Maharashtra Housing Society Act 2025: Complete Guide to Registration, Rights & Rules

Maharashtra Housing Society Act: Complete Guide with All Details (2025)

Published by CMA Knowledge

Table of Contents

• Introduction
• Importance of Housing Societies in Maharashtra
• Overview of the Maharashtra Cooperative Societies Act, 1960
• Housing Society Registration Process
• Membership Rules
• Rights and Duties of Members
• Managing Committee Roles and Responsibilities
• Elections and Term Rules
• Bye-laws and Their Importance
• Dispute Resolution Mechanisms
• Maintenance Charges and Fund Management
• Redevelopment Rules and Guidelines
• Audit and Financial Transparency
• Penalties for Violations
• Latest Updates and Amendments (as of 2025)
• Comparison with Housing Society Acts of Other States
• Frequently Asked Questions (FAQs)
• Glossary of Important Terms
• Conclusion

Introduction

In Maharashtra, cooperative housing societies are governed by a strong legal framework. The Maharashtra Cooperative Societies Act, 1960, along with the Model Bye-laws and various amendments, ensure that residential societies function transparently and democratically. This article provides a complete, detailed understanding of the Maharashtra Housing Society Act — perfect for society members, managing committees, buyers, and even legal professionals.

Importance of Housing Societies in Maharashtra

Maharashtra, particularly Mumbai, Pune, and Nagpur, has seen a tremendous rise in urban housing needs. Cooperative housing societies offer a collective, affordable, and legally structured solution for residential ownership. Societies manage not just property ownership but community welfare, maintenance, dispute resolution, and redevelopment, all under legal supervision.

Overview of the Maharashtra Cooperative Societies Act, 1960

The Maharashtra Cooperative Societies Act, 1960, governs all cooperative societies, including housing societies. The Act contains:

• Regulations for registration of societies.
• Framework for management (elections, committees, meetings).
• Rights and responsibilities of members.
• Financial management and audit requirements.
• Mechanisms for dispute resolution.
• Penalties for violations.

Housing Society Registration Process

Registration of a housing society is the first step in creating a legally recognized body. Here’s the typical process:

Step 1: Formation of a Provisional Committee

Ten or more flat purchasers must come together to form a provisional committee. One is appointed as Chief Promoter.

Step 2: Name Reservation

The proposed name must be approved by the Registrar of Cooperative Societies.

Step 3: Document Collection

Essential documents include:

• Application forms (Form A)
• Model Bye-laws
• Resolution for name approval
• List of promoter members
• Proof of address
• Builder's permission (if society is under construction)

Step 4: Payment of Share Capital and Entrance Fees

Every member must pay the society’s share capital and admission fees into the society’s bank account.

Step 5: Submission to Registrar

The Registrar reviews the application, documents, and collects fees. If satisfied, the society gets registered and receives a Registration Certificate.

Important: Registration is compulsory within 4 months from receiving Occupancy Certificate (OC) if 60% or more flats are sold.

Membership Rules

Membership is the foundation of any housing society. According to the Act:

• Anyone owning a flat or unit in the society’s premises is eligible for membership.
• A person can hold joint membership (e.g., spouses).
• Cooperative Societies, Companies, or Trusts can also become members if they own premises.
• Nominal Members (such as tenants) can be admitted with limited rights.

Rights and Duties of Members

Rights:

• Vote in general body elections.
• Access society documents and accounts.
• Occupy and enjoy the premises peacefully.
• Participate in meetings, voice opinions, raise issues.

Duties:

• Pay dues (maintenance, repair fund contributions) promptly.
• Follow society bye-laws and regulations.
• Attend meetings.
• Respect neighbors and common property.

Managing Committee Roles and Responsibilities

The Managing Committee is responsible for day-to-day operations. The Committee is elected by the General Body and includes:

• Chairman
• Secretary
• Treasurer
• Other members

Key duties:

• Manage funds and maintenance
• Enforce bye-laws
• Prepare budgets and audit reports
• Conduct meetings and elections
• Address complaints and disputes
• Oversee repairs and maintenance work

Elections and Term Rules

• Managing Committees serve a term of 5 years.
• Elections are held via secret ballot method, supervised by an appointed Election Officer if society has more than 200 members.
• Eligibility criteria for candidates: dues clear, active member, no disqualifications.

Bye-laws and Their Importance

Each society adopts its own bye-laws based on the Model Bye-laws issued by the State Government. These include rules regarding:

• Admission of members
• Use of flats and common spaces
• Transfer of flats
• Maintenance charges
• Conduct of meetings and elections
• Penalties for non-compliance

Tip: Bye-laws must be registered with the Registrar to have legal validity.

Dispute Resolution Mechanisms

Disputes among members or with the Managing Committee can be resolved by:

• Internal grievance redressal within the society
• Approaching the Cooperative Court
• Complaint to the Registrar
• Filing a consumer complaint for service deficiencies
• Approaching RERA for builder-related issues

Maintenance Charges and Fund Management

Societies need funds for upkeep. Sources include:

• Monthly maintenance charges (based on flat area or equally divided)
• Sinking Fund
• Repair and Maintenance Fund
• Parking Charges
• Non-occupancy charges
• Interest on deposits

Proper accounting, budgeting, and auditing of all funds are mandatory under the Act.

Redevelopment Rules and Guidelines

Old societies often require redevelopment. Key points:

• Consent of at least 51% or 70% (depending on society type) required.
• Appointment of Developer through transparent process.
• Redevelopment Agreement and Power of Attorney must be registered.
• PMC (Project Management Consultant) helps members understand technicalities.
• Builder must provide alternate accommodation/rent during construction.
• Corpus fund and extra area incentives are common benefits for members.

Audit and Financial Transparency

Every housing society must appoint a government-empaneled Auditor to audit accounts annually. Failure to file audit reports attracts strict penalties, including disqualification of committee members.

Penalties for Violations

Violation of provisions like failing to conduct elections, audits, registration delays, mismanagement of funds, etc., can result in:

• Fines on the Managing Committee
• Suspension or dissolution of the Committee
• Appointment of an Administrator
• Criminal proceedings in severe fraud cases

Latest Updates and Amendments (as of 2025)

• Self-Redevelopment: Maharashtra government has made the self-redevelopment model easier by setting up a dedicated bank to finance projects.
• Online Complaints: Members can now lodge online complaints directly through a Cooperative Portal.
• Mandatory Election Authority: Elections for societies with over 200 members are now handled by an independent Election Authority under government supervision.
• GST on Maintenance: Societies collecting more than ₹20 lakhs annually must register for GST and charge 18% GST on maintenance bills over ₹7,500 per month per flat.

Comparison with Housing Society Acts of Other States

Maharashtra is considered a benchmark. Compared to Gujarat, Karnataka, Delhi, and Tamil Nadu, Maharashtra offers more detailed regulations specifically for housing societies, better redevelopment guidelines, and more member rights protection.

Frequently Asked Questions (FAQs)

Q1. Can a member be expelled from a housing society?

Yes, but only through a formal process involving Registrar approval.

Q2. What if a builder does not hand over the housing society?

Members can approach RERA and Registrar for enforcement.

Q3. How much maintenance charges can a society collect?

No cap; based on actual costs but without discrimination among members.

Q4. What is the penalty for non-filing of audit reports?

Penalties include fines, committee disqualification, and even administrator appointments.

Q5. How can a housing society start self-redevelopment?

By member consent (51%-70%), appointing consultants, and securing finance from designated banks.

Glossary of Important Terms

• Bye-laws: Internal rules adopted by each society.
• Managing Committee: Elected members managing the society.
• Corpus Fund: Reserve fund for major repairs or redevelopment.
• Occupancy Certificate (OC): Certificate proving the building is fit for occupancy.
• RERA: Real Estate Regulatory Authority for real estate disputes.

Conclusion

The Maharashtra Housing Society Act provides a strong legal framework for cooperative living. Knowing your rights and responsibilities ensures better harmony, transparency, and progress in your society.

Stay tuned with CMA Knowledge for more such detailed guides and legal insights!

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