Maharashtra Housing Societies Raise Concerns Over Draft Rules for Redevelopment and Maintenance

Housing societies in Maharashtra have raised concerns about several aspects of the draft rules framed under the Maharashtra Cooperative Societies Act, 1960. The feedback was submitted after the state government published the draft on April 15, inviting public comments until May 15. Among the primary issues raised were the uniformity in maintenance charges, the procedures for transferring shares, and quorum requirements for redevelopment meetings.

The state government received over 300 objections and suggestions, with housing societies highlighting the need for clarity and consistency in the implementation of the rules. The draft rules, which have been pending since the Act was amended in 2019, aim to standardise various processes across cooperative housing societies in Maharashtra. Some of the key proposals in the draft include a uniform service charge on a per-unit basis, which would replace the current practice of calculating maintenance fees based on carpet area. This change is expected to address disputes over maintenance charges among society members.

Additionally, the rules propose reducing the interest on delayed maintenance payments from 21% per annum to 12% simple interest, providing relief to residents struggling with arrears. The rules also suggest creating dedicated funds for reserves, sinking funds, major repairs, education, and welfare, and formalising society name reservations under Rule 106 C-2. The draft simplifies the process for filling casual vacancies in managing committees without needing election authority clearance.

For redevelopment projects, the proposed rules increase the borrowing limit for societies to 10 times the approved land value (up from 10 times the society's own funds) and mandate that the developer selection process be video-recorded in the presence of at least 51% of the members. However, some objections were raised about these provisions, particularly around the borrowing limit and video-recording requirement.

While housing federations have welcomed the draft rules, they stress the urgency of swift implementation. Many believe that the delay in finalising the rules has left housing societies vulnerable to legal ambiguity. The final rules are expected to be cleared by the state cabinet in June, marking a significant step toward resolving long-standing issues in cooperative housing governance.