What the MCS (Amendment) Rules 2026 changed for housing societies
The MCS (Amendment) Rules 2026 bind every Maharashtra housing society from 22 June 2026: 12% interest cap, carpet-area sharing, new spending limits and more.
Updated 2026-09-23
The Maharashtra Co-operative Societies (Amendment) Rules 2026 give housing societies their own chapter in the 1961 Rules: Chapter XI-B, Rules 106C-1 to 106C-14. The notification is dated 18 June 2026 and was published in the Gazette on 22 June 2026. It has no separate commencement date, so it took effect on publication.
This guide sets out what changed and what a managing committee should do now.
Do the 2026 Rules apply if our society still follows the 2014 bye-laws?
Yes. The Rules are made by the State Government under the Act and bind every housing society, whichever bye-laws it has registered. Where a society’s bye-law says something different from a Rule, the Rule prevails. A society still on the 2014 model bye-laws should read them through the 2026 Rules from 22 June 2026.
The Registrar is to issue new model bye-laws for societies to adopt (Rule 106C-13(1)). As of 23 September 2026 the 2026 model bye-laws are still a draft. Anything in this guide marked “draft” may change in the final text.
Rule 106C-1 also switches off a list of general Rules for housing societies.
Membership: five shares and a ₹500 entrance fee
A new member must now apply with the value of at least five shares and an entrance fee of ₹500 (Rule 106C-4(a)). The 2014 bye-laws asked for ten shares of ₹50 and an entrance fee of ₹100. Associate and provisional members are exempt from this condition.
The application must include a stamped, registered agreement with the builder or seller, a registered gift deed, or a similar legal instrument (Rule 106C-4(b)).
Rules 106C-5 to 106C-9 also create new routes and forms:
- Associate member — Form Y-5A, on a member’s recommendation.
- Provisional member after a member’s death — Form Y-4 (Rule 106C-6(1)). A provisional member has no title to the flat.
- Transfer on a registered family arrangement — Form Y-5 (Rule 106C-6(2)).
- Nomination — each joint member nominates separately for his or her own share (Rule 106C-8).
Interest on arrears capped at 12%
Rule 106C-12(4) item 6 lets the general body fix the interest rate on unpaid charges, but not above 12% a year simple interest. The 2014 bye-laws allowed up to 21%. Our reading is that arrears for periods before 22 June 2026 can carry the rate that was lawful then, and interest for later periods cannot go above 12%. The Rules have no transitional clause.
Carpet area replaces built-up area
Service charges are still shared equally per flat. Several other heads are now shared by carpet area: the property tax on common areas, insurance, lease rent and the Major Repair Fund (Rule 106C-12(4)). Under the 2014 bye-laws, insurance, lease rent and N.A. tax went by built-up area. Non-occupancy charges stay capped at 10% of service charges (item 8).
Managing committee spending limits: ₹1 lakh to ₹5 lakh
The committee may approve a one-time repair and maintenance spend once in a financial year, without the general body, up to these limits (Rule 106C-13(5)(b)):
| Members | Limit |
|---|---|
| Up to 25 | ₹1,00,000 |
| 26 to 50 | ₹2,00,000 |
| 51 to 100 | ₹3,00,000 |
| 101 to 1,000 | ₹4,00,000 |
| 1,001 and above | ₹5,00,000 |
The 2014 limits were ₹25,000, ₹50,000 and ₹1,00,000 (BL 156(a)). Above the limit, the general body must approve first.
Can members attend the general body meeting by video conference?
Yes. Members may attend in person or by video conference provided by the society. The system must record and identify participants and store the proceedings with date and time (Rule 106C-13(3)(b)). Other points in the same Rule:
- The quorum is two-thirds of members or 20, whichever is less.
- A special general meeting needs five clear days’ notice.
- A redevelopment meeting needs 14 clear days’ notice and a quorum of two-thirds of members. It is held in the presence of the Registrar’s representative and video-recorded. The developer is chosen by 51% of all members, counting those attending by video.
Education fund: ₹10 per member per month
Every society must contribute ₹10 per member per month to the Co-operative Education and Training Fund, or the Government’s rate if higher (Rules 106C-7(2), 106C-12(4) item 11(iv)). The 2014 bye-laws charged this per flat. As far as possible, members get one three-hour session a year, and committee members, office-bearers and staff get two.
Funds the Rules list
Rule 106C-11 lists the funds: reserve, sinking (at least 0.25% a year of each flat’s construction cost), repair and maintenance (at least 0.75%), major repair (by area), education and training, election (equal), welfare (voluntary), corpus, and any other fund the general body approves, collected equally.
Recovering dues: Forms Y-6 and Y-7
Recovery under section 154B-29 now has its own procedure (Rule 106C-14):
- The society applies in Form Y-6 with a court fee of ₹100.
- It attaches the member’s ledger, the resolutions approving the charges and the interest, and a copy of its notice.
- The Registrar may give seven days to cure defects and issues notice to the defaulter within 15 days of registering the application.
- The Registrar tries to decide within three months of the first hearing and issues the recovery certificate in Form Y-7.
Checklist for the managing committee
- Lower the interest rate in the billing software to 12% or less for periods from 22 June 2026, and minute the general body’s rate.
- Move insurance, lease rent, the common-area property tax and the major repair fund to carpet-area sharing.
- Update the admission forms to five shares and a ₹500 entrance fee.
- Set up recordable video-conference attendance before the next general meeting.
- Start the education fund at ₹10 per member per month.
- Keep certified copies of every levy and interest resolution ready for a Y-6 application.
What the law says
- Rules 106C-1 and 106C-4: general Rules switched off; five shares, ₹500 entrance fee, registered instrument.
- Rules 106C-5 to 106C-9: associate and provisional members, family arrangement, education, nomination.
- Rules 106C-11 and 106C-12(4): funds and sharing. Item 6 is the 12% cap and item 8 the non-occupancy charge.
- Rule 106C-13: governance, video conference, quorum, redevelopment meetings, spending bands.
- Rule 106C-14 with section 154B-29: recovery.
- 2014 model bye-laws: the earlier values were in BL 13, 66, 70 and 156(a).
Registered bye-laws may add detail but cannot contradict these Rules.
More questions on charges and interest: Maintenance charges FAQ.
Sources
- Maharashtra Co-operative Societies (Amendment) Rules 2026, Maharashtra Government Gazette Part IV-B Extraordinary No. 366, 22 June 2026 (Notification No. Sanini 0321/C.R.41/13-C, 18 June 2026)
- Model Bye-laws of Co-operative Housing Society (flat-owner type), 2014 — Commissioner for Co-operation
- Draft Model Bye-laws 2026 — Commissioner for Co-operation
- Maharashtra Co-operative Societies Act 1960 — Commissioner for Co-operation
General information, not legal advice. Your society's registered bye-laws may differ; for a dispute or a decision with legal or financial consequences, consult the Registrar's office, an advocate or a chartered accountant.