspapers and display them on notice boards when no nominee comes forward. The rules now formally recognise Co-operative Housing Associations and Associations of Housing Societies, enabling multiple societies to work collectively for common infrastructure, redevelopment and civic issues, while registration procedures have been standardised with defined timelines, prescribed forms and fee structures.
To facilitate self-redevelopment, the government has allowed co-operative housing societies to borrow up to ten times the value of their land. As reported by NDTV Profit, the land valuation must be conducted by valuers empanelled with the lending bank, ensuring a uniform basis for determining borrowing limits. The revised rules also limit non-occupancy charges to 10% of service charges for flat owners who do not reside in their apartments, applying to owners who have rented out their flats or permitted family members to occupy the property. According to The Real News of India, the reforms are likely to accelerate redevelopment across Maharashtra by strengthening member confidence and encouraging timely execution of housing projects. For self-redevelopment specifically, societies may borrow up to 10 times the land's current value as certified by a registered valuer — a much higher limit than the general borrowing cap, reflecting the capital-intensive nature of self-redevelopment projects. The amendments also provide a structured list of permissible charges that societies can collect from members, including service charges, water charges, lift maintenance expenses, parking charges and non-occupancy charges, bringing greater transparency and uniformity to billing practices.
The amendments introduce a significant change to the nomination and succession process for flats in Maharashtra's co-operative housing societies. In the event of a member's death, the nominee can apply for temporary membership by submitting an application along with an indemnity bond, which protects the society against any future claims or disputes. If a member dies without nominating anyone, or if no nominee comes forward, the society must publish a public notice in two widely circulated local newspapers inviting claims from legal heirs. The notice must also be displayed on the society's notice board. In the event of a dispute among legal heirs, the society cannot transfer the deceased member's rights until the claimant submits the requisite legal documents establishing their entitlement. The revised rules also formally recognise Co-operative Housing Associations and Associations of Housing Societies, enabling multiple societies to work collectively for common infrastructure, redevelopment and civic issues, while registration procedures have been standardised with defined timelines, prescribed forms and fee structures. The 2026 Rules mandate a contribution of ₹10 per member per month to the Co-operative Education Fund, alongside annual training sessions: a minimum 3-hour session for all members, and two sessions of at least 3 hours each for committee members and staff.
