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Maharashtra Housing Societies Raise Concerns Over Draft Rules for Redevelopment and Maintenance

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Maharashtra Housing Societies Raise Concerns Over Draft Rules for Redevelopment and Maintenance

Maharashtra Housing Societies Raise Concerns Over Draft Rules for Redevelopment and Maintenance

Maharashtra Housing Societies Raise Concerns Over Draft Rules for Redevelopment and Maintenance

Housing societies in Maharashtra have raised concerns about several aspects of the draft rules framed under the Maharashtra Cooperative Societies Act, 1960. The feedback was submitted after the state government published the draft on April 15, inviting public comments until May 15. Among the primary issues raised were the uniformity in maintenance charges, the procedures for transferring shares, and quorum requirements for redevelopment meetings.

The state government received over 300 objections and suggestions, with housing societies highlighting the need for clarity and consistency in the implementation of the rules. The draft rules, which have been pending since the Act was amended in 2019, aim to standardise various processes across cooperative housing societies in Maharashtra. Some of the key proposals in the draft include a uniform service charge on a per-unit basis, which would replace the current practice of calculating maintenance fees based on carpet area. This change is expected to address disputes over maintenance charges among society members.

Additionally, the rules propose reducing the interest on delayed maintenance payments from 21% per annum to 12% simple interest, providing relief to residents struggling with arrears. The rules also suggest creating dedicated funds for reserves, sinking funds, major repairs, education, and welfare, and formalising society name reservations under Rule 106 C-2. The draft simplifies the process for filling casual vacancies in managing committees without needing election authority clearance.

For redevelopment projects, the proposed rules increase the borrowing limit for societies to 10 times the approved land value (up from 10 times the society's own funds) and mandate that the developer selection process be video-recorded in the presence of at least 51% of the members. However, some objections were raised about these provisions, particularly around the borrowing limit and video-recording requirement.

While housing federations have welcomed the draft rules, they stress the urgency of swift implementation. Many believe that the delay in finalising the rules has left housing societies vulnerable to legal ambiguity. The final rules are expected to be cleared by the state cabinet in June, marking a significant step toward resolving long-standing issues in cooperative housing governance.

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About the author
Sandeep Sadh

About Sandeep Sadh

Sandeep Sadh has been in the real estate business since 1993 in Mumbai. He has expertise in Buying, Selling, Leasing properties in Mumbai and a deep understanding of legal and tax related matters due to his experience.

Summary

Over the years, he has experienced the City's growth. He has been a columnist in the Times of India with numerous articles, which bring about a clear picture of the real estate market in Mumbai. He is a regular on NDTV, CNBC, ET Now Real Estate and Zee News, giving his experienced quotes as and when required.

Sandeep Sadh has used information and technology since the year 1998 and now what people call it Prop Tech to cater to the needs of Home Buyer, Seller, Investor and Corporates, HNI and NRI looking to Buy/Sell or Lease their properties in the Mumbai Property Market.

Sandeep has a holistic experience of real estate be it Leasing an Apartment for your CEO in the most upmarket buildings, to enter into a long lease for your office in Mumbai in prime buildings or an Investment in good projects with a detailed analysis keeping in mind the Demand and Supply and other micro factors of the project/property.

Sandeep Sadh has developed a few websites like www.mumbaipropertyexchange.com, www.realestatemumbai.com, www.propi.in which augment the real estate consulting business.

Right from Investments in Primary Markets to Selling, leasing and specializing for NRI’s all over the world. He is an expert in NRI Home Buying and Selling and has a good understanding of the Income Tax laws pertaining to Selling a Property and Repatriating funds overseas or reinvesting based on Capital Gains etc.

Experience

  • Residential Leasing
  • Commercial Leasing
  • Residential Home Buying
  • Commercial Property Buying
  • Investment Properties with complete Property Management as your Real Estate Family office

While transacting in the above segments, he has complete experience and deep understanding of the paper work, his areas of expertise are :

  1. Drafting of the Leave and License Agreements
  2. MOU for Buying/Selling Properties
  3. Drafting Agreement for Sale
  4. Gift Deeds
  5. Computing of Capital Gains with current ready reckoner values
  6. Drafting of Supporting Power of Attorney.

As an add on Service, Sandeep Sadh has tied up with various Professionals like Lawyers and Chartered Accountants who add value in transacting and specially services for Non Resident Indians.

Application to Income Tax for Lower Tax Deduction Certificate – Through a qualified CA and keeping a grip on the traction so that the remittance back to Non Resident Indians after Selling the property is seamlessly transferred.

You can connect with Sandeep Sadh on ssadh@mumbaipropertyexchange.com

LinkedIn - https://www.linkedin.com/in/sandeepsadhmpe/

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