Maharashtra housing society maintenance rules, in plain words

The law and the bye-laws

Co-operative housing societies in Maharashtra are governed by the Maharashtra Co-operative Societies Act, 1960, which since 2019 has a separate chapter for housing societies, and by each society's registered bye-laws. Most societies have adopted the model bye-laws of 2014, and a draft set for 2025-26 proposes changes, so check which version your society follows. The rules below are from the 2014 model bye-laws unless said otherwise.

Apartment owners' associations formed under the Maharashtra Apartment Ownership Act, 1970 follow their own deed of declaration and bye-laws instead, so parts of this guide will not apply to them.

What a Maharashtra society can charge

The model bye-laws list the heads a society may levy on its members. The common ones are:

• property taxes and water charges,
• common electricity, and the running and repair of lifts,
• contribution to the repairs and maintenance fund,
• contribution to the sinking fund,
• service charges: security, housekeeping, staff salaries, office and other common expenses,
• parking charges,
• non-occupancy charges for flats that are rented out,
• insurance, lease rent and non-agricultural tax where they apply,
• loan instalments and interest, if the society has borrowed, and
• interest on dues paid late.

How each head is shared between flats

The bye-laws do not let a society split everything one way. Each head has its own basis:

• Service charges: shared equally by every flat, whatever its size.
• Sinking fund: at least 0.25% of each flat's construction cost a year. See the sinking fund guide.
• Repairs and maintenance fund: 0.75% of each flat's construction cost a year.
• Property tax: as the municipal corporation assesses each flat.
• Water charges: by the number and size of inlets, or as the society decides.
• Insurance, lease rent and NA tax: in proportion to each flat's area.

Service charges (equal share)

₹1,800

Sinking fund (₹20 lakh cost × 0.25% ÷ 12)

₹417

Repair fund (₹20 lakh cost × 0.75% ÷ 12)

₹1,250

Property tax and water

₹650

Monthly bill for this flat

₹4,117

Bills should show each head separately. It answers most member questions and is what the auditor checks. The maintenance calculator helps with the per sq ft and equal-share parts.

Interest on late payment

A society can charge simple interest on charges not paid by the due date. Under the 2014 model bye-laws the rate is up to 21% a year, or lower if the general body fixes a lower rate. The 2025-26 draft proposes capping it at 12% a year. Interest is charged on the overdue charges, not on earlier interest.

Apply it the same way to every flat, print the rate on the bill, and work it out from the due date. The interest calculator gives the amount for any delay.

Rented flats and non-occupancy charges

The owner stays liable to the society even when the flat is rented, though the tenant may pay under the rent agreement. A society may levy non-occupancy charges on flats the owner does not live in, capped by a 2001 government order at 10% of the service charges, not of the whole bill. Nothing else may be charged extra simply because a flat is rented.

Defaulters and recovery

A member who does not pay within the period the bye-laws allow after the bill is treated as a defaulter. A defaulter cannot stand for or stay on the managing committee. Before any action, the society should send written reminders and then a notice; ready formats are in the reminder and notice templates.

For persistent arrears, the society can apply to the registrar for a recovery certificate under Section 101 of the Act, after which the dues are recoverable like arrears of land revenue.

Where members can complain

• First, in writing to the managing committee, and at the general body meeting.
• Then to the Deputy or Assistant Registrar of co-operative societies for your ward or taluka.
• Disputes between a member and the society can be taken to the co-operative court.

In practice, most complaints about maintenance are complaints about transparency. A bill that shows every head, a receipt for every payment and a monthly account shared with all members prevent most of them.