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If you live in a co-operative housing society in Maharashtra, there is an important update that deserves your attention.

The Government of Maharashtra has amended the Maharashtra Co-operative Societies Rules, 1961, through the Maharashtra Co-operative Societies (Amendment) Rules, 2026. The notification is dated 18 June 2026 and was published in the Maharashtra Government Gazette on 22 June 2026. The amendment introduces a new chapter specifically for co-operative housing societies, which means many day-to-day society matters now have clearer rules.

For residents, this matters because it affects how society charges are calculated, how funds are maintained, how redevelopment meetings are conducted, how nominees are handled after a member’s death, and how Management Committees can spend money on repairs.

For Management Committees, this matters even more. Many practices that were earlier handled based on bye-laws, custom, or committee interpretation now have a clearer statutory structure. That means societies will need to be more careful with billing, notices, documentation, meetings, records, and approvals.

Why do these new housing society rules matter?

Most disputes in housing societies do not start with big legal issues. They usually start with everyday questions.

• Why is my maintenance higher than my neighbour’s? 
• Why am I being charged extra because I have rented out my flat? 
• Who decided the parking charges? 
• Can a redevelopment meeting happen online? 
• Can the committee spend lakhs of rupees without asking the General Body? 
• What happens if a member dies and the flat has not yet been transferred?

The amended rules try to bring more clarity to these areas. They definitely give societies a better framework to follow. The broad direction is clear. Housing societies need to become more transparent, more structured, and more consistent in how they manage money and decisions.

Government Notification · June 2026

Maharashtra Co-operative Housing Societies —
New Rules 2026

A clear, at-a-glance breakdown of what residents and management committees need to know before the next general body meeting.

Notification: Amendment Rules, 2026 Dated: 18 June 2026 Gazette: 22 June 2026

1. How will service charges be calculated in Maharashtra housing societies now?

One of the most important changes is about service charges.

Under the amended rules, service charges are to be divided equally by the number of units or flats. This means the size of the flat is not the basis for service charges. A larger flat and a smaller flat will contribute equally towards service charges.

This is important because service charges usually cover common services that benefit the society as a whole. These include salaries of office staff, security guards, liftmen, gardeners and other employees. They also include printing, stationery, postage, common electricity, audit fees, meeting expenses, legal retainers, and similar administrative costs.

However, it is important not to confuse service charges with every other charge in the maintenance bill. Some charges are divided equally, while others are calculated differently. For example, property tax, water charges, lift expenses, insurance, lease rent, and various society funds have their own basis of calculation.

So, the correct understanding is this: service charges are equal for all flats, but the entire maintenance bill may still vary depending on the nature of other charges.

2. How should water charges be calculated under the new rules?

The amended rules say that water charges should be calculated based on the total number and size of inlets or taps provided in each flat, as per the sanctioned building plan.

This is slightly more specific than simply saying “water charges will depend on the number of taps.” The size of the inlet or tap also matters. The rule is trying to create a more objective way of dividing water charges, instead of societies using arbitrary formulas.

For residents, this means the society should be able to explain the basis of water billing. For Management Committees, it means the calculation should be documented and traceable to the sanctioned plan wherever applicable.

3. What is the new limit on non-occupancy charges?

Many owners do not live in their own flats. Some rent them out. Some flats are occupied by family members. Some may remain vacant.

The amended rules keep a clear limit on non-occupancy charges. A society can charge non-occupancy charges, but these cannot exceed 10% of service charges.

This is a significant protection for owners. It prevents societies from treating non-resident owners as a source of extra revenue. At the same time, it allows societies to levy a reasonable additional charge where permitted.

The important point is that the 10% is linked to service charges, not the full maintenance bill.

4. How much interest can a society charge on delayed maintenance payments?

Delayed maintenance payments can still attract interest. But the amended rules cap the interest on defaulted charges at a rate fixed by the General Body, subject to a maximum of 12% simple interest per annum.

This means a society cannot impose any interest rate it wants. The General Body may decide the rate, but it must stay within this ceiling.

For residents, this creates protection from excessive penalties. For committees, it gives a clear boundary. If the society’s existing billing practice uses a higher rate, it should be reviewed.

5. Who decides car parking charges in a housing society?

Parking is one of the most sensitive topics in housing societies. The amended rules mention car parking charges and state that these charges will be at the rate fixed by the General Body.

This should be understood carefully. The rule clearly talks about the rate of parking charges. It does not, by itself, say that every parking allotment decision must be taken by the General Body. So, societies should avoid over-interpreting this provision.

The safer and more accurate position is that parking charges should be approved by the General Body, and the society should follow the Act, rules, bye-laws and applicable directions while handling parking-related matters.

6. Are lift charges part of service charges or separate charges?

Lift-related expenses are not simply part of general service charges.

The amended rules specifically mention expenses on repairs and maintenance of lifts, including charges for running the lift or installing a new lift. These expenses are to be divided equally among the units or flats in the building where the lift is provided.

This distinction is important in larger societies with multiple wings or buildings. If one building has a lift and another does not, the cost allocation should follow the rule rather than being merged blindly into a common pool.

7. What funds must a housing society maintain under the new rules?

The amended rules give a clearer structure for society funds. These include the reserve fund, sinking fund, repair and maintenance fund, major repair fund, education and training fund, election fund, welfare fund, corpus fund, and any other fund approved by the General Body.

Table 1: Funds to be created and maintained by a housing society

Fund	Is it mandatory?	How it is collected / maintained	What it is used for
Reserve Fund	Yes	Entrance fees from members, transfer fees or premium, amounts allocated from net profit or surplus, and donations not meant for a specific purpose.	General reserve of the society.
Sinking Fund	Yes	Contribution fixed by the General Body, subject to a minimum of 0.25% per annum of the construction cost of each flat/unit, certified by the architect.	Heavy repairs approved by the General Body.
Repair and Maintenance Fund	Yes	Contribution fixed by the General Body, subject to a minimum of 0.75% per annum of the construction cost of each flat/unit, certified by the architect.	Routine and recurring repairs of the society’s buildings or properties.
Major Repair Fund	Yes	Contribution collected on a pro-rata area basis, as and when required, and as decided by the General Body.	Significant repair and maintenance work on the society’s building and property.
Education and Training Fund	May be established by the society	Contributions collected from members. Separately, societies are required to contribute to the Co-operative Education and Training Fund as prescribed.	Education and training of members, office bearers, committee members and employees.
Election Fund	Yes	Contributions collected equally from all members, as decided by the General Body.	Conducting elections of the Managing Committee.
Welfare Fund	May be established	Voluntary contributions from members.	Social, cultural and recreational activities organised by the society.
Corpus Fund	May be maintained	Maintained by the society as corpus.	Long-term financial stability or purposes approved by the society.
Any Other Fund	May be established with General Body approval	Contributions collected equally from members, subject to General Body approval.	Any specific purpose approved by the General Body, provided it does not contradict the Act or Rules.

The sinking fund must be collected at a rate fixed by the General Body, subject to a minimum of 0.25% per annum of the construction cost of each flat or unit. This construction cost should be the cost incurred during the building’s construction and certified by the architect.

The repair and maintenance fund must be collected at a rate fixed by the General Body, subject to a minimum of 0.75% per annum of the construction cost of each flat or unit. This fund is meant for routine recurring repairs of the society’s buildings or properties.

The major repair fund is different from the regular repair and maintenance fund. It is collected on an area basis, as and when required, and as decided by the General Body. It is meant for significant repair and maintenance work.

The society may establish its own Education and Training Fund from member contributions. Separately, every housing society must contribute Rs. 10 per member per month to the Co-operative Education and Training Fund of the notified State Federal Society or State Apex Training Institute. So, the society’s own internal fund may be optional, but the statutory contribution is mandatory.

Table 2: Share of charges and how they should be apportioned

Charge head	How it should be apportioned
Service Charges	Equally divided by the number of units or flats.
Property Tax	As fixed by the local authority. For common areas, it is apportioned on the basis of the carpet area of each unit or flat.
Water Charges	Based on the total number and size of inlets or taps provided in each flat, as per the sanctioned building plan approved by the competent authority.
Lift Repair, Maintenance, Running or New Lift Installation Charges	Equally divided by the number of units or flats in the building where the lift is provided.
Car Parking Charges	At the rate fixed by the General Body.
Interest on Defaulted Charges	At the rate fixed by the General Body, but not exceeding 12% simple interest per annum.
Loan Repayment and Interest	As per the amount of each instalment with interest fixed by the financial agency.
Non-Occupancy Charges	10% of service charges.
Insurance Charges	Based on the carpet area of each flat. If commercial use or storage of specific goods increases the insurance premium, the extra burden is shared by the flats responsible for such increase, in proportion to their carpet area.
Lease Rent	Based on the carpet area of each unit or flat.
Sinking Fund Contribution	At the rate fixed by the General Body, subject to a minimum of 0.25% per annum of the construction cost of each flat/unit.
Repair and Maintenance Fund Contribution	At the rate fixed by the General Body, subject to a minimum of 0.75% per annum of the construction cost of each flat/unit.
Major Repair Fund Contribution	Based on the carpet area of each flat or unit.
Education and Training Fund Contribution	Rs. 10 per member, or the rate fixed by the Government from time to time, whichever is higher.
Election Fund Contribution	Equally by members.
Welfare Fund Contribution	Voluntarily by members.
Any Other Fund Contribution	Equally by members.
Amenities Charges	Equally by members.
Playground, Garden, Jogging Track Charges	Equally by members.

Note: The society’s own Education and Training Fund may be established under Rule 106C-11(5). However, the contribution of Rs. 10 per member per month to the Co-operative Education and Training Fund under Rule 106C-7(2) is mandatory for every co-operative housing society.

8. Can housing society meetings be held through video conferencing?

The amended rules recognise participation in General Body meetings through video conferencing or other audio-visual means. However, this is not meant to be an informal video call without records. The system used by the society should be capable of recording and recognising member participation and storing the proceedings with date and time.

For normal General Body meetings, whether AGM or SGM, the quorum is two-thirds of the total members or 20 members, whichever is less. If quorum is not present within half an hour, the meeting process must follow the adjournment rules prescribed in the amendment.

Ordinary decisions at a General Body meeting are passed by a 51% majority of the members present, including those attending through video conferencing. This is different from redevelopment decisions, where the approval threshold is linked to the total membership of the society, not only the members present in the meeting.

9. What are the new rules for redevelopment meetings?

Redevelopment is one area where the amended rules are quite specific.

For redevelopment matters, the society must give 14 clear days’ notice. The quorum for a redevelopment-related Special General Body Meeting is two-thirds of the total members of the society. The meeting must be conducted in the presence of a representative of the Registrar.

The meeting must also be video recorded. One copy of the recording has to remain in the custody of the Chairman, and another copy has to be kept with the office of the Assistant or Deputy Registrar within whose jurisdiction the society is located.

For the selection of a developer or contractor for redevelopment, the resolution must be passed by a majority of 51% of the total members of the society, including members attending through video conferencing.

This is the key distinction. For ordinary General Body decisions, 51% is calculated on the basis of members present. For redevelopment developer or contractor selection, 51% is calculated on the basis of total members of the society.

The amended rules also support self-redevelopment.

Normally, a housing society cannot incur liability beyond ten times the total of its paid-up share capital, accumulated reserve fund, amount contributed by members towards land and building, and building fund, after reducing accumulated losses.

For self-redevelopment or self-development, the rule allows a society to borrow up to ten times the value of the land, based on a valuation report obtained from a government-approved valuer.

This gives societies more room to explore self-redevelopment, where the society takes greater control of the project instead of depending entirely on an outside developer. Of course, borrowing for redevelopment is a major financial decision and should be handled only with proper legal, financial and technical advice.

10. What happens when a housing society member dies?

The amended rules introduce a clearer process for provisional membership after the death of a member or joint member.

If the deceased member had made a nomination, the nominee may apply for provisional membership in the prescribed form, along with an indemnity bond. If there is more than one nominee, all nominees must make a single application.

If there is no nomination, or if no nominee comes forward, the society must invite applications from legal heirs by publishing a notice in at least two widely circulated local daily newspapers. The notice must also be displayed on the society notice board.

After reviewing the applications and making suitable inquiries, the committee may admit a legal heir or representative as a provisional member.

But this point must be understood carefully. A provisional member does not automatically get ownership, title or property rights. The amended rules specifically state that a provisional member will not have right, title or ownership of the property, and the provisional member’s name will not be included on the share certificate.

So, it would be risky to say that the nominee automatically gets full voting rights or ownership rights. The correct position is that the nominee or legal heir may be admitted as a provisional member until the proper legal transfer process is completed.

11. Can legal heirs transfer a flat through a family arrangement?

The amended rules also explain the process for transfer on the basis of a family arrangement.

After the death of a member or joint member, the legal heirs may enter into a duly registered deed of family arrangement. This deed should record the terms relating to the share, right, title and interest in the flat held by the deceased member.

The legal heirs can then apply to the society with the registered family arrangement and an indemnity bond. The society must publish a public notice in two widely circulated local daily newspapers inviting claims or objections. If no claim or objection is received within the prescribed time, the committee may transfer the share, right, title and interest as provided in the family arrangement.

If there is a dispute, or if someone objects, the society should not proceed with the transfer. The legal heirs would then need to obtain a legal heirship certificate or letter of administration from the competent court.

This is useful because many societies struggle with succession cases. The rule gives committees a more structured process and reduces the risk of societies making ownership decisions on their own.

12. How much can a Management Committee spend on repairs without fresh approval?

The amended rules specify how much a Managing Committee can spend on repair and maintenance of society property at one time in a financial year.

For societies with up to 25 members, the limit is Rs. 1,00,000. For societies with 26 to 50 members, it is Rs. 2,00,000. For societies with 51 to 100 members, it is Rs. 3,00,000. For societies with 101 to 1000 members, it is Rs. 4,00,000. For societies with 1001 or more members, it is Rs. 5,00,000.

This should not be misunderstood as a total annual expenditure limit for the entire society. It is a limit on the committee’s competence to incur one-time expenditure on repair and maintenance of society property. Regular society expenses, staff payments, utilities, audit fees and other approved costs should not be confused with this specific repair and maintenance spending provision.

For larger repair projects, committees should take proper General Body approval and maintain clear records.

13. What are the registration fees for a new co-operative housing society?

The amended rules also prescribe registration fees for different categories of housing societies.

A tenant ownership housing society has a registration fee of Rs. 5,000. A tenant co-partnership housing society has different fees depending on the number of flats or units. The fee is Rs. 2,500 for up to 25 flats, Rs. 5,000 for 26 to 50 flats, Rs. 7,500 for 51 to 250 flats, and Rs. 10,000 for more than 250 flats.

Other housing societies have a fee of Rs. 5,000. Housing societies of backward class persons and housing societies under Lok Awas Yojana have a fee of Rs. 50. Co-operative Housing Associations and Associations of Societies have a fee of Rs. 5,000.

14. Can a housing society levy charges other than those listed in the rules?

The amended rules list several charge heads, including service charges, property tax, water charges, lift expenses, car parking charges, interest on defaulted charges, loan repayment, non-occupancy charges, insurance, lease rent, non-agricultural tax and contributions towards various funds.

The rules also allow “any other charges” approved by the General Body, provided such charges do not contradict the Act and the Rules.

This means societies cannot randomly invent charges without approval or legal basis. But it also does not mean that societies can levy only the specifically listed charges and nothing else. If another charge is required, the General Body may approve it, as long as it is not against the law.

15. What are the basic conditions for becoming a member of a housing society?

The amended rules also clarify the basic conditions for admission as a member of a housing society.

A person cannot be admitted as a member, except as an associate or provisional member, unless the person applies in writing in the form specified in the society’s bye-laws, pays for at least five shares along with an entrance fee of Rs. 500, submits the required registered agreement, gift deed or similar legal document, and gets the application approved by the society’s committee.

This is useful for societies because membership should not be treated as automatic or informal once a flat transaction is completed. The application, supporting documents, payment and committee approval all matter.

What should residents check in their maintenance bills now?

Residents should start by reading their maintenance bills more carefully. The important question is not only how much is being charged, but also how each charge is being calculated.

If service charges are being calculated based on flat size, the society may need to review the billing method. If non-occupancy charges are more than 10% of service charges, they should be corrected. If interest on overdue payments is higher than 12% simple interest per year, that should also be reviewed.

Residents should also check whether important decisions, especially parking charges, major repairs, funds and redevelopment, are being properly placed before the General Body where required.

What should Management Committees do to comply with the new rules?

Management Committees should treat this amendment as a reason to clean up governance.

The first step is to review the society’s current billing structure. The committee should check whether service charges, water charges, lift charges, non-occupancy charges, parking charges, interest, insurance and fund contributions are being calculated as per the amended rules.

The second step is to review funds. The society should maintain clear records for the sinking fund, repair and maintenance fund, major repair fund, election fund, education and training fund, welfare fund and corpus fund, wherever applicable.

The third step is documentation. General Body approvals, committee decisions, notices, attendance records, video participation, redevelopment voting, public notices and legal heir applications must be properly recorded.

The fourth step is communication. Residents are far more likely to accept changes when the committee explains why the billing format is changing and how the amended rules affect each charge.

How ADDA can help societies stay compliant?

Rules become useful only when they are implemented properly. For many Management Committees, the challenge is not understanding the law once. The challenge is applying it correctly every month, across billing, accounting, records, notices, meetings and resident communication.

This is where a community management platform like ADDA can help.

ADDA enables societies to generate transparent maintenance bills, maintain member records, track funds, record General Body decisions, share notices, manage collections, and keep financial transactions documented. When billing rules are clearly configured and records are maintained digitally, committees can reduce confusion and residents can understand what they are paying for.

Good governance is not just about following rules when there is a dispute. It is about creating a system where fewer disputes arise in the first place.

Final thoughts

The Maharashtra Co-operative Societies (Amendment) Rules, 2026 bring more structure to the way housing societies are expected to function.

Some changes affect residents directly, such as service charges, non-occupancy charges, interest on delayed payments and water charges. Some changes affect Management Committees more directly, such as repair spending limits, fund maintenance, training contributions, documentation and redevelopment procedures.

The real message is simple. Housing societies can no longer afford to run only on informal practices. Decisions need to be documented. Charges need to have a clear basis. Meetings need proper records. Funds need to be maintained transparently. Residents need to be informed.

For a housing society, compliance should not feel like paperwork. Done well, it becomes the foundation of trust.

This article is intended to simplify the recent amendments based on the official Government Gazette notification. It should not be treated as legal or financial advice. Before taking decisions related to billing, redevelopment, succession, transfer, borrowing or society finances, please consult a qualified advocate, chartered accountant or appropriate professional.