Illegal Housing Society Practices in India | Know Your Rights Tips And Tricks

Living in a cooperative housing society comes with many benefits—shared spaces, collective decision-making, and better community living. But sometimes, societies misuse their authority and impose rules or charges that are unfair and even illegal.

If you’re a resident or planning to rent/buy in a society, it’s important to know your rights. Here are some common illegal housing society practices in India that you should watch out for.

1. Restricting Rentals Based on Religion, Caste, or Marital Status

Some housing societies try to stop tenants based on personal factors—whether someone is single, belongs to a particular religion, or comes from a specific community.

👉 This is discriminatory and unlawful. The Constitution of India and multiple court rulings make it clear that no society can deny membership or rental permissions based on caste, religion, gender, or marital status.

💡 If you’re looking to rent or buy a home, check out verified property listings on The Propertist to avoid such unfair barriers.

2. Charging Excess Non-Occupancy Charges

If you rent out your flat, societies often levy non-occupancy charges. But as per Maharashtra Government Notification, these cannot exceed 10% of service/maintenance charges.

👉 If your society is demanding more, they are violating the law.

📌Read our detailed blog to understand the tenant rights in India.

3. Demanding “Move-In” or “Move-Out” Fees

Many societies ask for one-time charges when you shift into or out of your flat. These are often disguised as “shifting charges” or “entry/exit fees.”

👉 This practice has no legal backing. Societies can charge regular maintenance, but cannot ask for arbitrary “move-in/move-out” fees.

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4. Restricting Use of Common Areas

Whether it’s the garden, terrace, clubhouse, or parking, every member (and their lawful tenants) has the right to use common facilities.

👉 Unless restricted for safety, maintenance, or lawful reasons, societies cannot deny access to these shared spaces.

5. Charging Higher Maintenance to Tenants Without Legal Basis

It’s common to see societies charging extra from tenants compared to owners under the pretext of “tenant charges.”

👉 Unless this is approved in the General Body Meeting (AGM) and recorded in the society’s bye-laws, it’s illegal. Arbitrary maintenance hikes are not permitted.

📌 If you’re a landlord, our blog on maintaining your rental property will help you balance legal compliance and tenant satisfaction.

6. Denying Essential Services

Some societies cut off water supply, lift access, or electricity for members who haven’t paid their dues.

👉 This is strictly illegal. Societies must recover pending amounts through legal means (like recovery suits), not by denying essential services.

7. Imposing Unlawful Penalties or Arbitrary Fines

If a society decides to fine you for parking in a “wrong” spot, keeping a pet, or making noise without any rule in the bye-laws, that penalty has no legal validity.

👉 Any fine or penalty must be mentioned in the bye-laws or passed officially in the AGM. Arbitrary fines are not enforceable.

Conclusion

Living in a housing society should feel like being part of a community—not a constant battle against unfair practices. Unfortunately, many societies still impose rules and charges that have no legal standing. By knowing your rights, you can challenge these actions and ensure a more transparent, fair, and harmonious living environment.

If you ever face such issues, remember:

•      ► Question unlawful charges politely but firmly

•      ► Bring matters up in the society’s AGM

•      ► Seek help from the Registrar of Cooperative Societies when required

At The Propertist, we believe that informed residents make stronger communities. Our platform not only helps you discover the right property but also keeps you updated on housing society rules, legal rights, and real estate insights.

FAQs 

1. Can a housing society refuse membership based on religion or marital status?
No. Discrimination based on caste, religion, gender, or marital status is unconstitutional and illegal.

2. What is the maximum non-occupancy charge a society can collect?
As per Maharashtra Government rules, non-occupancy charges cannot exceed 10% of service/maintenance charges.

3. Can societies cut water or electricity for unpaid dues?
No. Essential services cannot be stopped. Societies must follow legal procedures to recover dues.

4. Are one-time move-in or move-out charges valid?
No. Societies cannot impose such charges unless specifically approved under bye-laws.

5. Can societies charge tenants more maintenance than owners?
Only if it is legally approved in the AGM and reflected in the bye-laws. Otherwise, it is unlawful.