Maharashtra’s proposed housing society rules seek to end maintenance disputes, bring uniformity in charges

Mumbai: Maharashtra’s proposed new co-operative housing society rules could finally settle one of the most contentious issues faced by lakhs of flat owners — how maintenance charges should be calculated and recovered.Ramesh Prabhu, an expert on cooperative societies, said one of the biggest challenges faced by housing societies is ensuring a regular flow of funds. “Service charges are contributed by members based on actual expenditure reflected in society accounts. However, because flats vary in size and members have different economic backgrounds, disputes frequently arise between societies and residents over the basis on which maintenance and service charges should be levied,” he said.For instance, the owner of a 500-sq-ft flat and the owner of a 1,500-sq-ft flat would pay the same amount towards service charges because both receive the same administrative and common services from the society.Prabhu noted that while similar provisions already existed in the Model Bye-laws, many societies either failed to adopt them or implemented them incorrectly, resulting in repeated disputes, arbitrary billing practices and avoidable litigation.

The charges to be shared equally would include service charges, staff salaries, audit fees, legal expenses, administrative and stationery expenses, common electricity charges, meeting expenses, membership subscriptions, education fund, election fund, garden and amenity maintenance, lift charges.Charges to be linked to flat size would include insurance charges, lease rent, major repair fund, sinking fund and non-agricultural tax.Caps would be placed on non-occupancy charges and delayed payment interest. The proposed framework also seeks to curb another common source of disputes — non-occupancy charges levied on flats that are given on rent or leave-and-licence. Under the new rules, such charges will be capped at 10% of service charges.Societies will be permitted to levy interest only on maintenance defaulters, with the proposed ceiling fixed at 12% simple interest per annum. Experts say the cap is aimed at preventing excessive penal charges while ensuring that societies retain the ability to recover legitimate dues.Water charges may be recovered based on the number of water inlets, or size of the water connection.Parking charges, meanwhile, would continue to be determined through resolutions passed by the society’s general body.