---

1. PUBLICATION OF FINAL MCS (AMENDMENT ) RULES 2026.

The Maharashtra Co-operative Societies (Amendment) Rules, 2026 is notified on 18th June 2026. It has now operationalized material parts of that code by inserting Chapter XI-B - Rules 106C-1 to 106C-14 - in the Maharashtra Co-operative Societies Rules, 1961.

2. TABLE WITH AMENDED RULES AND THE CORRESPONDING SECTIONS:

The following table lists every special Rule inserted in Chapter XI-B, the principal enabling section in Chapter XIII-B of the MCS Act 1960, and the matter prescribed by the Rule. Additional sections are shown where the Rule also gives procedural effect to related rights or duties.

Rule	Applicable section(s)	Prescribed subject	Core prescription	Form / control
106C-1	154B	Non-application of specified Rules	Excludes Rules 4, 19, 20(1), 22, 25, 27, 30A, 35-48, 49B, 49C, 53, 53C, 63A, 66, 86A and 93-103 from housing societies.	Applicability matrix
106C-2	154B-2 and 154B-3(1)-(2)	Name reservation and bank account	Form Y-1 for proposed housing society; Form Y-2 for Association/Co-operative Housing Association; promoter resolutions, architect documents, Form Y-3 register; disposal within 30 days.	Y-1, Y-2, Y-3; 30 days
106C-3	154B-2 and 154B-3(3)	Registration application and fees	Application within two months; proposed bye-laws, contributor list, bank certificate, viability scheme and prescribed registration fee.	Y-1 reference; 2 months
106C-4	154B-4, 154B-5, 154B-7 and 154B-12	Admission to membership	Application under bye-laws, at least five shares, entrance fee, registered instrument and committee approval; authorising resolution for legal entities.	Membership file
106C-5	154B-1(18)(a), 154B-4, 154B-10 and 154B-11	Associate membership	Eligible person applies with original member recommendation; specifies cessation events.	Y-5A
106C-6	154B-1(18)(c) and 154B-13	Provisional member and family arrangement	Nominee/legal-heir procedure, indemnity, public notice, succession evidence and registered family arrangement.	Y-4, Y-5
106C-7	154B-6; partly 154B-28	Education and training	Annual programmes, contribution rates, minimum sessions and eligibility of notified training institutions.	Rs.10/member/month; Rs.1,000/year
106C-8	154B-13	Nomination	Nomination by member/joint member; separate nomination for respective joint share; revocation/variation by fresh form.	Bye-law nomination form
106C-9	154B-13	Nomination register	Entry of nominee, address and every revocation/variation in register under Rule 32.	Register control
106C-10	154B(1) read with section 43	Borrowing limit	Ordinary liability ceiling of ten times specified owned funds; self-redevelopment borrowing up to ten times land value supported by Government-approved valuer.	Valuation and borrowing base
106C-11	154B-15 and 154B-18	Creation and use of funds	Reserve, sinking, repair and maintenance, major repair, education, election, welfare, corpus and other specific-purpose funds.	Separate ledgers/resolutions
106C-12	154B-16; linked to 154B-15 and 154B-29	Levy and apportionment	Permissible charge heads, contents of service charges, and mandatory apportionment basis including 12% simple interest cap and 10% non-occupancy charge.	Billing matrix
106C-13	154B-25; linked to 154B-19, 154B-27, 75, 76 and 79A	Management and meetings	Model bye-laws, committee duties, hybrid meetings, quorum, voting, redevelopment process, casual vacancies and repair expenditure limits.	Notices, minutes, video record
106C-14	154B-29; linked to 154 and 156	Recovery certificate	Form, fee, documents, scrutiny, notice, hearing, evidence, reasoned order and certificate; execution aligned through Rules 85 and 107.	Y-6, Y-7; Rs.100

3. DETAILED RULE-WISE ANALYSIS

3.1 Rule 106C-1 - Non-application of specified Rules

Applicable section: section 154B.

Rule 106C-1 establishes a separate procedural code by excluding Rules 4, 19, Rule 20(1), Rules 22, 25, 27, 30A, Rules 35 to 48, Rules 49B, 49C, 53, 53C, 63A, 66, 86A and Rules 93 to 103 from application to housing societies.

The Rule must be applied along with section 154B(1) and (2). It is not enough to look only at Rule 106C-1 because the Act separately imports or excludes substantive provisions.

3.2 Rule 106C-2 - Name reservation and permission to open a bank account

Applicable sections: 154B-2 and 154B-3(1) and (2).

A proposed housing society applies in Form Y-1 with the promoters’ resolution and minutes electing and authorising the Chief Promoter. A tenant co-partnership housing society or premises society must support the proposal with an architect-certified commencement certificate or building completion certificate. A tenant ownership society must furnish an architect-certified tentative layout or sanctioned layout.

A proposed Association of Societies or Co-operative Housing Association applies in Form Y-2. It requires at least two authorised office bearers of each society or legal body to sign, resolutions from the minimum statutory number of constituents, registration certificates and an architect’s certificate confirming that the constituents form part of the same layout or plot.

The Registrar records the application in Form Y-3, may permit amendment before approval, and must dispose of the application within thirty days by a reasoned communication. Filing may be by registered post, hand delivery or electronic mode.

3.3 Rule 106C-3 - Registration application and registration fees

Applicable sections: 154B-2 and 154B-3(3).

The registration application must be filed within two months from permission for name reservation and bank account. It is signed by the Chief Promoter and accompanied by two copies of proposed bye-laws, the contributor/share capital list, entrance-fee details, bank balance certificate, and an economically sound scheme describing proposed immovable property and its acquisition or transfer.

Registration fees prescribed are: tenant ownership society - Rs.5,000; tenant co-partnership society - Rs.2,500 up to 25 units, Rs.5,000 for 26-50, Rs.7,500 for 51-250 and Rs.10,000 above 250; other housing society - Rs.5,000; backward-class housing society - Rs.50; Lok Awas Yojana housing society - Rs.50; Co-operative Housing Association - Rs.5,000; Association of Societies - Rs.5,000.

The viability scheme deserves professional attention. It should cover recurring outgoings, service-charge assumptions, common facilities, insurance, fund requirements, collection risk and maintenance obligations.

3.4 Rule 106C-4 - Conditions for regular membership

Applicable sections: 154B-4, 154B-5, 154B-7 and 154B-12.

Except for associate and provisional membership, the applicant must apply under the registered bye-laws, subscribe the value of at least five shares, pay the entrance fee, submit a certified copy of a duly stamped and registered agreement, registered gift deed or similar legal instrument, and obtain committee approval.

Where the applicant is a Government, HUF, company, firm, LLP, local authority, association, co-operative society, trust or other legal body within section 154B-1(20)(ii) to (xii), a resolution authorising the application must accompany the membership application.

The membership file should evidence title, eligibility, payment, committee resolution, member-register entry and share certificate. Section 154B-5 also caps membership by the number of flats or plots, subject to its statutory proviso.

3.5 Rule 106C-5 - Associate membership

Applicable sections: 154B-1(18)(a), 154B-4, 154B-10(6)-(7) and 154B-11(2).

An eligible person applies in Form Y-5A with the recommendation of the original member. Associate membership ceases on the death of the original member, cancellation requested by that member, resignation of the associate member or death of the associate member.

Voting and contesting election are not automatic merely because Form Y-5A exists. The Act requires prior written consent of the original member for the relevant right. The recommendation, consent and committee admission should therefore be separately documented.

3.6 Rule 106C-6 - Provisional membership and transfer through family arrangement

Applicable sections: 154B-1(18)(c) and 154B-13.

After the death of a member or joint member, a nominee may apply in Form Y-4 with an indemnity bond. Multiple nominees file a single application. If there is no nomination or no nominee comes forward, the society must invite legal-heir claims by notice in at least two widely circulated local daily newspapers and on the society notice board.

Where there are several claimants, they may identify the provisional member by affidavit. If they do not agree, the committee calls for a legal heirship certificate, succession certificate or letters of administration. A provisional member receives no right, title or ownership and is not entered in the share certificate; the provisional status ends when the lawful heirs are entered.

Legal heirs may also execute a duly registered family arrangement and apply in Form Y-5 with an indemnity bond. The committee publishes a public notice and, if no objection is received, transfers the interest according to the registered arrangement. If there is an objection or dispute, succession evidence from a competent court is required.

3.7 Rule 106C-7 - Co-operative education and training

Applicable section: 154B-6; also relevant to section 154B-28.

Every housing society, Association of Societies and Co-operative Housing Association must organise annual programmes through a State Federal Society or State Apex Training Institute notified by the State Government.

A housing society contributes Rs.10 per member per month. An Association of Societies or Co-operative Housing Association contributes Rs.1,000 annually. Contributions are collected annually and used in the same or following financial year for training.

As far as possible, members should receive at least one annual three-hour session. Committee members, office bearers and employees should receive at least two annual three-hour sessions. The notified institution must satisfy registration, statewide area, bye-law, infrastructure, staff and experience conditions.

3.8 Rules 106C-8 and 106C-9 - Nomination and register

Applicable section: 154B-13.

A member or joint member may nominate one or more persons for provisional membership by the nomination form under the registered bye-laws. The form must be signed and delivered during the member’s lifetime. Each joint member files a separate nomination for that member’s respective share.

A fresh nomination may revoke or vary an earlier nomination. The name and address of every nominee and each revocation or variation must be entered in the register maintained under Rule 32.

3.9 Rule 106C-10 - Borrowing limits

Applicable provision: section 154B(1) read with section 43 of the Act.

Ordinarily, liabilities of a housing society cannot exceed ten times the total of paid-up share capital, accumulated reserve fund, members’ contributions towards land and building and the building fund, reduced by accumulated losses.

For self-redevelopment or self-development, borrowing may extend up to ten times the land value stated in a report from a Government-approved valuer.

3.10 Rule 106C-11 - Creation and maintenance of funds

Applicable sections: 154B-15 and 154B-18; section 66 is relevant for reserve-fund allocation.

The Rule creates a structured fund architecture. Reserve fund comprises entrance fees, transfer fees/charges/premium, allocation from annual surplus or net profit under section 66, and donations not earmarked for a specific purpose.

Sinking fund is funded at not less than 0.25% per annum of the architect-certified original construction cost of each flat and is used for heavy repairs approved by the general body. Repair and maintenance fund is funded at not less than 0.75% per annum of such certified construction cost and meets routine recurring repairs.

Major repair fund is collected pro rata on area basis as required and approved by the general body. Election fund is collected equally. Welfare fund is voluntary. Education and training fund, corpus fund and other specific-purpose funds are also recognised.

3.11 Rule 106C-12 - Levy and apportionment of charges

Applicable sections: 154B-16, read with 154B-15, 154B-1(11)-(12) and 154B-29.

The Rule identifies permissible charge heads: service charges, property tax, water, lift expenditure, parking, interest on defaults, loan instalments and interest, non-occupancy, insurance, lease rent, non-agricultural tax, fund contributions and other general-body-approved charges not inconsistent with the Act or Rules.

Service charges include staff salaries, society-office outgoings, printing/postage, travel and conveyance, committee sitting fees, federation subscriptions/entrance fees, internal/statutory/re-audit/test-audit fees, meeting expenses, legal/retainer/territorial-enquiry fees and common electricity.

Apportionment is mandatory: service charges equally by units/flats; property tax as fixed by the local authority and common area by carpet area; water by number/size of inlets or taps in the sanctioned plan; lift expenses equally among units/flats in the building having the lift; parking at general body rate; default interest at general body rate not exceeding 12% simple interest per annum; non-occupancy at 10% of service charges; insurance and lease rent by carpet area; major repairs by carpet area; election and other funds equally; welfare fund voluntarily.

3.12 Rule 106C-13 - Management, meetings, redevelopment and repairs

Applicable section: 154B-25; related sections include 154B-19, 154B-27, 75, 76 and 79A.

Management is governed by Registrar-approved bye-laws. The Registrar is to issue model bye-laws, and a society, Association of Societies or Co-operative Housing Association may adopt them within three months of publication.

The committee must implement general body decisions, prepare the budget, maintain financial records, ensure timely audit and maintenance, and may appoint architects, contractors and other professionals with general body approval.

The general body is declared the supreme decision-making authority within the Act, Rules, bye-laws and binding directions. Participation may be physical or through a system capable of identifying participants and retaining date/time-stamped proceedings.

Ordinary AGM/SGM quorum is two-thirds of total members or twenty, whichever is less. Rules for dissolution/adjournment in absence of quorum are prescribed. A special general body meeting under section 76 may be called with five clear days’ notice.

Redevelopment requires fourteen clear days’ notice, quorum of two-thirds of total membership, presence of the Registrar’s representative, and video recording. Selection of developer or contractor requires 51% of total members, including video participants, and the Registrar’s representative submits a factual report.

Casual vacancies may be filled after seven-day nomination notice. Repair and maintenance expenditure authority is capped at Rs.1 lakh (up to 25 members), Rs.2 lakh (26-50), Rs.3 lakh (51-100), Rs.4 lakh (101-1,000) and Rs.5 lakh (1,001 and above).

3.13 Rule 106C-14 - Recovery certificate

Applicable section: 154B-29; revision under section 154; execution under section 156 and Rules 85/107.

A housing society applies in Form Y-6 with a court fee of Rs.100. The application states the amount and whether the respondent is a member. It is supported by authority to represent, an up-to-date certified ledger, resolutions approving charges/major repairs/construction cost and simple interest, fee proof and demand notice.

The Registrar scrutinises completeness, may allow seven days to cure defects, and after registration issues notice within fifteen days. Service may be by hand, registered post acknowledgment due or newspaper publication. The Code of Civil Procedure applies mutatis mutandis to public notice.

The Rule prescribes written statement, limited initial adjournment, ex parte procedure, document production and inspection, adverse inference, oral arguments, reasoned judgment and issue of Form Y-7 certificate.