After six-year wait, Maha clears long-pending cooperative housing society rules

PUNE: After a delay of more than six years and over a year of intensive consultations, the Maharashtra govt has finally cleared the revised Maharashtra Cooperative Society Rules. The move paves the way for sweeping reforms in the functioning of over 1.25 lakh cooperative housing societies (CHS) across the state.

The revised rules, expected to be officially published next week, provide much-needed clarity on maintenance charges, recovery of dues, membership transfers, and redevelopment procedures. Senior officials from the state cooperation department told TOI that these rules are designed to modernise governance and reduce long-standing disputes.

The draft rules were first published in April 2023 to operationalise amendments made to the Maharashtra Cooperative Societies Act in 2019. However, repeated consultations and modifications delayed their finalisation, forcing societies to operate under outdated provisions.

State cooperation minister Babasaheb Patil confirmed the clearance following scrutiny by the law and judiciary department. “The rules have been pending for too long. We pursued the matter continuously, and their clearance will finally allow for the implementation of reforms that have remained stalled for years,” Patil said. He added that new model bye-laws are also expected to be finalised by the end of 2026.

The new rules formalise post-pandemic administrative shifts, giving legal recognition to online and hybrid annual general meetings. Members will now be permitted to participate and vote virtually.

State cooperation commissioner Deepak Taware highlighted that the reforms also allow societies to fill casual vacancies on their committees internally, without the need to approach election authorities. “Whether it is uniformity in maintenance charges, reducing interest on delayed payments, or online attendance, these reforms are designed to empower societies,” Taware said.

In a significant push for redevelopment, the rules introduce more flexible borrowing norms. Societies will now be allowed to borrow up to 10 times the value of their land for projects, moving away from the previous limit linked strictly to society funds. To ensure transparency, the developer selection process must now be video-recorded, and a minimum of 51% member participation is mandatory for such decisions.

The amendments also mandate a restructuring of financial governance.

Societies must now maintain multiple dedicated funds, including sinking and reserve funds, major repairs funds, education and training funds, cultural and welfare funds.

To reduce the litigation that often follows the death of a member, the rules now allow for the transfer of membership based on registered family settlement deeds. Further, a clear process has been established to admit nominees as provisional members immediately following a member’s passing.

The rules also introduce a formal process for society name reservation (Rule 106C-2) and clarify registration fee provisions.

Shreeprasad Parab, expert director at the Maharashtra State Cooperative Housing Federation, welcomed the move, stating that the revised rules reflect a truly consultative process. “From clarity on fund utilisation to transparent self-redevelopment procedures and stronger member education, these provisions will foster a balanced blend of regulatory clarity and operational flexibility,” Parab said.

Officials believe the implementation of these rules will foster greater transparency, trust, and accountability in Maharashtra’s massive cooperative housing sector.