Maharashtra's Draft Model Bye-Laws 2025-26: What Every CHS Should Know Before They Are Enacted

The existing Model Bye-Laws governing Maharashtra's cooperative housing societies have been in use since 2014 — a decade that has seen the rise of electric vehicles, remote working, digital communication, and widespread redevelopment across Mumbai, Thane, and Navi Mumbai. The 2014 bye-laws were drafted before virtual meetings were conceivable, before EV charging was a practical concern, and before the 2019 amendments added a dedicated housing society chapter to the MCS Act.

The Maharashtra Government has responded with a comprehensive draft of revised Model Bye-Laws 2025-26. The draft was released for public consultation, received over 300 suggestions from residents and legal practitioners, and is now being finalised. While societies cannot formally adopt the new bye-laws until the gazette notification is issued, the draft gives managing committees and flat owners a clear signal of what is coming — and what to start preparing for now.

1. Virtual and Hybrid AGMs (Proposed)

The draft proposes formal recognition of virtual and hybrid Annual General Body Meetings (AGBMs). Societies would be permitted to conduct meetings entirely online or in hybrid format, with members joining via video conferencing. The quorum threshold would remain at two-thirds of total members or 20 members, whichever is less.

Notably, the draft also addresses the chronic problem of adjourned meetings: if a meeting is adjourned due to lack of quorum, it may be reconvened within 7 to 30 days without requiring a fresh quorum to be met. This provision, if enacted, would end the cycle of failed AGMs that plagues many smaller societies where achieving full quorum is difficult.

2. Provisional Membership for Heirs of Deceased Members (Proposed)

One of the most practically useful proposals concerns what happens to society membership when a flat owner dies. Under the current 2014 bye-laws, the process of transferring membership to the legal heir or nominee can take months — during which time the heir has no formal standing at General Body Meetings, cannot vote, and often has difficulty engaging with the managing committee on maintenance or repair matters.

The draft proposes that heirs and nominees of deceased members be permitted to attend General Body Meetings as “provisional members” immediately after the death of the original member, before formal ownership transfer is completed. Provisional members would be able to participate in discussions but would not have voting rights until legal title to the flat is established in their name. This is a sensible and long-overdue reform that reduces uncertainty for grieving families navigating society bureaucracy.

3. Water Charges and Service Charge Reforms (Proposed)

The draft proposes two significant changes to how recurring charges are calculated and shared.

Water charges by number of taps. Currently, water charges in most societies are either divided equally or apportioned by carpet area — a method that correlates poorly with actual consumption. The draft proposes calculating water charges based on the number of taps in each flat. A 2BHK with more bathrooms would pay more than a 1BHK with fewer — a more equitable method that removes one of the most common sources of maintenance billing disputes.

Service charges divided equally. Common service charges — security staff, lift operators, common area electricity, cleaning — would be divided equally among all flats, regardless of carpet area. This reverses a longstanding practice in some societies of charging larger flats proportionally more for services that every flat uses equally. Societies that currently apportion service charges by area would need to revise their billing structure once the new bye-laws are enacted.

4. Financial Reforms: Interest, Funds, and Expenditure Powers (Proposed)

The draft consolidates several financial changes that bring the bye-laws into alignment with the December 2025 MCS Act amendments and address gaps in the 2014 framework:

• Penal interest capped at 12% per annum (simple interest) on maintenance arrears — down from 21%, and no longer compoundable. Any existing bye-law specifying a higher rate will be overridden once the new bye-laws take effect.
• Sinking fund minimum of 0.25% of construction cost per annum, and a separate repair and maintenance fund minimum of 0.75% of construction cost per annum. These are proposed mandatory minimums — societies that currently contribute less would need to revise their annual budgets accordingly.
• Non-occupancy charges capped at 10% of service charges. Members who let out their flats currently face variable non-occupancy charges across societies; the cap standardises and limits this levy.
• Managing committee expenditure authority raised to ₹3 lakh without requiring General Body approval. The previous threshold was lower and created administrative bottlenecks for routine repair and maintenance work.
• Mandatory welfare fund for social, cultural, and recreational activities — a formal requirement that many societies already operate informally but without a statutory basis.

5. Governance and Membership Changes (Proposed)

Commercial units recognised as members. The draft proposes formally recognising shops, offices, and commercial establishments within a housing society building as society members. Under the 2014 bye-laws, such units existed in a legal grey area — they used common areas and facilities but had no clear standing in society affairs. Formalising their membership would allow them to participate in redevelopment discussions and other General Body matters, while also clarifying their maintenance obligations.

Casual vacancies filled without Registrar intervention. Currently, if a managing committee member resigns or becomes disqualified, the Registrar's involvement is sometimes required to fill the vacancy. The draft would empower societies to fill casual vacancies internally, ensuring continuity without bureaucratic delay.

Adoption of model bye-laws made compulsory. The draft proposes that all cooperative housing societies in Maharashtra be required to adopt the new model bye-laws once notified. Societies with their own registered bye-laws — some dating back decades — would need to amend and re-register them to align with the new model. This is a significant administrative exercise, and societies should begin reviewing where their current bye-laws diverge from the draft now, so they are not caught unprepared.

Summary of Proposed Changes

All items below are proposed in the draft bye-laws and have not yet been gazetted.

What Managing Committees Should Do Now

The draft bye-laws are not yet law — but they represent the clear direction of travel. Committees that use this period to audit their existing bye-laws and internal practices will be far better placed when the gazette notification arrives.