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Time of India
30-06-2025
- Business
- Time of India
Draft rules for cooperative housing societies likely to be notified in two weeks: State
1 2 Pune: State govt plans to notify a new set of draft rules for cooperative housing societies in two weeks, cooperation department officials confirmed on Monday. The proposed changes aim to reduce conflict, simplify redevelopment, and bring more transparency to society operations across the state, said officials. A key feature of the draft is the reduction in interest on maintenance dues from 21% to 12%, which residents say is long overdue. The rules also pave the way for hybrid AGMs and mandatory video recording of redevelopment meetings, as well as permit societies to raise redevelopment loans up to the land's assessed value, allowing for greater autonomy in self-redevelopment. You Can Also Check: Pune AQI | Weather in Pune | Bank Holidays in Pune | Public Holidays in Pune Kiran Sonawane, deputy registrar of cooperative housing societies and one of the lead drafters of the rules, said, "The draft received a positive response and is likely to be cleared within two weeks. The law and judiciary department will clear it." He added, "Penalties should be a deterrent — not a source of income for societies. Besides reducing the interest rate from 21% to 12%, we've included key reforms like hybrid AGMs for redevelopment and giving societies the freedom to raise funds based on their land's potential." In Pune, where thousands of cooperative societies operate, residents have expressed relief at the proposed interest rate cap. "This 21% penalty was almost predatory, especially for older residents like me living on pensions," said Anjali Deshmukh, a retired teacher from Kothrud, adding, "The proposed 12% cap is a sensible and fair solution." Ravi Mehta, a Baner resident, said the move would ease financial pressure on middle-class families. "Even a brief delay in payments could spiral into a major burden. This change shows that govt understands our realities." Pooja Kulkarni, a single mother from Wakad, said, "I've lived with the anxiety of mounting dues. Now, a lower interest rate gives me a chance to catch up without being penalised harshly." The rules also include formal recognition of commercial establishments within societies as "premises societies", ensuring their rightful inclusion during redevelopment. A new category of provisional members has been introduced, allowing nominees to participate in society affairs, including voting, until legal title is transferred. Sonawane noted that many of these measures were earlier part of society by-laws but are now being given legal sanctity. "Once notified, societies will be required to amend their by-laws accordingly," he said, adding, "The aim is to reduce ambiguity, minimise govt intervention, and empower societies to function more independently." Advocate Shreeprasad Parab, expert director of the Maharashtra State Cooperative Housing Federation, told TOI that the newly proposed amendments to the Maharashtra Cooperative Societies (MCS) Rules, 1961, are the result of comprehensive consultations steered by the commissioner for cooperation in collaboration with the directors of the federation. "These deliberations, enriched by extensive feedback from stakeholders across the state, have culminated in a forward-looking legislative proposal designed to address critical gaps," he said. With over 1.25 lakh cooperative housing societies and more than two crore members in Maharashtra — 70% of them located in the Pune and Mumbai Metropolitan Region collectively — the new rules are expected to bring sweeping changes in how housing societies function, added housing federation officials who have helped in drafting the rules. The draft rules also propose: Allowing societies to raise loans up to 10 times the govt-assessed land value for self-redevelopment Enabling hybrid AGMs, with a quorum of either 20 members or two-thirds of the total strength, whichever is lower Permitting reconvened AGMs without quorum if the original meeting is dissolved due to lack of attendance Mandatory video recording of redevelopment-related meetings Equal division of common service charges, with water charges based on the number of taps per flat Annual collection of sinking fund (minimum 0.25%) and repair and maintenance fund (minimum 0.75%), based on construction cost
Hindustan Times
22-06-2025
- Business
- Hindustan Times
5 key highlights of Maharashtra's proposed housing society rules: 12% interest cap, redevelopment loans and more
The Maharashtra government plans to introduce revised rules for cooperative housing societies, which aim to simplify regulations and reduce bureaucratic involvement. The Maharashtra government plans to introduce revised rules for cooperative housing societies, which aim to simplify regulations and reduce bureaucratic involvement. (Picture for representational purposes only)(Mehul R Thakkar/HT) According to a report by Hindustan Times, the draft proposals include measures such as reducing interest on members' dues, enabling societies to raise redevelopment loans by linking them to land value, and revising maintenance fee structures. Here are five key highlights from the draft rules for Cooperative Housing Societies: 1) Lower interest on dues Maharashtra's draft rules propose reducing the interest on members' outstanding dues from 21% to 12%, easing residents' financial burden. 2) Easing redevelopment financing According to the draft, co-operative housing societies may be allowed to raise loans up to 10 times the land cost for redevelopment, supporting self-redevelopment or improved negotiations with builders. Also Read: Maharashtra approves new housing policy after nearly two decades: 5 key highlights 3) Modernising meeting protocols The draft proposes that annual general meetings (AGM) may incorporate virtual participation, with a quorum set at two-thirds attendance or 20 members (whichever is lower). Decisions require a simple majority (51%), and virtual meetings must be video-recorded if they are for redevelopment. 4) Empowering heirs/nominees The draft proposes introducing a new category called 'provisional members,' allowing nominees to exercise voting rights after a member's death, even before the ownership is formally transferred. Also Read: Mumbai Real Estate: Developers waive floor-rise premiums to attract buyers amid surging inventory 5) Standardise charge collection and funds According to the Maharashtra government's draft, common service charges will be equally divided among all flats, while water charges will be calculated based on the number of taps. The draft also mandates annual contributions to include a sinking fund of at least 0.25% and a repair and maintenance fund of 0.75% of the building's construction cost. Also Read: Dharavi Redevelopment: Maharashtra govt approves stamp duty concessions for Special Purpose Vehicle 'We will finalise the rules by incorporating the suggestions and objections in eight days, after which the draft will go to the principal secretary of the cooperation department. Once the rules are vetted by the law and the judiciary department, they will be notified. Many clauses, such as charges of sinking repair funds, were in the bylaws, but by bringing them into the rules, we have given them legal sanctity. Once the rules are finalised, we will reframe the bylaws to simplify them," Kiran Sonawane, deputy registrar of Maharashtra, told the Hindustan Times newspaper.
