Q. Maharashtra government has recently notified the MCS (Amendment) Rules. It will be helpful if you can highlight the amended provisions relating to sharing the society charges amongst the members. Pratik Shah, Mulund
A. The societies were levying the society maintenance charges in accordance with bye law 66 and 67 to each member. The much awaited MCS (Amendment) Rules, 2026 notified on June 18, now provide for the share of charges to be levied to each member or unit or flat holder. Rule 106C-12 (4) provides a detailed list of charges and the basis of apportionment of the share of each member or unit or flat holder. While the property tax continues to be levied at the rate fixed by the local authority, the amended rules added a provision for collecting the property tax on the common areas of the society on the basis of carpet area of each flat or unit. The rate of interest that a society could charge to the defaulters was up to 12% as may be decided by the general body, which is now prescribed as a flat rate of 12%. Further, the criteria to levy insurance charges has now changed to the carpet area. The amended rules prescribe for levying 10% service charges on account of non occupancy charges in the event the flat or unit is sub-let. A new head of major repair fund has been added in the new rules on the basis of the carpet area. Bye law 13 provides for the creation of major repairs funds at the rate fixed on the carpet area. An election fund is required to be created by every society. The said rule also provides for the welfare fund, the contribution to which may be voluntarily by members. Car parking charges will be levied as per the rate fixed by the general body.
Q. What is a family arrangement and what is the procedure to transfer a flat of a deceased member to his legal heirs? Raji Sukumaran, Chembur
A. The term 'family arrangement' was incorporated in the newly introduced chapter 154B in the MCS Act in 2019 specifically applicable for cooperative housing societies. The MCS Rule 106C-6(2) lays down the procedure for the transfer of flat or unit in the event of the death of a member. The family arrangement means an arrangement or settlement reached between the legal heirs or representatives of the deceased member. After the death of any member/joint member, the legal heirs may enter into a deed of family arrangement. The legal heirs shall make an application in the prescribed Form Y-5 to the society along with the duly registered family arrangement and also submit an indemnity bond indemnifying the society against any claims made in future by any person. On receipt of such application, the managing committee shall immediately publish a notice in two daily local newspapers, inviting claims or objections. If no claims or objections are received within the time period prescribed in the notice, the managing committee may transfer the said flat in the name of the person/s named in the registered family arrangement. However, if any claims and objections are received, then the committee shall not transfer the rights and inform such legal heirs to obtain a legal heirship certificate or a letter of administration from the court.
The questions are answered by Sharmila Ranade, a legal expert associated with Mumbai Grahak Panchayat. The questions, in brief, may be sent to fpjchs@gmail.com
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