State Proposes to Double Housing Society Registration Fees, Legally Recognize Online GBMs

 Pune, April 25, 2025 - The Maharashtra State Government has put forth a proposal to significantly increase the registration fees for housing societies while also granting legal recognition to online General Body Meetings (GBMs). These changes are outlined in the draft rules for amendments to the Maharashtra Cooperative Societies Rules, which were published on April 15th.

Currently, the registration fee for housing societies stands at ₹2,500. The proposed amendment seeks to double this amount to ₹5,000. The government has invited feedback from all stakeholders regarding these draft rules through the cooperation department's official portal, with a deadline of May 15th. The implementation of these new rules is anticipated later this year.

This move to legally recognize online GBMs is seen as a significant step towards digital transformation in the cooperative housing sector. It acknowledges the operational shifts that have occurred post-pandemic, allowing for virtual participation and voting in society meetings.

Key Highlights of the Proposed Amendments:

  • Increased Registration Fees: The registration fees for housing societies are proposed to increase from ₹2,500 to ₹5,000.
  • Legal Recognition for Online GBMs: The draft rules provide legal standing for online General Body Meetings, including virtual participation and voting.
  • Standardized Maintenance Charges: The reforms aim to standardize maintenance structures by mandating uniform service charges per unit, addressing the current practice of charging based on carpet area.
  • Formal Process for Name Reservation: A formal procedure for society name reservation under Rule 106 C-2 is proposed, replacing the previous less defined process.
  • Simplified Casual Vacancy Filling: The new rules suggest simplifying the process of filling casual vacancies in managing committees without the need to approach election authorities.
  • Streamlined Property Transfers: Succession issues in property transfers will be addressed by allowing transfers based on registered family settlement deeds, potentially reducing litigation.
  • Clear Process for Nominee Membership: The amendments create a clear procedure for admitting nominees as provisional members following the death of a member.
  • Boost for Redevelopment: Societies will be allowed to borrow up to 10 times the approved value of their land for redevelopment projects, a significant increase from the previous limit of 10 times their own funds.
  • Video Recording for Developer Selection: The developer selection process for redevelopment projects will need to be video-recorded in the presence of at least 51% of the members.
  • Reduced Interest on Delayed Maintenance: The draft proposes to reduce the maximum interest rate on delayed maintenance dues from 21% to 12% per annum on simple interest.

Mandatory Funds for Housing Societies:

The draft rules also highlight the mandatory funds that housing societies are required to maintain:

  • Reserve fund
  • Sinking fund
  • Major repairs fund
  • Education & training fund

Public Consultation:

The Maharashtra State Government has urged all stakeholders to provide their feedback on these proposed amendments through the cooperation department's official portal by May 15, 2025.

Expert Opinion:

According to Mr. Parab, an expert in cooperative housing society matters, "Overall, the proposed rules are a balanced blend of regulatory clarity, operational flexibility, and participatory governance. Their implementation, following public consultation, will undoubtedly foster greater transparency, trust, and accountability in Maharashtra's cooperative housing  sector."  

It is estimated that there are approximately 1.25 lakh housing societies in Maharashtra. The implementation of these rules could have a significant impact on their operations and financial aspects.


Want to learn more about the legal aspects and functioning of housing societies in Maharashtra? Subscribe to our Urban Society YouTube channel  (https://www.youtube.com/@urbansocietyindia) for informative videos! If you found this helpful, please like and share it.

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