Maharashtra has given co-operative housing societies their own set of rules. The Maharashtra Co-operative Societies (Amendment) Rules, 2026, notified by the Co-operation, Marketing and Textiles Department on 18 June 2026 and published in the Government Gazette on 22 June 2026, add a new Chapter XI-B (Rules 106C-1 to 106C-14) to the Maharashtra Co-operative Societies Rules, 1961. They change how much a society can charge for late payment and for rented flats, how nominees and heirs are treated, and how redevelopment meetings must be held. This guide explains what changes for members.
Key facts
- Late payment interest
- Fixed by the general body, but no more than 12% a year simple interest (earlier bye-laws allowed up to 21%)
- Rented-out flats
- Non-occupancy charges are 10% of the flat’s service charges
- Service charges
- Divided equally among all flats, whatever their size
- Nominee
- Can be admitted as a provisional member (Form Y-4) until the legal heirs are recorded
- Redevelopment meeting
- 14 clear days’ notice, two-thirds quorum, a Registrar’s representative present, and a video recording
Interest on late maintenance: now capped at 12%
Under Rule 106C-12, the general body decides the rate of interest on dues that are not paid on time, but it cannot be more than 12% a year, simple interest. The 2014 model bye-laws allowed up to 21%. If your society’s bills still apply a higher rate, or compound the interest, they no longer match the rules. Societies charging more than 12% should revise their general body resolution and their billing.
Non-occupancy charges for rented flats
When an owner lets out a flat, the society can levy non-occupancy charges of 10% of the flat’s service charges. It is a percentage of the service charges only, not of the whole maintenance bill. Owners who let out their flats on leave and licence should check their bills against this. See leave and licence agreements in Maharashtra.
How maintenance is worked out
- Service charges are divided equally among all flats or units, regardless of the flat’s area.
- Lift expenses are shared equally among the units in the building served by that lift.
- Sinking fund: at least 0.25% a year of the construction cost of each flat, as certified by an architect.
- Repair and maintenance fund: at least 0.75% a year of the construction cost of each flat.
- A major repair fund is collected in proportion to area when needed, and an election fund in equal shares.
Nominees and heirs
- A member can nominate a person, and change or cancel the nomination. Nominations are recorded in the society’s register.
- After a member’s death, the nominee can apply in Form Y-4, with an indemnity bond, to be admitted as a provisional member. This lasts until the legal heirs are recorded, and it does not decide who finally owns the flat.
- Heirs can have the deceased member’s share transferred on a registered family arrangement, after a public notice inviting claims. If anyone objects, the society should wait for succession documents.
For the full process, see transferring a society flat after a member’s death.
General body meetings
- Quorum is two-thirds of the members or twenty members, whichever is less.
- Members can take part by video conference, and their votes count.
- Decisions are taken by majority of the members present, unless the law requires more.
Redevelopment: stricter meeting rules
- The special general body meeting needs at least 14 clear days’ notice and a quorum of two-thirds of the total membership.
- A representative of the Registrar must attend, and the meeting must be video recorded. A copy of the recording is kept with the Deputy or Assistant Registrar.
- The developer or contractor must be approved by 51% of the total membership, counting members who join by video.
- For self-redevelopment, a society can borrow up to ten times the land value, based on a government-approved valuer’s report.
Spending by the managing committee
The committee can spend on repairs and maintenance once a year without further approval, up to a limit that depends on the society’s size: from Rs 1 lakh for societies of up to 25 members, rising to Rs 5 lakh for societies of 1,001 members or more.
Recovery of dues
A society recovers unpaid dues under Section 154B-29 of the Maharashtra Co-operative Societies Act, by an application in Form Y-6. The application must state the amount due and whether the defaulter is a member.
New model bye-laws
The Co-operation Department is preparing a single set of model bye-laws for all housing societies, to match these rules. Once they are notified, societies will generally need to adopt them by a general body resolution. Until then, check that your society’s practices do not conflict with the rules above.
What members should do now
- Check your maintenance bill: is the interest on arrears more than 12% a year, or compounded?
- If you let out your flat, check that non-occupancy charges are no more than 10% of service charges.
- Make or update your nomination with the society.
- If your society is considering redevelopment, insist on proper notice, quorum, the Registrar’s representative and the video recording.
- Raise disputes in writing with the managing committee first, then with the Deputy Registrar of Co-operative Societies.
Work out what your society can charge with the free society dues checker. Related: illegal transfer charges and NOCs, water leakage from the flat above, festivals in housing societies.
Frequently asked questions
Does the 12% cap apply to dues from before June 2026?
The rules do not say so expressly. Interest charged for periods after the rules came into force should not exceed 12%. For older arrears, take advice on the facts.
Can the society charge non-occupancy charges if my relative lives in the flat?
Non-occupancy charges are meant for flats let out by the owner. Whether a relative’s occupation counts depends on the society’s bye-laws and the facts; raise it with the committee in writing.
Does a nominee become the owner?
No. A nominee can be a provisional member until the heirs are recorded. Ownership follows the will or the law of succession.
Consultations are by appointment. To fix a time, telephone +91 99301 50560 or send a message on WhatsApp.
This guide describes the rules as understood in October 2026, from the notified Maharashtra Co-operative Societies (Amendment) Rules, 2026. Check your society’s registered bye-laws and any later notifications. It is not legal advice.
Related: Society redevelopment in Maharashtra: who decides, and what the Registrar cannot do.