Overview Snapshot
Under Rule 106C-12 of Chapter XI-B, Maharashtra housing societies must split maintenance charges using a prescribed basis for each component, not a single formula. Service charges split equally per flat, while sinking fund and repair and maintenance fund contributions are subject to minimum percentages of each flat’s certified construction cost. Insurance and major repair charges follow carpet-area-based apportionment.
- No single formula, equal split or per square foot, applies to an entire maintenance bill
- Service charges, including staff salaries, security, administrative and other prescribed service costs, are split equally by number of flats, regardless of flat size
- Sinking Fund and Repair and Maintenance Fund contributions are subject to minimum percentages of each flat’s architect-certified construction cost
- Water charges follow the number and size of inlets or taps per the sanctioned building plan, not flat size directly
- Non-occupancy charges are 10% of the service charges component specifically, not 10% of the total maintenance bill
The Bill That Never Quite Adds Up the Way People Expect
A resident in a 450 square foot flat and a resident in a 1200 square foot flat compare maintenance bills one evening, the way neighbours do. The lift charge is identical. The sinking fund contribution is not necessarily identical, because it is based on the construction cost of each flat or unit. One of them assumes the society made an error. Neither necessarily did. That’s the maintenance bill working according to the different apportionment bases prescribed under Rule 106C-12, and it’s also exactly the kind of detail that turns into a WhatsApp group argument if nobody on the committee can explain why.
Chapter XI-B, introduced through the Maharashtra Co-operative Societies (Amendment) Rules, 2026, includes Rule 106C-12, which sets out the charges that a housing society may levy and the prescribed basis for apportioning different charge heads among members or unit holders. The amendment was notified by the Government of Maharashtra on 18 June 2026 and published in the Maharashtra Government Gazette, Part IV-B, No. 366, dated 22 June 2026.This piece walks through the prescribed basis for each charge head, where societies commonly get it wrong, and what it actually looks like on a real bill across different flat sizes.
What Does Chapter XI-B Actually Say About Maintenance Charge Apportionment?
Rule 106C-12 sets out the charges that a society may levy from members or unit holders, including service charges, property tax, water charges, lift expenses, parking charges, interest on defaulted charges, loan repayments, non-occupancy charges, insurance, lease rent, contributions to various funds, and other charges approved by the general body subject to the Act and Rules.
The Rule then sets out the basis on which the committee is to apportion the share of each member, unit or flat holder towards these charges.
What “Apportionment” Actually Means Here
Apportionment is simply the method used to divide a shared cost among flats. The important change for societies is that the new Rule 106C-12 provides specific statutory bases for individual charge heads instead of treating the entire maintenance bill as one amount to be divided using a single formula.
That distinction matters. A society cannot assume that because one component is divided equally, every other component must be divided the same way. Each charge needs to be matched to the basis prescribed for that particular head.
Why One Formula Can’t Cover the Whole Bill
The instinct to bill everything per square foot, or everything equally per flat, is understandable. It’s simpler to calculate and explain. It’s also not how Rule 106C-12 structures the different charge heads.
Some costs genuinely don’t scale with flat size. Service charges, for example, are divided equally by the number of units or flats. Lift expenses are similarly divided equally among the flats in the building where the lift is provided.
Other charges use a different basis. Insurance and major repair fund contributions are linked to carpet area, while sinking and repair and maintenance fund contributions are subject to minimum percentages based on the construction cost of each flat or unit.
The result is a bill where different lines can legitimately produce different amounts for different flats.
The Apportionment Basis, Head by Head
Here’s the breakdown under Rule 106C-12.
| Charge | Apportionment Basis |
| Service charges | Equally by number of units or flats |
| Property tax | As fixed by the local authority; common-area portion based on carpet area |
| Water charges | By the total number and size of inlets or taps in each flat, as per the sanctioned building plan |
| Lift maintenance and running | Equally among flats in the building where the lift is provided |
| Car parking | At the rate fixed by the general body |
| Interest on defaulted charges | Rate fixed by the general body, not exceeding 12% simple interest per annum |
| Loan repayment and interest | According to the instalment and interest fixed by the financial agency |
| Non-occupancy charges | 10% of service charges |
| Insurance charges | By carpet area of each flat, subject to the applicable proviso for additional premium attributable to specific goods stored or commercial use |
| Lease rent | By carpet area of each unit or flat |
| Sinking Fund | Rate fixed by the general body, subject to a minimum of 0.25% per annum of the construction cost of each flat or unit, incurred during construction and certified by the Architect |
| Repair and Maintenance Fund | Rate fixed by the general body, subject to a minimum of 0.75% per annum of the construction cost of each flat or unit, incurred during construction and certified by the Architect |
| Major Repair Fund | By carpet area of each flat or unit |
| Education and Training Fund | ₹10 per member per month, or the government-fixed rate if higher |
Charges Split Equally, Regardless of Size
Service charges are the biggest category to understand because they include prescribed operating and administrative expenses such as staff salaries, security-related personnel and other service costs covered within the definition of service charges.
These charges are divided equally by the number of flats or units. A 450 square foot flat and a 1200 square foot flat therefore carry the same share of the service-charge component.
Lift expenses follow the same principle, but with an important geographic limitation. The cost is divided equally among the flats in the building where the lift is provided. A society with multiple buildings therefore needs to apply the rule building by building rather than automatically spreading one lift’s expenses across every unit in the society.
Charges That Scale With Construction Cost or Area
Sinking Fund and Repair and Maintenance Fund contributions work differently.
The Sinking Fund contribution is fixed by the general body subject to a minimum of 0.25% per annum of the construction cost of each flat or unit. The Repair and Maintenance Fund has a corresponding minimum of 0.75% per annum of the construction cost of each flat or unit.
The relevant figure is therefore the construction cost of the individual flat or unit, rather than simply its carpet area or a round figure chosen for convenience.
Insurance and the Major Repair Fund use carpet-area-based apportionment. That means a larger flat can legitimately carry a larger share of these particular components.
The key point is simple: flat size does not determine every component of a maintenance bill in the same way.
Charges Based on Usage or Individual Status
Parking is charged at the rate fixed by the general body.
Non-occupancy charges are fixed at 10% of the service charges component. That is important because the base is specifically the service-charge amount, not the total maintenance bill.
Interest on defaulted charges is fixed at the rate decided by the general body, subject to a maximum of 12% simple interest per annum.
The distinction between these bases matters because applying the wrong percentage to the wrong component can materially change the amount demanded from a member.
What Common Mistakes Do Societies Make With Apportionment?
The most frequent error is defaulting to one formula across the whole bill for the sake of simplicity, usually per square foot, because it feels intuitively fair or because an older billing practice treated “maintenance” as one broad category.
That approach becomes problematic wherever Rule 106C-12 specifies a different basis, most notably service charges and lift expenses.
A second common error involves non-occupancy charges being calculated as 10% of the entire maintenance bill rather than 10% of the service-charge component.
A third involves applying the 0.25% or 0.75% fund minimums to an arbitrary maintenance figure instead of working from the construction cost of each flat or unit.
Another is continuing to apply an interest rate above the statutory 12% simple-interest ceiling because an older billing template or historical practice was never reviewed.
A Worked Example: Four Flat Sizes, One Society
Take a hypothetical 40-flat society with a monthly service charge pool of ₹2,00,000.
Because service charges are divided equally:
₹2,00,000 ÷ 40 flats = ₹5,000 per flat per month
Now consider four flats of different sizes:
| Flat | Size | Monthly Service Charge | Sinking Fund Basis | Non-Occupancy Charge, If Applicable |
| 1 BHK | 450 sq ft | ₹5,000 | Based on that flat’s certified construction cost | ₹500 |
| 2 BHK | 750 sq ft | ₹5,000 | Based on that flat’s certified construction cost | ₹500 |
| 3 BHK | 1,000 sq ft | ₹5,000 | Based on that flat’s certified construction cost | ₹500 |
| 4 BHK | 1,200 sq ft | ₹5,000 | Based on that flat’s certified construction cost | ₹500 |
The service charge stays identical across all four flats because that component is divided equally.
The sinking fund does not necessarily stay identical because its statutory minimum is linked to the construction cost of each flat or unit.
The non-occupancy charge, where applicable, is also identical in this simplified example because it is calculated as 10% of the service-charge component.
That’s the entire logic of the rule in one table: different charge heads can legitimately use different apportionment bases.
What If a Society’s Bye-Laws Don’t Specify a Basis, or Specify a Different One?
This is where societies need to be careful.
Rule 106C-12 now provides the statutory basis for the specified charge heads. At the same time, housing-society governance continues to operate alongside the society’s registered bye-laws and the wider provisions of the Maharashtra Co-operative Societies Act and Rules.
So a society should not simply assume that an older billing formula continues to apply where it conflicts with a mandatory statutory apportionment basis.
The practical approach is to map the society’s existing billing heads against Rule 106C-12 and its registered bye-laws, identify any conflict or gap, and update the billing process accordingly rather than continuing an inherited formula simply because it has always been used.
Where This Actually Bites a Committee
A society’s accounts have historically billed both lift maintenance and the repair fund using the same per square foot formula, for convenience, because an old billing template treated “maintenance charges” as one broad category.
A resident in a smaller flat compares notes with a friend elsewhere and notices their lift charge is lower than what larger flats in the same building are paying.
The complaint that follows isn’t really about the money. It’s about whether the committee understands the rule it’s supposed to be applying.
A professionally managed society avoids this by building each component’s calculation against its own prescribed basis from day one, service charges equal, sinking fund against certified construction cost, lift charges scoped to the right building, and insurance and other applicable components calculated on their prescribed bases.
The point isn’t to make the bill complicated. It’s to stop one convenient formula from quietly being applied to every line.
Manual Apportionment vs Professional Management
| Aspect | Manual, Single-Formula Billing | Professional, Component-Based Billing |
| Service charges | Often billed using a blanket formula for simplicity | Billed equally per flat, as prescribed |
| Sinking and repair funds | Estimated as a round number | Calculated against the applicable construction-cost basis |
| Lift charges | Sometimes billed society-wide | Billed to flats in the building where the lift is provided |
| Non-occupancy charges | Sometimes applied to the total bill | Calculated at 10% of service charges |
| Interest on arrears | May continue from an outdated billing template | Checked against the general-body-approved rate and 12% ceiling |
| Resident trust | Erodes when someone spots an inconsistency | Builds because each line item has a documented basis |
A Practical Checklist for Reviewing Your Society’s Current Bill
- List every line item on the current maintenance bill and match each to its charge head under Rule 106C-12.
- Confirm each line’s apportionment basis against the prescribed rule, rather than applying a single blanket formula.
- Recalculate Sinking Fund and Repair and Maintenance Fund contributions against the applicable architect-certified construction cost of each flat or unit.
- Confirm lift maintenance billing is scoped only to flats in the building actually served by that lift.
- Check that non-occupancy charges are calculated at 10% of the service-charge component, not 10% of the total bill.
- Confirm any interest charged on arrears sits at or below the 12% simple-interest ceiling and that the applicable rate has been fixed by the general body.
- Review the society’s registered bye-laws and billing templates alongside Rule 106C-12 and address any inconsistency rather than continuing an inherited formula automatically.
Getting This Right, Every Month, Not Just at Audit Time
The difficult part of Rule 106C-12 is not understanding each rule. It is recognising that a society’s maintenance bill involves different components that may have different statutory bases. Applying one convenient formula across the entire bill is the kind of shortcut that creates problems later.
This is a governance issue, not just a billing issue. A society should be able to understand why each charge is apportioned the way it is, what rule supports it, and whether the same basis is being applied consistently.
At Tick Boxes, we believe the committee should not have to become its accountant or compliance officer. The committee should govern, review and make decisions, while a professional team owns the financial execution. Our accounting and audit expertise ensures that billing is handled against the correct statutory basis, calculations remain traceable, and inconsistencies are identified before they become disputes or audit observations.
Technology supports this with accurate, auditable billing records. But good financial governance comes from professionals applying the rules correctly and consistently every month.
If your society has not reviewed its maintenance billing methodology against Rule 106C-12 since Chapter XI-B took effect, the question is not simply whether the bills went out. It is whether the basis behind them can withstand scrutiny.
Your committee governs. We manage the financial execution.
Frequently Asked Questions
1. Can maintenance be charged only per flat regardless of size?
Only for specific components. Service charges are divided equally per flat under Rule 106C-12, but Sinking Fund and Repair and Maintenance Fund contributions are subject to minimum percentages based on the applicable certified construction cost of each flat or unit, while insurance and the Major Repair Fund use carpet-area-based apportionment. A society’s full maintenance bill therefore does not use one formula across every line.
2. Can maintenance be charged only per flat regardless of size?
Only for specific components. Service charges are divided equally per flat under Rule 106C-12(4), but Sinking Fund and Repair and Maintenance Fund contributions are subject to minimum percentages based on construction cost, while insurance and the Major Repair Fund use carpet-area-based apportionment. A society’s full maintenance bill therefore does not use one flat-rate formula across every line.
3. What if a society’s bye-laws don’t specify an apportionment basis, or specify something different?
Rule 106C-12 provides the statutory apportionment basis for the specified charge heads. A society should therefore review its registered bye-laws and existing billing practice against the Rule rather than assuming that an older formula automatically continues where it conflicts with the statutory requirement.
4. Can a society charge more than 12% interest on overdue maintenance?
Rule 106C-12 provides that interest on defaulted charges is fixed by the general body and cannot exceed 12% simple interest per annum.
5. When can a society charge non-occupancy charges?
The Rule prescribes non-occupancy charges at 10% of service charges. The society should apply the charge in accordance with the applicable statutory framework and its registered bye-laws when determining whether a particular unit attracts non-occupancy charges.
Sources & Citation:
- Maharashtra Co-operative Societies (Amendment) Rules, 2026, Notification No. Sanini 0321/C.R.41/13-C, dated 18 June 2026, Co-operation, Marketing and Textiles Department, Government of Maharashtra, Rule 106C-12, published in the Maharashtra Government Gazette, Part IV-B, No. 366, dated 22 June 2026.
- https://wirc-icai.org/html/Newsletter/member/July-2026/co-operative-housing-societies.html
- https://taxguru.in/corporate-law/maharashtra-co-operative-societies-amendment-rules-2026.html
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