Maharashtra Housing Law Under Fire: Citizens Demand Transparency In Redevelopment Deals

Section 154B-8 of MCS Act seen as shield for builder lobbies, leaving housing society members powerless

For millions of residents across Maharashtra’s rapidly urbanising cities, housing co-operative societies represent not just homes, but a shared dream of community-led development. Yet, a growing chorus of voices warns that this dream is at risk. At the heart of the controversy is Section 154B-8 of the Maharashtra Co-operative Societies (MCS) Act, a provision meant to regulate access to society documents—but increasingly accused of enabling secrecy and exploitation.

Housing societies, especially in Mumbai, Pune, Thane and other urban hubs, have become the gateway to multi-crore redevelopment projects. With land scarce and population booming, redevelopment offers a lifeline—promising modern buildings, better amenities and value appreciation. However, as these projects scale from ₹80 crore to ₹200 crore and beyond, questions about who benefits and who is kept in the dark have become more urgent.

Section 154B-8, introduced in the post-2019 legal reforms, ostensibly empowers members to inspect key records: the bye-laws, audited accounts, committee member lists, and minutes of meetings. Copies of these can be obtained for a nominal fee. Yet critics argue the law’s tight restrictions on which documents can be seen—and which are kept hidden—have undermined transparency.

“Why should any document of a housing co-operative, formed for public housing and not commercial gain, be kept secret from its own members?” asks Satyanarayan Gaur, an activist and long-time housing rights advocate. Gaur, who recently wrote to the government, points out that while the law permits access to a handful of records, it blocks scrutiny of crucial redevelopment agreements, builder contracts, and tender documents.

This, he says, has led to a situation where builder lobbies and some managing committees allegedly collude to siphon off benefits meant for all members. Honest and aware residents find themselves helpless, unable to challenge decisions without the full facts. “It’s like watching a loot silently, unable to speak or act,” Gaur laments.

In redevelopment deals, where hundreds of crores are at stake, opacity breeds corruption, delays, and legal battles. Numerous complaints have flooded the offices of the Registrar of Co-operative Societies, many citing irregularities that could have been prevented if members had access to complete records.

So what is the solution? Housing activists, legal experts and citizen groups are united in calling for amendments to Section 154B-8 and related rules. Their demand: allow members to inspect and obtain copies of all documents related to society dealings, especially those involving redevelopment. They propose these should be provided at the actual cost of photocopying (Rs 2-3 per page), with no hidden charges or arbitrary restrictions.

Such transparency, they argue, would not only protect members’ rights but also reduce unnecessary complaints, freeing up government officials to focus on broader welfare tasks.

As the debate intensifies, several critical questions emerge:

• Why is there resistance to sharing redevelopment documents with the very members who own the society?
• Will the government move to amend the law or issue a new GR to mandate greater transparency?
• How can housing co-operatives balance efficient redevelopment with fair, accountable governance?

For now, thousands of housing society members wait, hopeful that their call for openness will not be drowned out by the din of vested interests.