New MCS Rules Let Heirs Transfer Membership Via Family Arrangement Deed

The Maharashtra Co-operative Societies (Amendment) Rules, 2026, notified on 18 June 2026 and gazetted on 22 June 2026, added a faster route for transferring a deceased member's flat and membership to their legal heirs. Instead of a court-issued succession certificate or letters of administration, heirs can now use a registered deed of family arrangement to settle who takes over the share, right, title and interest in the flat.

How the new process works

Previously, when a member died without a nominee or without leaving a will, heirs typically had to obtain a succession certificate from a civil court before a society would recognise a transfer — a process that could take months and cost significant legal fees. Under the amended rules, legal heirs can instead execute a registered family arrangement deed setting out how the flat is to be divided or held, then apply to the society in Form Y-5 along with an indemnity bond protecting the society against future claims. The society must publish a public notice in two widely circulated local newspapers inviting objections. If none arise within the prescribed period, the managing committee can register the transfer as per the deed. Where a nominee exists, the older Form Y-4 route still applies, admitting the nominee as a provisional member pending full succession.

What this means for housing societies

• Managing committees should update their transfer-of-membership checklist to include the Form Y-5 route alongside the existing nominee (Form Y-4) and succession-certificate procedures.
• Societies must budget time and cost for publishing the mandatory newspaper notice before any family-arrangement transfer is finalised.
• Secretaries should insist on the indemnity bond and registered deed before processing a transfer — an unregistered or oral family settlement does not qualify under the new rule.

The rule is already in force, so societies handling any pending membership transfer following a member's death should check whether heirs qualify for this shorter route. Committees unsure how to apply Form Y-5 alongside existing bye-law provisions should consult their society's legal or management advisor before acting on an application.