Expert Jurist LLP

106C-10 · 106C-11

Society funds — sinking, repair & more

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Q: What is the sinking fund percentage for Maharashtra housing societies?

Minimum 0.25% per annum of each flat's construction cost, as certified by the architect at the time of construction. This is prescribed by Rule 106C-11(2) of the Maharashtra Co-operative Societies (Amendment) Rules 2026, effective 18 June 2026.

Q: What is the AGM quorum for a Maharashtra housing society?

Two-third of the total members or 20 members, whichever is less. Per Rule 106C-13(3)(e) of the Maharashtra Co-operative Societies (Amendment) Rules 2026.

Q: How does a Maharashtra housing society recover unpaid dues?

By filing Form Y-6 under section 154B-29 of the Maharashtra Co-operative Societies Act 1960, before the Joint/Deputy/Assistant Registrar of Co-operative Societies, with a court fee of ₹100. The Registrar issues a recovery certificate in Form Y-7, which is enforceable as arrears of land revenue under the Maharashtra Land Revenue Code 1966. No separate execution application is needed. Per Rule 106C-14 of the 2026 Amendment Rules.

Q: What are the registration fees for a Maharashtra housing society?

Under Rule 106C-3(2)(d) of the 2026 Amendment Rules: Tenant co-partnership up to 25 flats: ₹2,500; 26-50 flats: ₹5,000; 51-250 flats: ₹7,500; above 250 flats: ₹10,000. Backward class and Lok Awas Yojana societies: ₹50. Tenant ownership and other housing societies: ₹5,000.

Q: What is the maximum interest rate on defaulted maintenance dues?

The Maharashtra Co-operative Societies (Amendment) Rules 2026 cap interest on defaulted maintenance charges at 12% simple interest per annum (Rule 106C-12). The rate must be fixed by a general body resolution — the managing committee cannot unilaterally set a higher rate.

Rules 106C-10 and 106C-11 establish the borrowing limits and mandatory fund structure for co-operative housing societies. Nine distinct funds are prescribed — from the sinking fund at 0.25% p.a. to the welfare fund for social activities.

Backed by HPF's team of 20+ advocates·Last updated: 2 July 2026·Source: Gazette No. 366, 22 June 2026

Section 154B-15 →Section 154B-16 →

Borrowing limit (Rule 106C-10)

A housing society's total liabilities must not exceed ten times the sum of:

(a) Paid-up share capital (b) Accumulated reserve fund (c) Amount contributed by members towards land and building (d) Building fund

...minus accumulated losses.

Exception for self-redevelopment or self-development: the society may borrow up to 10 times the value of the land, as determined by a government-approved valuer's report. This allows much larger borrowing capacity for redevelopment projects.

The nine prescribed funds (Rule 106C-11)

Fund	Source	Use	Min. rate
Reserve fund	Entrance fees + transfer fees/premiums + net profit allocation + donations	General reserves	—
Sinking fund	Member contributions at rate fixed by general body	Heavy repairs approved by general body	Min. 0.25% p.a. of construction cost per flat
Repair & maintenance fund	Member contributions at rate fixed by general body	Routine recurring repairs of buildings/property	Min. 0.75% p.a. of construction cost per flat
Major repair fund	Member contributions at area-based pro-rata rate	Significant repairs and maintenance work	As decided by general body
Education & training fund	Member contributions	Co-operative education and training programmes	₹10/member/month (Rule 106C-7)
Election fund	Equal contributions from all members	Conducting managing committee elections	As decided by general body
Welfare fund	Voluntary contributions from members	Social, cultural, recreational activities	—
Corpus fund	Maintained by society	As decided by general body	—
Any other fund	Equal contributions from all members	Specific purpose approved by general body	—

Sinking fund — worked example

If a flat was constructed at ₹30,00,000:

Annual sinking fund contribution = ₹30,00,000 × 0.25% = ₹7,500 per year Monthly contribution = ₹625 per flat

This is the statutory minimum. The general body may fix a higher rate.

The construction cost used for the sinking fund must be the cost certified by the architect at the time of construction — not the current market value or sale price of the flat.

Repair & maintenance fund — worked example

If a flat was constructed at ₹30,00,000:

Annual repair & maintenance contribution = ₹30,00,000 × 0.75% = ₹22,500 per year Monthly contribution = ₹1,875 per flat

This covers routine recurring repairs — not major structural work (which comes from the major repair fund).

Reserve fund — what goes in

All entrance fees received from members — must go entirely into reserve fund.
All transfer fees, charges, or premiums received when membership is transferred.
Amounts allocated from the net profit or surplus of that year, subject to section 66(1) and (2) of the Act.
All donations received, except those designated for a specific purpose.

Frequently asked

No. The sinking fund is specifically for "heavy repairs as approved by the general body" (Rule 106C-11(2)). Routine painting and minor repairs come from the Repair & Maintenance fund.

Need help applying these rules to your society?

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This page is for informational purposes only and does not constitute legal advice. For advice specific to your situation, consult a qualified advocate familiar with Maharashtra co-operative law.

Source: Maharashtra Government Gazette, Part IV-B, No. 366, dated 22 June 2026 · Notification No. Sanini 0321/C.R.41/13-C, dated 18 June 2026

106C-7 · 106C-8 · 106C-9

106C-12

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