Maharashtra Caps Delayed Payment Interest at 12 Percent in New Housing Society Rules
The Maharashtra State Government on Tuesday notified amendments to the Maharashtra Co-operative Societies Rules, 1961, establishing a detailed regulatory framework for co-operative housing societies across Mumbai and the rest of the state. The new rules address long-standing disputes by capping interest on delayed payments, regulating maintenance charges, and enabling online attendance for general body meetings.
Under the amended rules, the state government has introduced a structured list of permissible charges that societies can collect from members, including service charges, water charges, lift maintenance expenses, parking charges, and non-occupancy charges. To prevent managing committees from imposing arbitrary fees, the rules place a strict cap of 12 percent per annum on the interest charged on delayed payments. Additionally, non-occupancy charges have been fixed at 10 percent of the service charges.
The general body has been officially declared the highest decision-making authority of any housing society, making its decisions binding on the managing committee. To increase participation, the rules now permit members to attend general body meetings through video-conferencing and other audio-visual methods, provided proper records of their participation are maintained.
The amendments also establish clear guidelines for flat transfers and succession. Following the death of a member, a nominee can apply for temporary membership by submitting an application and an indemnity bond to protect the society against future claims. If no nomination exists or no nominee comes forward, the society must publish a public notice in two widely circulated local newspapers and display it on the society's notice board to invite claims from legal heirs.
Furthermore, the rules mandate annual training for society members, office bearers, and employees through recognized state-level institutions. This training will cover co-operative laws, financial management, administration, and the responsibilities of office-bearers.
According to an official from the state cooperation department, while the housing societies chapter was incorporated into the Co-operative Societies Act in 2019, the rules had not been framed for seven years. The department completed the process after inviting suggestions and objections and deliberating with housing federations over the past year.
