Housing Society – News & Updates
Maharashtra Govt to allow conversion of leasehold land to freehold at 25% above the ready-reckoner rate
Freehold means the individual, cooperative housing society, or industry becomes the owner after paying a percentage of the Ready Reckoner (RR) rate as premium to the government.
The Maharashtra government issued a final notification allowing the conversion of leasehold lands and occupancy class II land to freehold status upon payment of premium of up to 25 per cent of the Annual Statement Rates (ASR) or Ready Reckoner rates of the land area.
The gazette notification, released by the revenue department on March 4, outlines revised premium rates applicable until December 31, 2025.
As per the new rates, individual or private landholders and companies holding Class II land for residential purposes will need to pay a premium of 15 per cent of the ASR.
While occupancy Class II lands are those where the ownership comes with restrictions, leasehold lands are government owned and leased to private persons, cooperative housing societies or industries.
Updated: March 6, 2025
Bombay HC rejects housing society’s bid to restrict membership transfers
Bombay High Court rules that society bylaws cannot override Maharashtra Co-op Societies Act, reinforcing rights of homebuyers
A single bench of the Bombay High Court recently set aside a petition filed by a housing society seeking restriction of transfer of membership. The HC order gives a new dimension to over 1.2 lakh housing societies in the state, which otherwise believed that the decision of the managing committee and general body is binding on its members. However, the HC stated that Society can’t impose any restrictions on the transfer of Membership overriding the provisions of Maharashtra Co-op. Societies (MCS) Act, MCS Rules and Bylaws, thereunder.
The case concerns Kendriya Vihar Co-operative Housing Society Ltd., a large co-operative housing society in Pune with 307 flats, versus the Divisional Joint Registrar and others. The petitioner society had imposed restrictions on admitting non-government employees as members. In its general body meeting, it resolved that flat transfers through sale-purchase could only involve government employees. If a transfer was made to a non-government employee, their membership application would be rejected.
Common violations by the General Body in housing societies
>> Redevelopment: Many General Bodies appoint developers for redevelopment without transparency, fairness, or due process, ignoring members’ rights.
>> Transfer of membership: Some societies impose restrictions on membership transfers, limiting them to specific communities or professions, charging excessive transfer premiums, or demanding donations.
>> Non-occupation charges: Certain societies unlawfully levy non-occupation charges beyond prescribed limits on flats given on leave and license.
>> Restrictions on Bachelors: Many societies prohibit bachelors from renting flats, restricting subletting and rental rights.
What Act, rules and bylaws state
> Any individual or a legal entity or a firm who is competent to contract under the Indian Contract Act, 1872, is entitled to become a member of any Cooperative Housing Society.
>> No Society shall, without sufficient cause, refuse admission to membership to any person duly qualified under the provisions of this Act and its Bylaws.
>> There is only one provision under Section 154 B-7 of the said Act, which restricts the transfer of share or interest of a member if the dues of the housing society are not paid or if the transferee has not applied and acquired membership of the cooperative housing society in due course of time.
Updated on: 05 March,2025