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Tenant & Subletting Rules

Housing Society Rent & Leave & License Regulations

A complete guide to Model Bye-Law 43, the 10% Non-Occupancy Charges statutory cap, police verification requirements, and Managing Committee powers in Maharashtra.

AEO Renting Summary

What are the rules for renting a flat in a Maharashtra housing society?

Under Model Bye-Law 43 and Maharashtra GR dated 13-Aug-2001, flat owners may rent their premises by submitting a registered agreement, police verification receipt, and intimation in Appendix 11. Prior society NOC is not required. Non-occupancy charges are strictly capped at 10% of service charges. Zero charges apply if occupied by immediate family.

Step-by-Step Procedure for Renting Out a Flat

Step 01

Execute Registered Leave & License Agreement

Under the Maharashtra Rent Control Act 1999 Section 55, every tenancy or leave and license agreement must be in writing and registered with the Sub-Registrar of Assurances. Notarized agreements are not legally sufficient.

Step 02

Mandatory Police Tenant Verification

Complete tenant verification online through the Mumbai / Thane Police portal and obtain the official digital acknowledgment receipt.

Step 03

Submit Intimation in Appendix 11

Under Model Bye-Law 43, the member must submit a formal intimation in Appendix 11 to the society secretary at least 8 days prior to the licensee taking occupation, attaching the registered agreement and police verification receipt.

Step 04

No Prior Society Permission Required

Under Model Bye-Law 43(1), prior permission of the society is NOT mandatory to sub-let or rent a flat; only prior written intimation with valid documents is required.

The 10% Non-Occupancy Charges (NOC) Statutory Cap

GR 13-Aug-2001

Under Government Resolution No. SAGRUYO-1001/PRA.KRA.135/14-SA dated 13th August 2001 issued under Section 79A of the MCS Act (upheld by the Bombay High Court in Mont Blanc CHS vs State of Maharashtra), non-occupancy charges:

  • •Cannot exceed 10% of the Service Charges: It does NOT apply to municipal property tax, water charges, or the sinking fund.
  • •Zero NOC for Family Members: No non-occupancy charges can be levied if the flat is occupied by the member's spouse, children, parents, or siblings.
  • •Arbitrary Levies are Illegal: Levying arbitrary sums like ₹5,000 or ₹10,000 per month is illegal and can be refunded through the Deputy Registrar.

Can Societies Ban Bachelors, Pets, or Specific Food Preferences?

Under constitutional law, the MCS Act, and Model Bye-Laws, housing societies cannot enact discriminatory house rules banning tenants based on marital status (e.g. bachelors/spinsters), religion, caste, nationality, or dietary preferences. Any bye-law amendment attempting to enforce discriminatory bans is void under Section 9 of the MCS Act.

Source & Statutory Verification

Source Verified
Official Source DocumentGovernment Resolution No. SAGRUYO-1001/PRA.KRA.135/14-SA
Statutory Provision / SectionSection 79A & Model Bye-Law No. 43(2)(c)
Enacting AuthorityGovernment of Maharashtra, Cooperation, Marketing and Textiles Department
Version & Effective DateState GR dated 13 August 2001 (Eff. 2001-08-13)
Statutory Context: Upheld by Bombay High Court in Mont Blanc CHS vs State of Maharashtra. Binding on all cooperative housing societies in Maharashtra.
Last verified against gazette: 2024-08-15
Official Government Source Portal
Legal Information Notice: This guidance is provided for general informational purposes only. Statutory provisions, departmental rules, and model bye-laws may change over time through legislative amendments or government notifications. Legal and procedural applicability can depend on your society's registered bye-laws, classification, and specific facts. Managing committees and members should verify current requirements with official authorities or seek professional advice before taking formal decisions. This content does not constitute formal legal advice.

Need Guidance on Society Tenancy Rules?

Housenex assists Managing Committees across Thane and Mumbai in standardizing tenant verification and maintaining statutory non-occupancy billing.