Maharashtra Housing Society Rules: 12% Penal Interest Cap, 10% Non-Occupancy Charge Limit And Redevelopment Changes

Mumbai, October 1, 2026: The state government has notified a new set of rules governing cooperative housing societies, bringing several provisions relating to maintenance, membership, redevelopment and governance under a clearer statutory framework.

However, society members and managing committees are awaiting finalisation of the revised Model Bye-Laws, which are expected to clarify day-to-day implementation.

The cooperation department published a draft of the revised Model Bye-Laws for tenant co-partnership cooperative housing societies in August and invited suggestions and objections.

Rules Aim To Reduce Disputes

The amended rules seek to reduce disputes between society members and managing committees by bringing greater uniformity to issues such as maintenance charges, recovery of dues, nominations and redevelopment.

One of the key changes is the reduction in the maximum penal interest on delayed maintenance dues from 21% to 12% per annum. Non-occupancy charges have also been capped at 10% of service charges. The rules prescribe different methods for calculating maintenance components, including water charges based on the number of water taps.

Virtual Meetings And Succession

The framework also provides for virtual participation in certain society meetings, including special general body meetings related to redevelopment, making participation easier for members who may be unable to attend physically.

Another important provision concerns succession. A nominee can receive provisional membership and voting rights while legal succession issues are being resolved, helping societies deal with membership-related matters after the death of a member.

Self-Redevelopment Gets Framework

The rules also facilitate self-redevelopment by cooperative housing societies and provide a framework for societies seeking financial assistance for such projects.

Prakash Darekar, president of the Mumbai District Cooperative Housing Society Federation, said, “There are about 1.27 lakh cooperative housing societies registered in Maharashtra, of which 33,200 societies are functioning in Greater Mumbai. The new rules have now created an independent and self-sufficient legal framework for these housing societies, which have become the backbone of urban life.”

He added that the supplementary rules had not been notified for six years and said the new provisions would give several matters a statutory basis instead of relying solely on model bye-laws.

Also Watch:

Changes For Housing Society Members?

Maintenance dues

Non-occupancy charges

Maintenance calculation

Water charges

Society meetings

Nomination

Self-redevelopment

Governance

Model Bye-Laws

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