New Rules Require Housing Societies to Fund Committee Training and Elections

Chapter XI-B of the Maharashtra Co-operative Societies Rules, 1961 — notified on 18 June 2026 and in force since 30 June — has quietly introduced a compliance item that many managing committees are yet to budget for: every registered housing society must now maintain a dedicated Education and Training Fund and a separate Election Fund, funded through member contributions, as part of its regular accounts.

What the rule requires

The Education and Training Fund is meant to pay for annual training of members, managing committee officers and society employees, delivered through institutions notified by the state government. The idea is to professionalise how committees are run, since most office-bearers take on roles like secretary or treasurer without formal training in cooperative law or accounting. Separately, the Election Fund is to be built up through equal contributions from members specifically to cover the cost of conducting the society's next managing committee election, rather than that expense landing as a surprise item in the year it falls due.

Spending limits and financial guardrails

• Managing committees can approve one-time maintenance and repair expenditure without a general body vote only up to fixed limits — from ₹1 lakh for societies with up to 25 members, scaling up to ₹5 lakh for societies with 1,001 or more members.
• Non-occupancy charges are capped at 10% of a flat's service charges, and interest on any arrears — maintenance or otherwise — cannot exceed 12% simple interest per annum.
• The sinking fund must be at least 0.25% per annum of a flat's certified construction cost, and the repair and maintenance fund at least 0.75% per annum, giving societies a statutory floor to budget against.
• Service charges must be split equally across all flats regardless of size, while lift charges, property tax and water charges follow their own separate apportionment formulas.

With most societies now finalising FY 2025-26 accounts ahead of the September 30 AGM deadline, managing committees should add the Education and Training Fund and Election Fund as new line items in this year's budget and maintenance bill structure, rather than retrofitting them later. Auditors reviewing this year's accounts are likely to flag their absence, since the funds are a requirement under the Rules rather than an optional resolution of the general body.