Maharashtra Cooperative Societies Act
Cooperative housing societies are part of the cooperative societies governed by the Maharashtra Cooperative Societies Act 1960, which was implemented on 26 January 1962. This act applies to the whole of the state of Maharashtra. A few amendments, like the Maharashtra Co operative Society Act 1960 Amendment 2024, were made to this act on 13 February 2013, and it came into effect on 14 February 2013. This blog will discuss the different terms used in the act, amendments made, and the key provisions of the Maharashtra Cooperative Societies Act 1960.
Types of Housing Societies in Maharashtra
Under the Maharashtra Co operative Housing Societies Act housing societies in Maharashtra are classified into three main types:
1. Tenant Ownership Housing Societies
These societies distribute plots or flats on land owned by the society, allowing members to own their homes as per the Maharashtra Co operative society rules.
2. Tenant Co-partnership Housing Societies
Defined under the Maharashtra co-operative housing societies act, these societies own both the land and buildings (freehold or leasehold) and allot units to members for use and occupancy.
3. Other Housing Societies
This includes housing mortgage co-operative societies and house construction societies, which operate under the Maharashtra co-operative society rules act.
Different Terms Used in the Maharashtra Cooperative Housing Societies Act
1. Central Bank
Central banks are cooperative banks aiming to create funds to lend to other societies. However, these do not include the primary urban cooperative banks.
2. Cooperative Bank
Cooperative banks conduct banking business under the Banking Supervision Act 1949 guidelines.
3. Cooperative Appellate Court
The Cooperative Court of Appeal is the Maharashtra Cooperative Appellate Court set up under this act.
4. Bonus
According to the Maharashtra Co-operative housing societies act, bonus means a payment made in cash or kind. It is taken out of the profits of a society to its members, or to someone who is not a member. It, however, does not include the amount paid to society employees under the 1965 Bonus Act.
5. Managing Committee
A managing committee is a board of directors or any committee of management that manages the daily company affairs according to the law drawn up in Article 73 of the law.
6. Working Capital
Working capital refers to the funds that a society has at its disposal according to the Maharashtra co-operative society rules act. This includes paid-up share capital, profit-based funds, and money raised by borrowing and other methods.
7. Dividend
A dividend is the amount paid from a society’s profits to a member proportionate to the shares held by him.
Key Provisions of the Maharashtra Cooperative Housing Societies Act
- Registration
Forming a society under Maharashtra co-operative housing societies act requires at least five members. Submit model bye-laws, affidavits, and site plans to the Registrar. Approval confirms legal status and enables operations.
| Step | Description | Documents Needed |
| 1. Application | File with Dy. Registrar | Resolution copy, ID proofs |
| 2. Verification | Site inspection | Layout plan, membership list |
| 3. Approval | Issue certificate | Fee receipt, bye-laws |
Read More on: Housing Society Registration
- Membership Rights and Duties
Members gain shares post full payment and receive allotment letters. They must clear dues timely to vote or contest elections. Nomination rules safeguard family interests during transfers.
Rights include:
- Access to society records.
- Participation in general meetings.
- Grievance redressal via committees.
3. General Body and Managing Committee Governance
- The General Body is the supreme decision-making authority.
- Managing Committee members are elected for a fixed tenure.
- All major financial and policy decisions require General Body approval.
Read also: Annual General Meetings (AGMs)
4. Maintenance Charges and Funds
- Maintenance charges must be levied fairly and approved by the General Body.
- Mandatory funds include:
- Repair Fund
- Sinking Fund
- Education and Training Fund
- Repair Fund
- Charges should follow government circulars and society bye-laws.
5. Financial Management and Audit
- Proper books of accounts must be maintained.
- Annual audits by authorized auditors are compulsory.
- Audit reports must be submitted to the Registrar within the prescribed timeline.
Note: Annual statutory audits are compulsory and must be completed by 31st July (within 4 months of financial year closure, per Section 81(1) of the Act and Rule 69). The audit must be conducted by a government-approved auditor from the panel, using Form N-2, covering all financial transactions, fund utilization, and compliance.
6. Elections and Disqualification Rules
- Managing Committee elections must follow state election authority guidelines.
- Members defaulting on dues may be disqualified from contesting elections.
- Conflict of interest rules apply to committee members.
7. Dispute Resolution Mechanism
- Disputes related to society management, maintenance, or membership are referred to:
- Registrar of Co-operative Societies
- Co-operative Court
- Registrar of Co-operative Societies
- Appeals can be filed as per the provisions of the Act.
8. Compliance and Record Maintenance
- Societies must maintain updated records, registers, and statutory filings.
- Non-compliance may lead to penalties, audits, or administrative action.
These key provisions ensure that co-operative housing societies in Maharashtra operate smoothly, protect member interests, and maintain legal compliance under the Maharashtra Co-operative Society Rules.
Read also: RBI Guidelines for Opening Society Account
Maharashtra Cooperative Society Rules
Financial and Maintenance Obligations
Maharashtra co-operative societies rules mandate repair funds, sinking funds, and annual audits. Societies prepare budgets and collect contributions quarterly. Defaults trigger penalties like interest charges.
Common funds:
- Major repair fund: 0.25% of construction cost.
- Education and welfare fund: Half of repair fund.
- Reserve fund: As per bye-laws.
Committee Elections and Governance
Elections occur every five years with secret ballots. Quorum needs 75% members for AGMs under Maharashtra co-operative society rules act. Committees handle daily affairs with joint liability.
Governance tips:
- Transparent minutes and notices.
- No proxy voting beyond limits.
- Annual reports to the Registrar.
Key Amendments and Recent Updates in Maharashtra Cooperative Societies Act
Allotment and Redevelopment Norms
Flats allot via lottery; certificates issued after payments. Redevelopment demands 51% consent and developer MOUs. Draft rules emphasize timelines and transit rents.
Dispute Resolution Mechanisms
Minor issues resolve internally; major ones escalate to Co-operative Courts. Mediation prioritizes harmony per the act.
| Dispute Type | Resolution Body |
| Maintenance dues | Internal committee |
| Elections | Registrar |
| Property disputes | Co-op Court |
Model Bye-Laws Integration under Maharashtra Cooperative Societies Act
Maharashtra Society Bye-laws cover parking, pets, and amenities under Maharashtra co-operative housing societies act. Customize within limits and register changes. They supplement rules for society-specific needs.
Simplify Society Management with NoBrokerHood
NoBrokerHood simplifies housing society management by automating tasks, organising records, and ensuring compliance with Maharashtra Co-operative Society laws, including the latest 2024 amendments.
| Feature | Description |
| Platform Purpose | NoBrokerHood simplifies housing society operations by managing maintenance, complaints, bookings, and finances in one place. |
| Workload Reduction | Automates routine tasks and keeps all society records organised, reducing the burden on managing committee members. |
| Compliance Support | Helps societies stay aligned with the Maharashtra Co-operative Housing Societies Act, Maharashtra Co-operative Society Rules, and Maharashtra Co-operative Societies Rules. |
| Legal Updates | Ensures governance remains transparent with updates from the Maharashtra Cooperative Societies Act 1960 Amendment 2024. |
| Overall Benefit | Makes society management smoother, faster, and more efficient using a single digital platform. |
All Solutions by NoBrokerHood
Check out these related pages to know more:
FAQs
The government of Maharashtra has issued the Maharashtra Cooperative Societies(Amendment) Ordinance, 2024, to amend the Maharashtra Cooperative Societies Act, 1960 on 15 January 2024.
Section 23 of the Maharashtra Co operative Housing societies act states that no society shall refuse admission to membership to any person duly qualified therefore under the provisions of this Act and its by-laws.
According to section 75 of Maharashtra Co operative Housing Societies act, the society must get its books of accounts audited four months after the close of the financial year and within six months after the close of the financial year.
Maharashtra society bylaws provide rules for the management, membership, and governance of cooperative housing societies. The latest Maharashtra housing society bylaws guide elections, financial management, and dispute resolution.
The Maharashtra Housing Society Act provides the rules for running housing societies, and it ensures proper governance, member rights, and dispute resolution
Minimum five members with flat ownership proofs and model bye-laws submit to Registrar for approval.
Annually within six months of financial year-end, needing 75% quorum or adjournment.
Committee approves transfers after clearing dues, with limits on non-members.
Repair, sinking, reserve, and education funds as per bye-laws and audits.
51% member consent, developer agreement, and transit provisions required.