Maharashtra Notifies New Co-operative Housing Society Rules, Bringing Dedicated Legal Framework

Mumbai: Around 1.27 lakh co-operative housing societies are registered in Maharashtra, including nearly 33,200 in Brihanmumbai. Recognising their special nature, the Maharashtra Co-operative Societies (Amendment) Act, 2019 introduced Chapter XIIIB in the Maharashtra Co-operative Societies Act, 1960, creating a separate legal framework through Sections 154B-1 to 154B-31.

However, corresponding rules were not framed for nearly six years, leaving Registrars, societies, officebearers and members struggling to implement the provisions. Conflicts between the Act, the Maharashtra Co-operative Societies Rules, 1961, and existing Model Bye-laws also created uncertainty, while housing societies continued to operate under general rules that did not address their specific needs.

The State Government has now notified the Maharashtra Co-operative Societies (Amendment) Rules, 2026, introducing Chapter XI-B. Rules 106C-1 to 106C-14 provide an independent statutory framework for housing societies for the first time and give legal recognition to several matters previously governed only by Model Bye-laws. Revised Model Bye-laws are expected shortly, and societies will have to adopt them within the prescribed period.

Under the new rules, proposed housing societies must submit applications for name reservation and permission to open a bank account in Form Y-1. Housing federations and co-operative housing unions must use Form Y-2. Applications can be submitted personally, by registered post or electronically, and the Registrar must decide them within 30 days.

Applications must include the promoters’ resolution, an architect-certified completion certificate or approved building plan, a bank certificate, proposed bye-laws, details of share capital contribution and a financial viability plan. The online process is intended to make registration more uniform, transparent and timebound.

Registration fees have been fixed at ₹5,000 for tenant ownership housing societies. Tenant co-partnership housing societies will pay between ₹2,500 and ₹10,000, depending on the number of flats. Backward class and Lok Awas Yojana societies will pay ₹50, while federations will pay ₹5,000.

Applicants for regular membership, excluding associate and provisional members, must submit the prescribed form, hold at least five shares, pay the entrance fee and provide a certified copy of the stamped and registered agreement or gift deed executed with the promoter, developer or transferor. Managing committee approval is also mandatory. Spouses, parents, children and siblings may be admitted as associate members on the recommendation of an existing member.

The rules also introduce two routes for provisional membership after a member’s death. Where a valid nomination exists, the nominee may be admitted. In its absence, the society may invite claims from legal heirs through notices in two local newspapers and on its notice board. Provisional membership may be granted in Form Y-4 but does not confer ownership or permit entry of the provisional member’s name on the share certificate

Full membership may also be transferred through a Registered Family Arrangement or Release Deed, reducing the need for costly and lengthy courtissued succession documents where legal heirs have no dispute.

The author is president, Mumbai District Co-operative Housing Societies Federation Ltd For unabridged report: Go to freepressjournal.in

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