RIGHTS Rule 106C-13 (Maintenance and repairs)

Managing Committee Expenditure Limits Without Prior AGM Approval

Primary Statute: Maharashtra Co-operative Societies (Amendment) Rules, 2026 (Chapter XI-B)

Official Gazette: Government Notification No. Sanini 0321/ C.R. 41/ 13C dated 18 June 2026 (Gazette 22 June 2026)

Plain English Explanation

Managing committees have strict statutory spending ceilings on one-time repairs. For example, in a society with 51 to 100 members, the committee cannot spend more than ₹3,00,000 on a repair work without prior General Body sanction and competitive tenders. Billed emergency levies that exceed these ceilings without AGM approval are legally challengeable.

Statutory Calculation Formula

Spending Ceiling: Up to 25 members: ₹1L | 26-50: ₹2L | 51-100: ₹3L | 101-1000: ₹4L | 1001+: ₹5L

Any one-time repair expenditure exceeding these statutory member-tier ceilings requires prior AGM approval.

What is Legally Permitted

Incurring one-time repair expenses within the statutory member-tier limits once per financial year.

What is Prohibited by Law

Awarding high-value repair contracts or levying sudden repair surcharges without prior General Body sanction.

Official Gazette Wording & Judicial Precedents

"The managing committee shall be competent to incur expenditure on the repair and maintenance of the property of the society once in a financial year provided the one-time expenditure does not exceed: (i) up to 25 members: ₹1,00,000; (ii) 26 to 50 members: ₹2,00,000; (iii) 51 to 100 members: ₹3,00,000; (iv) 101 to 1000 members: ₹4,00,000; (v) 1001 and above members: ₹5,00,000."

Judicial Authority & Case Law:

Contracts awarded or expenditures incurred in excess of statutory limits without prior General Body approval and competitive tenders are ultra vires the Managing Committee.

What to Do if Your Bill Violates This Rule

If the committee levies a large sudden repair charge, demand inspection of the AGM resolution and competitive tender bids under Section 32.

Pre-Drafted Note for Society WhatsApp Group or Secretary:

Hi everyone, sharing an update on managing committee spending limits: Under 2026 MCS Rule 106C-13, committees have strict statutory spending ceilings on repairs (₹1L to ₹5L depending on member count). Any higher expenditure requires prior General Body approval.

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