Govt rewriting hsg soc rulebook for modern living

“The revised Model Bye-laws must be notified without delay, as rules alone cannot ensure smooth functioning. The bye-laws should be clear, practical and fully aligned with the new provisions so that housing societies, managing committees and members have certainty about implementation,” said Ashwini Bulakh of Sahakar Bharati Housing Cell, Maharashtra.

MUMBAI: After notifying the rules for cooperative housing societies, the state government is now revising the model bylaws to address the changing nature of residential developments. The new bylaws are expected within the next two months.

(HT Photo)

“The revised Model Bye-laws must be notified without delay, as rules alone cannot ensure smooth functioning. The bye-laws should be clear, practical and fully aligned with the new provisions so that housing societies, managing committees and members have certainty about implementation,” said Ashwini Bulakh of Sahakar Bharati Housing Cell, Maharashtra.

Officials from the state cooperation department said the current bylaws were framed in 2014, and deal primarily with standalone buildings and housing societies. “In the last decade, high-rise buildings and integrated townships have become common, and their requirements are different. Issues relating to parking spaces and charges, common amenities, maintenance of common areas and individual units, and other operational aspects will be addressed in the revised bylaws,” said an official with the department.

A committee headed by deputy registrar Rajesh Lovekar will draft these bylaws, said the official, adding, “Bylaws are a rulebook for cooperative housing societies. While the rules notified are based on the Maharashtra Cooperative Societies Act, 1960, the bylaws simplify and operationalise those rules.”

The official said the new bylaws will cover various aspects, including the objectives of the society, its share capital, membership provisions, methods of raising funds, utilisation of funds and several other operational matters.

They will also include provisions relating to dispute resolution, the responsibilities of societies and their members in case of leakages, and statutory compliances such as audits and maintenance of accounts.

Officials explained that model bylaws are not binding on housing societies, which are free to frame their own bylaws subject to them being approved at the annual general meeting and by the registrar. “The registrar has the authority to reject the proposed bylaws if they are inconsistent with the Act or the rules,” the official said.

There are more than 125,000 cooperative housing societies in Maharashtra, of which more than 60,000 are located in the Mumbai Metropolitan Region (MMR).

The housing societies rules notified by the government last month are a detailed regulatory framework for cooperative housing societies. The new rules streamline governance by defining permissible maintenance and service charges, capping interest on delayed payments at 12% annually and non-occupancy charges at 10% of service charges, while prohibiting arbitrary levies.

They also lay down clear procedures for flat nomination, inheritance and succession, including mandatory public notices in cases where no nominee exists, and introduce provisions for repair and debt redemption funds to ensure long-term financial stability.

The new rules strengthen governance by making the general body the supreme decision-making authority, permitting virtual general body meetings, mandating annual training for office-bearers and members, and enhancing accountability of managing committees, thereby addressing long-pending issues relating to ownership transfers, succession disputes, maintenance charges and society administration.