Maharashtra Cooperative Societies Act

The fundamental facts of the Maharashtra Cooperative Societies Act, 1960, which controls nearly two lakh cooperative societies in the state, are explain in this article.

There are about two lakh cooperative societies in Maharashtra, with over 50 million members. The Maharashtra Cooperative Societies Act, 1960 governs these co-operative societies, which include cooperative housing societies.


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What exactly is the Maharashtra Cooperative Societies Act?

The Maharashtra Cooperative Societies Act, enacted on January 26, 1962, offers a complete framework for the registration, membership, incorporation of responsibilities and privileges of cooperative societies across Maharashtra. As directed by the centre, the Maharashtra government adopted an ordinance modifying the Maharashtra Cooperative Societies Act on February 13, 2013. The changes went into effect on February 14, 2013.


Sections of the Maharashtra Cooperative Societies Act that pertain to housing societies

Section One: Clauses (5), (6), (7), (8), (10), (10-ai), (10-aii), (10-aiii), (13), (14), (16), (17), (18), (20-A), (21) (31)

Section two

3, 3A, 4, 5, 7, 9, 10, 12, 13, 14, 15, 17, 18, 19, 20, 20A, 21, 21A, 22, 23, 25, 25A, 31, 33, 34, 35, 36, 37, 38, 40, 41, and 42

Section 50

Section 62

Sections 64, 65, 66, 67, 68, 69, 70, 71, 71A, 72, 73, 73ID, 73C, 73CB, 73CC, 73F, 73I, 75, 76, 77, 77A and 78A

  • Section 79, 79A and 79AA
  • Sec-80 to 89A
  • 91 to 100
  • 102 to 110
  • Sec-145 to 148A
  • Sec 149 to 154
  • Sec154A
  • Sec 155 to 168



What are cooperative housing societies, according to the Maharashtra Cooperative Societies Act?

The purpose of a housing society, according to the Maharashtra Cooperative Societies Act, is to offer its members with open plots, flats, and apartments, as well as shared facilities and services.


Maharashtra Cooperative Societies Act


Housing societies classified under the Maharashtra Cooperative Societies Act

Housing society based on tenant ownership

These are housing societies with the goal of allocating plots or flats on a land parcel controlled by the society on a leasehold or freehold basis, while the dwellings are owne by the members.


Housing cooperative for tenants

These housing societies aim to provide flats to their members while owning either the land or the building on a freehold or leasehold basis.


Other housing cooperatives

These include home mortgage cooperative societies, house building cooperative housing societies, and premises cooperative societies with all units being offices or commercial establishments.


Maharashtra Cooperative Societies Act: Rules for Cooperative Housing Societies Registration

A housing society cannot be formed under the Maharashtra Cooperative Societies Act unless at least five people from different families or at least 51 percent of the total number of flats entitled to become members under this Act join the housing society’s registration proposal.



In cooperative housing associations, plots, apartments, or homes are assigned by lot.

The legislation requires that land, flats, houses, or other dwelling units be allotted to members by the committee of a housing society, strictly by lot, unless there is a contract to the contrary. Every member of a cooperative housing society who has been given plots, flats, houses, or other dwelling units shall be granted a certificate of allocation under the cooperative housing society’s stamp and signature. When the member’s dues are paid in full, the certificate must be issue.


Membership in housing societies is restricte under the Maharashtra Cooperative Societies Act.

A housing society should not accept more members than the number of apartments or plots available. However, if the plot owner created and sold flats in accordance with the requirements, the plot owner’s cooperative housing society may admit an organisation of flat purchasers to its membership in lieu of the original plot owner member.


The Maharashtra Cooperative Societies Act states that a share or interest is not subject to attachment.

A member’s share or interest in loan-stock issued by a housing society is not subject to attachment or sale under any court decision or order for or in respect of any obligation or liability committed by the member.


Under the Maharashtra Cooperative Housing Society Act, who is a defaulter?

In the context of housing societies, a defaulter is a member who fails to make a payment to the society within three months after receiving a written notice, delivered by post under a certificate of posting, requesting payment of dues.


Maharashtra Cooperative Societies Act: Members’ Rights and Duties

A member of a CHS has the following rights and obligations under the Maharashtra Cooperative Societies Act:


  • The cooperative housing association must provide him a certificate of assignment.
  • If a member is a defaulter, they are ineligible to be appointed, nominate, elected, co-opted, or become a member of a committee.
  • The member of the society is responsible for paying the society’s dues on time.
  • The member will be ask to quit the unit when the building is being redevelope.


CHS members’ voting rights under the Maharashtra Cooperative Societies Act

  • Each society member gets one vote.
  • Associate members will be able to vote with the written agreement of a member.
  • Provisional members have no voting rights.
  • When there are joint members, the individual whose name appears first on the share certificate has the ability to vote. In his absence, the person whose name comes second will be allow to vote.



Transfer of share, right, title, and interest in cooperative housing societies under the Maharashtra Cooperative Societies Act

Members of Maharashtra cooperative housing societies may transfer their part, right, title, and interest in the society using registered paperwork.


Transfer of interest upon the death of a member under the Maharashtra Cooperative Societies Act

When a member dies, the society transfers the dead member’s part, right, title, and interest in property to a person based on testamentary documents, succession certificates, legal heirship certificates, or family arrangement agreements. Following the death of a member, the society will admit the nominee as a provisional member until the legal successor is admitted as a member in lieu of the dead member.


Maharashtra Cooperative Societies Act



Maharashtra Cooperative Societies Act: Restriction on transfer of a member’s share or interest in a CHS

In the case of a cooperative housing association, no transfer of a member’s share or interest or occupation right. Except to his heir or a nominee, can be effective unless:

  • The housing society’s dues have been paid.
  • The transferee applies for and is accepte into the cooperative housing society.

The terms of the lease control the transfer of a portion or interest in leasehold properties.

Under the Maharashtra Cooperative Societies Act, cooperative housing societies in Maharashtra have a charge on the share and interest of a member, even if he is past or deceased, to the extent of dues owed by him to the society.


Maharashtra Cooperative Societies Act, 1960: Recent Developments

Cooperative societies cannot refuse access to unmarried women, members of specific communities, or those who consume certain foods: SC

The Supreme Court ruled in November 2021 that cooperative groups cannot exclude access to unmarried women. Persons from specific areas, or those who eat certain types of cuisine. The Supreme Court made this statement while issuing a decision on a different subject related to the application of the Maharashtra Co-Operative Societies Act.

“Are you aware of what societies are doing to exercise this Fundamental Right?” They are not allowing single women to live in apartments! Members of a certain community are not permitted! They are depriving those who eat certain foods! This is the truth! This is not permitted! “We cannot accept this mentality from societies,” the Supreme Court stated.


According to the Apartment Act, maintenance fees will be based on the size of the apartment.

The Maharashtra Apartment Owners Act imposes maintenance fees based on the size of a unit. The same requirement, however. Does not apply to housing society apartments registered under the Maharashtra Cooperative Societies Act. According to the deputy registrar of cooperative societies for the Pune metropolitan zone.

This is because, in the case of cooperative housing societies, the society owns the land and the building. And the maintenance fees are split equally among all members. Regardless of the size of their apartments.


The Cabinet has approved an amendment to the Maharashtra Cooperative Societies Act 1960.

May 6, 2021: The Maharashtra government has accepted a proposal to alter the Maharashtra Cooperative Societies Act, 1960. To ensure that cooperative society members retain their voting rights in the next elections. A member is require by law to attend at least one cooperative society meeting every five years or he would be declare ‘inactive’ and lose his voting privileges. The second wave of the COVID-19 epidemic has now disrupted the functioning of a number of cooperative organisations around the state.


Members of a cooperative housing society are jointly and severally liable for all MC decisions.

January 2021: The Maharashtra government announced in January 2021 that all elected members of the managing committee. (MC) Of cooperative housing societies established under the Maharashtra Co-operative Societies Act. 1960, must execute a bond that holds them ‘jointly and severally’ responsible for all decisions made by the committee. A new form, M-20, has been incorporate into the MCS (Amendment) Rule, 2002. Requiring elected members of the managing committee to declare that they are jointly and severally accountable for all acts and omissions harmful to the interests of the society.


The Registrar cannot order housing societies to grant NOCs to their members: Bombay High Court

July 2019: In July 2019. The Bombay High Court declared that a deputy registrar of cooperative societies does not have the authority to order a cooperative housing society. To grant no-objection certificates (NOC) to one of its members for the upgrading and change of use of his premises. Acting on a member’s complaint, the deputy registrar authorised. A Mumbai housing society, Shree Raghunandan Cooperative Housing Society. To provide the appropriate NOCs to the member for merging four tenements and altering the premises.’ Use from residential to commercial on July 9, 2019. “It is definitely a disagreement between a member and the society that would necessitate adjudication before some other venue.” says the judge.




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