Maharashtra has over 1.5 lakh registered cooperative housing societies — and the vast majority of them deal with the same recurring problems. Maintenance arrears that nobody acts on. Parking allotments that were never formalised. AGMs held late, or not at all. Committee elections postponed indefinitely. Members who build what they like inside their flats and dare the committee to stop them.
The Maharashtra Co-operative Societies Act 1960 and the Model Bye-Laws 2014 provide clear remedies for each of these situations. The problem is rarely the law — it is that committees either do not know their powers, or are reluctant to exercise them. This article sets out the eight most common problems we see across the societies we manage, and the exact legal tools available to address each one.
This is not legal advice — it is a practical guide to understanding your rights and the available mechanisms. For situations that have escalated or have financial or legal complexity, always consult a qualified professional.
The 8 Problems at a Glance
- 01Maintenance Defaulters — Members who stop paying maintenance are the single most common source of financial stress in Maharashtra housing societies.
- 02Parking Disputes — Who owns which parking space, and what can the society legally regulate about visitor and tenant parking?
- 03AGM Irregularities — A missed deadline, incomplete notice, or quorum confusion can void every resolution your AGM passed.
- 04Illegal Construction and Alterations by Members — Unauthorised internal alterations, external modifications, and encroachment on common areas are widespread.
- 05Accounts Mismanagement and Lack of Transparency — Missing receipts, unaudited accounts, and unexplained expenditure erode member trust and invite Registrar action.
- 06Illegal Transfer Charges and Demands — Societies routinely demand far more than the ₹25,000 transfer premium cap — often disguising excess charges as "welfare fund" or "development contribution".
- 07Tenant and Sub-Letting Disputes — Who must inform the society when a flat is rented out, and what can the society legally control about tenancy?
- 08Managing Committee Disputes and Elections — Committee elections are contested, delayed, or bypassed — often leading to illegitimate committees running societies for years.
Maintenance Defaulters
Members who stop paying maintenance are the single most common source of financial stress in Maharashtra housing societies.
When even two or three flat owners stop paying maintenance for an extended period, the society struggles to meet day-to-day expenses — security staff salaries slip, repairs are deferred, and other members informally carry the cost. Many committees do not know they have robust legal options to recover arrears.
The Remedy
Unpaid maintenance attracts simple interest at the rate approved at the AGM (typically 21% per annum). After formal written demand, the society can file a recovery application before the Co-operative Court under Section 91 of the MCS Act. Persistent defaulters can be denied NOC for flat transfer — which effectively blocks them from selling until dues are cleared.
Section 91, MCS Act 1960 | Bye-Law 66–68
Parking Disputes
Who owns which parking space, and what can the society legally regulate about visitor and tenant parking?
Parking is among the most contested issues in urban Maharashtra housing societies. Members claim ownership of specific spots, residents park in common areas, and committees impose fines without a clear policy in place. In many older societies, original allotment records are incomplete or lost entirely.
The Remedy
Parking allotment must be formalised at the AGM with a resolution. The managing committee can levy parking charges on designated spaces — rates are fixed at the AGM. Unauthorised use of parking by tenants or visitors is a bye-law violation that can be addressed via formal notice. If original allotment is disputed, the Co-operative Court can adjudicate.
Model Bye-Laws 2014 | Co-operative Court under Section 91
AGM Irregularities
A missed deadline, incomplete notice, or quorum confusion can void every resolution your AGM passed.
The AGM is the foundation of CHS governance — yet it is also where procedural failures are most common. Committees hold the AGM after the statutory deadline (6 months from year-end), send notices with fewer than 14 clear days, pass resolutions on items not listed in the agenda, or adjourn meetings without following the correct quorum-wait procedure.
The Remedy
AGM compliance requires strict adherence to Bye-Laws 95–110. The 6-month deadline is firm. Notice must be served to each member individually — a WhatsApp broadcast does not satisfy this. Quorum must be confirmed before business starts. Any member can challenge a defective AGM before the Registrar of Co-operative Societies or the Co-operative Court.
Section 75, MCS Act 1960 | Bye-Laws 95–110, Model Bye-Laws 2014
Illegal Construction and Alterations by Members
Unauthorised internal alterations, external modifications, and encroachment on common areas are widespread.
Members break walls, extend balconies, install unauthorised structures on terraces, or encroach on common passages — often without committee approval or municipal permission. When the society does take note, committees are unsure how far their authority extends and whether they can act unilaterally.
The Remedy
The managing committee can issue a formal notice under the bye-laws requiring restoration to original condition. For structural alterations, the society should also notify the local municipal authority (BMC / TMC). Persistent refusal can be taken to the Co-operative Court. Encroachment of common areas is also actionable under MOFA.
MOFA | Model Bye-Laws 2014 | Local Municipal Act
Accounts Mismanagement and Lack of Transparency
Missing receipts, unaudited accounts, and unexplained expenditure erode member trust and invite Registrar action.
Many housing societies — particularly smaller ones — have weak financial controls. Cash is collected without receipts, vendor payments are made without written work orders, and the annual accounts are either not audited on time or audited by a person not qualified under the MCS Act. Members are refused access to accounts when they ask.
The Remedy
All societies must have their accounts audited annually by a registered auditor empanelled with the Registrar's office. Unaudited accounts are a ground for complaint to the Registrar. Under Section 32 of the MCS Act, any member can inspect the society's books of account during office hours. The managing committee cannot refuse this right.
Section 32 & Section 81, MCS Act 1960 | Model Bye-Laws 2014
Illegal Transfer Charges and Demands
Societies routinely demand far more than the ₹25,000 transfer premium cap — often disguising excess charges as "welfare fund" or "development contribution".
When a flat is sold, the buyer is asked to pay — in addition to the statutory ₹25,000 transfer premium — a range of additional charges: welfare fund, development fund, renovation fund, or "voluntary" contributions. These demands are unlawful. The Maharashtra government capped the transfer premium at ₹25,000 under Section 79A of the MCS Act.
The Remedy
Any amount charged above ₹25,000 as a condition of society NOC or membership transfer is recoverable. The buyer or seller can file a complaint before the Deputy Registrar of Co-operative Societies. Excess amounts already paid can be recovered with interest. The society committee members responsible can face personal liability.
Section 79A, MCS Act 1960 | Government Circular 2009
Tenant and Sub-Letting Disputes
Who must inform the society when a flat is rented out, and what can the society legally control about tenancy?
Members rent out flats without informing the society, fail to obtain police verification for tenants, and do not submit tenancy agreements. Committees then struggle with unknown occupants, maintenance non-payment attributed to absent owners, and security concerns. Equally, some societies overstep and try to approve or reject tenants — which they have no power to do.
The Remedy
Members must give written intimation to the society before renting out their flat. Police verification of tenants is a statutory obligation of the landlord. Non-occupancy charges apply at 10% of service charges for rented flats (not the total maintenance). The society cannot veto a member's tenancy choice — but it can enforce occupancy disclosure and non-occupancy levy under Bye-Law 43.
Bye-Law 43, Model Bye-Laws 2014 | Supreme Court ruling on non-occupancy charges, 2021
Managing Committee Disputes and Elections
Committee elections are contested, delayed, or bypassed — often leading to illegitimate committees running societies for years.
Elections to the managing committee are constitutionally due every five years, but many societies delay them indefinitely — typically because the incumbent committee controls the process. In other cases, committee elections are challenged by aggrieved members, and the dispute drags on while no legitimate body is in authority to take decisions.
The Remedy
Managing committee elections are conducted by the Maharashtra State Co-operative Election Authority (MSCEA). Any member can file a complaint if elections are overdue. In disputed situations, the Registrar can order elections or, in extreme cases, appoint an administrator under Section 78 of the MCS Act. Members should not allow a committee to extend its term without electoral sanction.
Section 73CB & Section 78, MCS Act 1960 | MSCEA Rules
Why These Problems Keep Repeating
The eight problems listed above are not random — they form a recognisable pattern. Almost every issue traces back to one of three root causes: the committee does not know its legal powers, the committee knows but lacks the confidence to exercise them, or the society has no system for documenting decisions and correspondence.
When a maintenance defaulter is allowed to accumulate two years of arrears without any formal action, it signals to other members that non-payment is tolerated. When an AGM is held three months late with a vague notice, it creates grounds for members to challenge every resolution passed at it. When vendor payments are approved informally without written work orders, the auditor flags it — and the committee members become personally exposed.
Individually, each lapse looks minor. Together, they erode governance and make the society very difficult to manage — until a crisis forces action.
A Note on Escalation
Most of the problems above have a legally defined resolution pathway. However, escalating to the Co-operative Court or the Registrar takes time and preparation. The best outcomes come from early, documented action — formal notices served correctly, resolutions passed properly at general body meetings, and correspondence kept on file. By the time a matter reaches the court, the society with better documentation wins more often than the one with the stronger underlying case.
Deeper Guides on Specific Topics
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