Reminder: Welfare Fund Contributions Voluntary, Election Fund Mandatory Under MCS Amendment Rules 2026

Managing committees reviewing their member charges should note two points from a legal column in the Free Press Journal, updated on July 13, 2026. The column, written by Sharmila Ranade of Mumbai Grahak Panchayat, says the Maharashtra Co-operative Societies (Amendment) Rules, 2026 were notified on June 18. It describes how the rules reshape the charges a housing society can levy on its members.

Election fund and welfare fund

According to the column, every society must now create an election fund, which is meant to cover the cost of conducting committee elections. By contrast, contributions to a welfare fund are described as voluntary for members. In practice, a society should not treat a welfare fund payment as a compulsory dues item that can be recovered from a member who declines to pay.

The column does not state the rupee amount for either fund, and it does not say how the election fund is to be built up. Committees should read the rules themselves for those details.

Other charge heads mentioned

The same column lists several other points under the rules. Maintenance charges were earlier levied under bye-laws 66 and 67, whereas the new rules set out each member's share, with Rule 106C-12(4) giving a detailed list of charges and how they are apportioned. Insurance charges and a new major repair fund are based on carpet area. A 10% service charge applies where a flat is sub-let. Interest on defaulters is stated as a flat 12%, where earlier it could be up to 12% as decided by the general body. Car parking charges are levied at the rate fixed by the general body.

What this means for housing societies

• Check whether your society has opened a separate election fund and how its contribution is shown in the member bills.
• Make sure any welfare fund collection is presented as voluntary, and keep a record of who has chosen to contribute.
• Confirm that insurance and major repair fund charges are calculated on carpet area, not on a flat rate per flat.
• Review the general body resolution fixing car parking charges, since the column says the general body sets that rate.

The column does not state a commencement date, a transition period or any rupee rates for the funds, so societies should verify these against the official notification before changing their billing. Committees may also want to place the revised charge structure before the next general body meeting.