Understand Maharashtra housing society regulations, audits, funds, and compliance requirements
Audit & Accounts (Maharashtra Housing Society Standards)
All housing societies in Maharashtra must follow strict audit guidelines as per the MCS Act 1960 and Model Bye-Laws 2014.
Mar 31
Year-End Closing
Financial year ends on March 31. All accounts must be closed and prepared for audit.
Jul 31
Audit Completion
Audit must be completed within 4 months of year-end (Bye-law 151-153, Sec. 81).
3 Months
Rectification Period
Society must rectify audit objections within 3 months (Sec.82).
Sep 30
AGM Approval
Audit report must be placed before AGM for approval before September 30.
| Audit Requirement |
Details |
| Appointment Rules |
Auditor must be from state-approved panel |
| Term Limit |
Cannot be appointed for more than 2 consecutive years |
| Audit Forms |
Form 1 (Balance Sheet) & Form 28 (Audit Report) |
| Penalties |
Fine up to ₹25,000 for non-compliance with audit requirements |
Maintenance Billing Breakdown
Monthly maintenance charges are calculated based on various components as per Model Bye-Laws.
| Component |
Description |
Typical Rate |
| Property Tax |
As per municipal assessment |
Proportionate share |
| Water Charges |
Per flat or per member consumption |
Meter-based or fixed |
| Common Electricity |
Lift, building lights, common areas |
Proportionate share |
| Repairs Fund |
Minimum 0.75% of construction cost/year |
As per bye-laws |
| Sinking Fund |
Minimum 0.25% of construction cost/year |
As per bye-laws |
| Service Charges |
Staff salaries, security, admin expenses |
Actuals divided |
| Parking Charges |
As per society bye-laws |
Fixed monthly |
| Interest on Defaulters |
21% p.a. (as per Model Bye-Law 71) |
21% annually |
Society Funds Explained
Maharashtra housing societies must maintain specific funds as per the Model Bye-Laws 2014.
| Fund Type |
Source |
Usage |
Legal Reference |
| Reserve Fund |
Surplus, donations, entrance fees |
Major repairs and renewals (Not refundable) |
Bye-Law 12 |
| Repairs & Maintenance Fund |
Minimum 0.75% annual collection |
Daily maintenance and small repairs |
Bye-Law 14 |
| Sinking Fund |
Minimum 0.25% annual collection |
Major structural work (painting, waterproofing) |
Bye-Law 15 |
| Education & Training Fund |
₹10 per member per month |
Member education, training programs |
Bye-Law 17 |
