New MCS Rules Fix How Service Charges, Non-Occupancy Fees and Arrears Interest Are Calculated

The Maharashtra Co-operative Societies (Amendment) Rules, 2026, notified on 18 June 2026 and effective from 30 June 2026, set out for the first time a clear, uniform method for calculating three charges that generate the most disputes in housing societies: service charges, non-occupancy charges, and interest on overdue dues. The rules form part of a new Chapter XI-B inserted into the Maharashtra Co-operative Societies Rules, 1961, dealing specifically with housing societies.

What the rules say

Service charges — the portion of maintenance that covers salaries, housekeeping, security, and general upkeep — must now be divided equally among all flats or units, regardless of a flat's carpet area. This differs from other charges: property tax on common areas still follows carpet area, water charges depend on the number and size of inlets, and lift expenses are split equally only among flats in a building that actually has a lift. Non-occupancy charges, levied on flats rented out by their owners, are capped at 10% of the flat's service charges. Interest on overdue society dues, which the general body is free to fix, cannot exceed 12% simple interest per annum.

What this means for housing societies

• Societies billing maintenance on a per-square-foot basis for the service charge component must switch to an equal, per-flat split — larger flats can no longer be charged proportionately more for this head.
• Any bye-law or resolution setting non-occupancy charges above 10% of service charges, or arrears interest above 12% simple per annum, is now out of step with the Rules and should be revised.
• Committees should re-check their maintenance bill format against the Rules' full list of recoverable heads — service charges, property tax, water charges, lift charges, parking, insurance, loan repayments, non-occupancy charges, and fund contributions — since each has its own apportionment method.

The changes apply from 30 June 2026, so societies still billing on the old formulas are technically non-compliant. Managing committees should place a review of maintenance bill structures and applicable bye-law clauses on the agenda of their next committee meeting, and place any required bye-law amendments before the general body.