PUNE: Housing societies across Maharashtra can now conduct annual general meetings (AGMs) online, with interest on maintenance arrears capped at 12% annually, due to the new Maharashtra Cooperative Societies (Amendment) Rules announced by the state government on Tuesday.
The detailed provisions include registration, membership, nominations, inheritance, maintenance charges, redevelopment, financial management, and the functioning of managing committees. This notification marks the implementation of the housing society chapter added through amendments to the Maharashtra Cooperative Societies Act in 2019, concluding a nearly seven-year wait.
Cooperation commissioner Deepak Taware stated that the new rules will enhance the operations of housing societies. “Following this notification, we will soon issue model bylaws for housing societies, which should be adopted during AGMs for consistency,” he elaborated to TOI. The bylaws are expected to be released by the end of July.
Maharashtra State Cooperative Housing Societies and Apartments Federation Ltd president Suhas Patwardhan lauded the notification, describing it as a long-awaited measure that will provide clear guidelines for housing societies. He urged the government to hasten other pending reforms, such as a single-window online approval system for redevelopment and amendments to the Maharashtra Apartment Ownership Act for improved governance of cooperative housing societies.
Federation expert director and advocate Shreeprasad Parab remarked that the new rules establish a dedicated legal framework for housing societies, distinctly separate from other cooperative categories. “The reforms clarify processes regarding registration, membership, redevelopment, financial management, and governance. The next challenge is ensuring consistent implementation and awareness among members,” he added.
The finalized rules, ready by June 18 and translated before public release on Tuesday, include a structured maintenance collection framework. They outline various charges that societies may impose, such as service charges, property taxes, lift maintenance, and parking fees, limiting interest on late payments to 12% per annum, subject to general body approval, while non-occupancy charges cannot exceed 10% of service charges.
Additionally, the rules specify how expenses are distributed among members: some costs will be split equally, while others will be allocated based on factors like carpet area or usage, reducing uncertainty in maintenance billing.
A new procedure for nominations and succession following a member’s death has been outlined. If a nomination exists, the nominee can apply for provisional membership with the required application and indemnity bond. The rules recognize both associate and provisional members and require societies to keep nomination records up to date.
For the first time, members can participate in AGMs and special meetings via video conferencing and other audio-visual means, as long as attendance and proceedings are properly documented.
Redevelopment, a contentious issue for housing societies, now has stricter safeguards. Meetings discussing redevelopment plans need a 14-day notice, a two-thirds quorum, video recording of the proceedings, and the presence of a registrar’s representative. Developer selection will require approval from at least 51% of total members, and societies are encouraged to pursue self-redevelopment by leveraging their land value for borrowings.
Furthermore, state cooperation department officials noted that societies may set up additional funds with general body approval. The rules mandate annual cooperative education and training for members, office bearers, and employees through recognized institutions. They also delineate the responsibilities of managing committees, including budget preparation, account maintenance, audits, repairs, and execution of general body decisions. A swift procedure for recovering unpaid dues through recovery certificates aims to enhance transparency and efficiency in collections.
