Complete Guide to Maharashtra Co-operative Housing Society Bye-Laws 2026

Bye-Law 8 sets out who is eligible for membership in a co-operative housing society. Membership is typically restricted to persons who purchase a flat in the society's building, subject to approval by the managing committee. The committee cannot unreasonably refuse admission to a bona fide purchaser.

Bye-Law 38 governs the transfer of flats. When a member wishes to sell their flat, the society must be informed in writing. The transferee must apply for membership, and the society is entitled to collect a Transfer Fee (currently a maximum of ₹25,000 for residential flats under the model bye-laws) and a Non-Occupancy Charge if the transferee does not reside in the flat.

Share certificates (Form J-1) must be issued to members and updated on every transfer. The Society's Register of Members must be updated within 30 days of the transfer being approved by the managing committee.

Bye-Law 46 requires every society to charge a monthly maintenance contribution from each member. The maintenance amount is calculated based on the area of the flat and the society's actual operational expenses, divided proportionately. Maintenance must cover salary, utilities, housekeeping, insurance, and administrative costs.

Bye-Law 47 mandates a Sinking Fund contribution. The minimum rate is 0.25% per annum of the construction cost of the building (as certified by a registered valuer), collected from all members monthly. The Sinking Fund may only be used for major structural repairs and cannot be used for day-to-day expenses.

A separate Repair Fund (also called Major Repairs Fund) must be maintained for non-structural repairs, painting, plumbing, electrical work. The managing committee determines the monthly contribution rate at each AGM, based on projected repair needs. Both the Sinking Fund and Repair Fund must be maintained in separate bank accounts.

Under Bye-Law 173, every co-operative housing society must maintain a prescribed set of registers. These are not optional and are verified by the auditor every year. Missing or incomplete registers can lead to an adverse audit report, which the society must disclose to all members.

The mandatory registers include: Register of Members, Register of Shares, Register of Debentures (if any), Register of Nominations, Register of Non-Occupancy Charges, Register of Transfers, Register of Mortgages and Charges, Defaulter Register, Bill Register, Receipt Register, and the Minutes Book of general body meetings and managing committee meetings.

All entries in these registers must be made within the prescribed timeframes, typically 30 days of the relevant event. The auditor checks the registers against source documents (bills, receipts, resolutions) and flags any discrepancy.

Housing societies are liable to register for GST under two conditions: (1) if monthly maintenance per member exceeds ₹7,500, or (2) if the society's total annual turnover (all maintenance collections) exceeds ₹20 lakhs. If both conditions are met, the society must charge 18% GST on the maintenance amount.

Critically, only the amount above ₹7,500 per member per month is exempt from GST. If a member's monthly maintenance is ₹8,000, the entire ₹8,000 is subject to 18% GST, not just the ₹500 above the threshold. This is a common misunderstanding that leads to incorrect billing.

Societies that cross the GST threshold must file GSTR-1 (outward supplies) and GSTR-3B (summary return) monthly or quarterly, maintain a proper GST register, and issue tax invoices (not mere receipts) to members. Input Tax Credit (ITC) on eligible expenses can offset the GST liability.

Bye-Law 93 requires every society to hold its Annual General Meeting (AGM) within six months of the close of each financial year. For most societies whose financial year ends March 31, the AGM must be held by September 30. The AGM must be preceded by at least 14 days' written notice to all members.

The AGM agenda must include: adoption of the audited accounts, approval of the budget for the next year, election of the managing committee (if due), and any special resolutions. The audited accounts, comprising the Income & Expenditure Account, Receipts & Payments Account and Balance Sheet, must be circulated to all members before the AGM.

Quorum for an AGM is typically one-fifth of the total membership (minimum 5 members). If quorum is not achieved, the meeting is adjourned and reconvened at the same place and time after 30 minutes, the adjourned meeting proceeds regardless of quorum. Non-compliance with AGM requirements is a serious bye-law violation.

Every housing society registered under the MCS Act must conduct a statutory audit each year through a CA empanelled with the Registrar of Co-operative Societies. The audit must cover the full financial year (April 1 to March 31) and be completed before the AGM is held.

The auditor examines all books of accounts, verifies the statutory registers, confirms bank balances against passbooks, checks whether bye-law requirements for sinking fund and repair fund have been met, and reviews the previous year's audit report to confirm whether deficiencies were rectified.

The audit report (Form J) is submitted to the Registrar of Co-operative Societies and must be presented at the AGM. Societies that receive an adverse or qualified audit report are required to place it before the general body and take corrective action within 30 days.