Proposed Changes To Maharashtra Cooperative Societies Act, 1960 Draw Mixed Reactions
Mumbai: The Maharashtra government’s draft rules for the Maharashtra Cooperative Societies Act, 1960, have received over 300 suggestions and objections.
About The Changes
The proposed Housing Chapter rules (Sections 154B to 154B-32) outline procedures and required forms for registering housing cooperatives. The registration fee has been proposed to increase from Rs 2,500 to Rs 5,000 except for societies under public housing schemes or those belonging to backward classes, where it remains Rs 50. Mandatory training is introduced for members and the managing committee members.
Members are required to attend one three-hour session, while managing committee members must attend two three-hour sessions. Societies are required to contribute Rs 10 per member monthly and Rs 1,000 per association annually to a cooperative training fund. Societies undertaking redevelopment are permitted to borrow up to 10 times the value of their land, based on a valuation report from a government-approved valuer.
Societies are required to create a reserve fund, sinking fund, maintenance fund, education and training fund, election fund, welfare fund, and corpus fund. Additionally, societies may establish a welfare fund for social, cultural, and recreational activities. The interest rate on defaulted charges is reduced from 21% simple interest per annum to 12% simple interest per annum. Online participation is now permitted in general body meetings, enhancing accessibility and engagement.
The process for selecting a developer or contractor for redevelopment requires a 14-day notice period, a quorum of two-thirds of the total members, the presence of a registrar’s representative, compulsory videography, and approval by at least 51% of the total members. Housing federations from Mumbai, Pune, Thane, Navi Mumbai, and several bar associations have raised multiple concerns regarding the draft rules. One key objection was to the proposed fee hike from Rs 2,500 to Rs 5,000, with suggestions to make the registration fee affordable for smaller societies.
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