For most flat owners in Mumbai, the co-operative housing society is part of daily life. It is also a common source of disputes: a society that sits on a transfer application, demands a “development fund” before admitting a buyer, refuses an NOC, or levies heavy charges on rented flats. The Maharashtra Co-operative Societies Act, 1960, the Rules and the model bye-laws set clear limits. This guide explains them.
Updated for the 2026 rules: under the Maharashtra Co-operative Societies (Amendment) Rules, 2026, interest on late dues cannot exceed 12% a year simple interest (earlier up to 21%), and non-occupancy charges for rented flats are 10% of the flat’s service charges. Service charges are shared equally among all flats. Read the 2026 changes or check your bill with the society dues checker.
Common charges and their limits
| Charge | Limit |
|---|---|
| Transfer premium on sale of a flat | Maximum Rs 25,000 in Municipal Corporation areas, under a Government circular of 2001 issued under Section 79A |
| Transfer fee and entrance fee | Nominal amounts fixed by the bye-laws |
| “Donation”, “development fund”, “welfare fee” as a condition for transfer | Not permitted as a condition of membership |
| Non-occupancy charges when a flat is rented | Not more than 10% of the service charges (excluding municipal taxes); not leviable when family members occupy the flat |
| Transfer to a legal heir or nominee after death | Transfer premium is generally not payable |
Is an NOC from the society needed to sell a flat?
A society cannot lawfully make payment of illegal charges a condition for admitting a buyer as a member. Banks and buyers often ask for a society NOC or no-dues letter, so check your society’s registered bye-laws. The society’s role comes after the sale: admitting the buyer as a member and transferring the share certificate. Banks sometimes ask for an NOC for a loan; a society should not use that to extract unlawful payments.
Transfer and membership: timelines
- After a sale, the seller and buyer apply to the society in the prescribed forms with the registered agreement, the share certificate and the permitted fees.
- The managing committee must decide the application within the time set by the Act and bye-laws. If it does not communicate a decision, membership can be deemed to have been granted after the statutory period.
- Refusal must be for valid reasons under the bye-laws and must be communicated with reasons.
For transfer after a member’s death, see transfer of a society flat after a member’s death.
Where to complain
| Problem | Forum |
|---|---|
| Refusal or delay of membership, illegal charges, failure to give documents, irregular elections | Deputy Registrar of Co-operative Societies for your ward |
| Disputes about the society’s business between members and the society or committee (for example, recovery, repairs, parking) | Co-operative Court, under Section 91 |
| Recovery of dues by the society from a member | Recovery certificate under Section 101 |
| Leakage from a neighbour’s flat | The society first; then the Deputy Registrar or a civil remedy |
Step by step
- Ask the society for its demand in writing, quoting the bye-law relied on.
- Get a copy of the society’s registered bye-laws; you are entitled to inspect records and obtain copies.
- Write to the secretary and committee, citing the bye-laws and the Government circular, and give a reasonable time.
- If unresolved, file a complaint with the Deputy Registrar, or a dispute before the Co-operative Court where applicable.
Frequently asked questions
The society wants 2% of the sale price as transfer charges. Is that legal?
No. The transfer premium in a Municipal Corporation area is capped at Rs 25,000. Percentage-based charges on the sale price are not permitted.
Can the society stop me from renting my flat?
A member can let the flat after informing the society and submitting the leave and licence agreement and tenant details. The society may levy non-occupancy charges within the limit, but cannot impose arbitrary bans.
Can the society cut my water supply for unpaid maintenance?
Essential services should not be cut to recover dues; the society has legal recovery routes under the Act.
See also: leave and licence disputes, public trust or registered society and property matters.
Consultations are by appointment. To fix a time, telephone +91 99301 50560 or send a message on WhatsApp.
This guide describes general law and the model bye-laws as understood in October 2026. It is not legal advice; check your society’s registered bye-laws before acting.