Upcoming Cooperative Housing Society Bylaws 2025-26: Key Highlights and Reforms

Published on CSLawship.in Date: 22.06.2025
Author: CSLawship Editorial Team

The Cooperative Housing Sector in Maharashtra is set for a significant transformation. The Maharashtra Government has released a draft of revised housing society rules for public feedback, aimed at simplifying governance, enabling digital participation, and streamlining financial and operational processes for housing societies. These amendments, expected to form part of the Cooperative Housing Society Model Bylaws 2025-26, introduce several forward-looking provisions that address both legacy challenges and modern-day needs.

Here is a detailed breakdown of the major proposed reforms:

Digital Governance: Virtual AGMs Permitted: One of the most progressive features of the draft is the allowance for virtual Annual General Meetings (AGMs). While quorum requirements two third or twenty members, whichever is less remain intact, societies can now conduct AGMs online to ensure greater participation and administrative ease. If a meeting is adjourned due to lack of quorum, it can be reconvened within 7 to 30 days without requiring a fresh quorum.
Provisional Membership for Heirs of Deceased Members
Heirs of deceased members will be allowed to attend general body meetings as provisional members or nominees, even before formal ownership is transferred. However, such members will not have voting rights until legal ownership is established.
Water and Service Charge Reforms
To promote equity in maintenance cost distribution, the draft rules propose:
Equal division of common service charges among all flats.
Water charges to be calculated based on the number of taps in each flat , introducing a more practical, usage-based method.
Revised Interest Rate on Member Dues
In a significant relief to members, the interest on defaulted charges is proposed to be reduced from 21% to 12% simple interest per annum. This will help ease the financial burden on members while encouraging timely payments.
Strengthening Financial Provisions:
a) Sinking and Repair Fund Mandates
Societies must maintain a sinking fund at a minimum rate of 0.25% of the construction cost, collected annually.
A repair and maintenance fund must be maintained at 0.75% of the construction cost.
b) Non-Occupancy Charges
Non-occupancy charges are capped at 10% of service charges.
Empowerment in Redevelopment and Major Decisions
The draft allows:
Societies to borrow up to 10 times the value of their land for redevelopment, based on a certified valuation report.
Approval for redevelopment proposals through AGMs with at least 51% approval of total members.
Societies can now approve expenditure up to ₹3 lakh without general body approval, giving the managing committee greater flexibility in operational matters.
Welfare Fund Provision
The rules include a mandatory welfare fund for social, cultural, and recreational activities. This is a step toward ensuring a vibrant community life and supporting cultural engagement.
Model Bye-laws Made Compulsory
All societies will be required to adopt the model bye-laws, ensuring consistency and legal uniformity across housing cooperatives.
Ease of Recovery from Defaulters
Recovery processes for defaulters have been simplified, aiming to reduce the legal burden on societies and expedite the resolution of financial defaults.
Participation of Premises Societies and Commercial Units
The bylaws propose to allow commercial units, shops, and establishments to be formally recognized as members of the society. This will enable such units to participate in redevelopment and other society matters legitimately.
Autonomy in Managing Committee Casual Vacancies
Societies will now be empowered to fill casual vacancies in the managing committee without the need for registrar intervention, ensuring smoother administrative continuity.

A Modern and Inclusive Approach

These proposed changes signal a forward-thinking and inclusive framework for cooperative housing societies in Maharashtra. From digital AGMs and simplified financial management to inclusive membership rules and standardized governance, the 2025-26 model bylaws aim to foster transparency, accountability, and active participation.

Public suggestions and objections are currently invited, making it a critical time for residents and committee members to voice their inputs.

For more updates on cooperative housing laws, stay tuned to CSLawship.in—your guide to society governance and compliance. For assistance in understanding or implementing the new draft bylaws in your society, you can reach out to our legal experts via the contact page.