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Maharashtra is moving closer to modernizing the governance of its vast network of cooperative housing societies, with draft rules under the Cooperative Societies Act, pending since April, expected to be cleared soon. State Cooperation Minister Babasaheb Patil confirmed that the draft rules, which are key to implementing amendments made to the law in 2019, are on the verge of final approval.
The state has over 1.25 lakh cooperative housing societies, many of which still operate under outdated provisions that often complicate management, dispute resolution, and financial administration. The proposed rules aim to bring these societies in line with contemporary practices, providing clarity, transparency, and improved efficiency.
One of the significant reforms relates to maintenance charges. The draft proposes clear guidelines for levying and collecting maintenance fees, ensuring accountability while reducing conflicts between members and managing committees. This will help societies manage day-to-day operations smoothly and maintain infrastructure without ambiguity.
Another notable change is the introduction of hybrid general body meetings. Recognizing the need for flexibility in the post-pandemic era, the rules allow societies to hold meetings both physically and virtually. This approach will make participation easier for members, particularly those living abroad or away from the society, ensuring wider engagement and decision-making transparency.
The draft also sets clear borrowing limits for societies undertaking redevelopment projects. This provision is designed to prevent over-leveraging, ensuring that redevelopment initiatives remain financially sustainable. By regulating borrowing, societies can take on redevelopment projects confidently without jeopardizing their financial health.
To further streamline financial matters, the rules propose interest caps on late payments. This will protect members from excessive penalties while encouraging timely payments, promoting a fairer system for residents and the managing committees alike.
Additionally, the draft introduces provisional membership procedures, providing clarity on the rights and responsibilities of new members. This will help societies integrate new residents smoothly while minimizing disputes regarding membership eligibility or entitlements.
The draft rules will now undergo review by the Law and Judiciary Department before final approval. Alongside these rules, the state government plans to introduce Model Bye-laws 2025 by December. These bye-laws are expected to provide a standardized framework for cooperative societies across Maharashtra, addressing common disputes, improving management practices, and aligning day-to-day functioning with the amended Act.
Overall, the reforms aim to bring much-needed modernization to Maharashtra’s cooperative housing sector. By updating governance structures, financial regulations, and membership procedures, the state hopes to create societies that are more transparent, accountable, and better equipped to handle the evolving needs of residents. The implementation of these rules promises to reduce conflicts, streamline operations, and strengthen the foundation of cooperative housing across Maharashtra.
