Maharashtra Housing Society Rules Explained
Mumbai Housing Societies:
Who Pays What?
New Maharashtra Co-operative Society bye-laws finally clarify the maintenance charge debate — owners, tenants, builders, and societies each have a defined role. Here's the complete breakdown.
If you live in a cooperative housing society in Mumbai or anywhere in Maharashtra, you've likely wondered — or argued about — maintenance charges. Should the owner pay even if the flat is locked? What about tenants? Who handles unsold flats? The Maharashtra Co-operative Societies (MCS) Act, 1960 and the model bye-laws under MOFA (Maharashtra Ownership of Flats Act) answer all of this. Here's exactly who pays what.
Core Rule
Who Is Responsible for Maintenance Charges?
Maharashtra's model bye-laws establish a clear chain of responsibility. Regardless of whether a flat is occupied, locked, or rented, maintenance must be paid. Here's each party's obligation:
- Pays all maintenance charges — even if the flat is vacant or locked
- Legally obligated as a society member under MCS Act
- Non-payment leads to 21% p.a. interest + legal action
- Cannot deny liability by citing non-occupancy
- Pays monthly maintenance in place of owner (as agreed in rent agreement)
- Enjoys all facilities: water, lift, gym, pool, parking
- Cannot be charged more than the owner's rate
- Owner still legally responsible if tenant defaults
- Pays maintenance for all unsold flats in the society
- Liability continues until the flat is sold and transferred
- Cannot shift this burden to the society or existing members
- Also responsible for 5-year structural defects under RERA
- Collects maintenance from all members via demand notice
- Must maintain transparency with itemised bills
- AGM decides and approves annual maintenance budgets
- Can initiate Sec. 101 recovery proceedings on default
What's Inside Your Bill
All Components of Maharashtra Society Maintenance
Your monthly bill is not a single flat charge — it's a combination of heads. Each is calculated differently and governed by bye-laws 65–71 of the MCS model bye-laws:
| Charge Head | Basis | Details |
|---|---|---|
| 🏢 Service / Maintenance Fee | Per Flat | Staff salaries, admin expenses, stationery, office utilities |
| 🔧 Building Repairs Fund | Per Sq.Ft. | Routine upkeep, plumbing, electrical, painting of common areas |
| 💧 Water Charges | Per Sq.Ft. | Common meter usage divided among flats; collected on govt's behalf |
| 💡 Common Electricity | Per Flat | Lifts, corridors, security lights, water pumps |
| 🏦 Sinking Fund | Per Sq.Ft. | Min. 0.25% of construction cost p.a. — for major future repairs |
| 🛗 Lift Maintenance | Per Flat | AMC charges, electricity, and running costs of lifts |
| 🛡️ Insurance | Per Sq.Ft. | Building and infrastructure insurance premium |
| 🚗 Car Parking | Per Slot | Only charged if you hold a designated parking space |
| 🏛️ Non-Occupancy Charges | % of Service Fee | Max 10% of service charges — only when flat is rented to a non-family member |
| 📚 Education & Training Fund | Per Flat | Mandatory statutory contribution |
| 🗳️ Election Fund | Per Flat | Mandatory statutory contribution (₹10/flat/month) |
How It's Calculated
3 Methods to Calculate Maintenance Charges
Under MOFA bye-laws, societies must use a hybrid model — some heads are per-flat, others are per-sq.ft. Societies cannot charge all heads on area basis alone.
📐 Calculation Methods
Rented Flats
Non-Occupancy Charges: When Do They Apply?
When a flat owner rents out their unit to someone outside their family, the society levies non-occupancy charges (NOC). These are separate from and in addition to regular maintenance.
NOC Charge Cap: 10% of Service Charges
By law, non-occupancy charges cannot exceed 10% of the basic service charges.
Example: If your monthly service charge is ₹3,000, the NOC charge cannot exceed ₹300/month. Any society charging more than 10% is in violation of the Maharashtra Cooperative Societies Act and court orders.
Defaulters
What Happens If You Don't Pay?
Late payment of society maintenance isn't just a minor inconvenience — it carries legal and financial consequences:
Late Payment Interest Rate
The MCS Act allows societies to charge up to 21% per annum simple interest on overdue amounts (or a lower rate if the General Body decides so). Interest accrues from the due date until full and final payment.
Legal action path: Secretary notifies committee → Committee initiates recovery under Section 101 of the MCS Act → Registrar issues recovery certificate → Recovery Officer may attach or auction your property.
Tax Implications
Is GST Applicable on Society Maintenance?
GST on housing society maintenance in Maharashtra works on a two-threshold system:
Common Questions
Frequently Asked Questions
Whether you're an owner, tenant, or investor, Maharashtra law leaves little ambiguity. Owners always pay — even for empty flats. Tenants pay when they occupy. Builders cover unsold units. Societies must bill transparently, hold regular AGMs, and follow due process before taking action on defaults. Know your rights, read your bye-laws, and always insist on an itemised bill.