From “No Bachelors Allowed” to hidden charges, India’s courts and governments are finally cracking down on housing societies that exploit tenants.
The Big City Dream vs. the Harsh Reality of Housing Society Rules
In August 2025, the Bombay High Court disturbed the functioning of housing societies by holding that charges for maintenance should be calculated in proportion to the flat size and not equally distributed among all residents. At more or less the same time, a Mumbai co-operative society was directed to return extra non-occupancy charges illegally collected by it, and the government in Gurgaon initiated an investigation into Resident Welfare Associations (RWAs) charged with financial scams and illegal constructions.
These instances prove how removed some societies have become from the law. Housing societies were designed to promote order and concord in domestic living, yet most of them today are like private clubs with capricious rules.
. Tenants and newcomers are the easiest targets. From discriminatory rental bans to hidden charges, thousands face illegal hurdles simply because they are unaware of their rights. This blog unpacks the illegal tricks societies play, the latest 2025 rulings, the legal consequences societies risk, and a practical tenant guide for fighting back.
Common Housing Society Rules That Exploit Tenants and Why They Are Illegal
Tenants across Indian cities often encounter rules that seem official but collapse under legal scrutiny. For example, many societies still deny flats to bachelors or people from certain religions or communities. Such rules are unconstitutional and violate Articles 14, 15, and 21, yet they continue in practice. Others impose inflated “non-occupancy charges” when an owner rents out a flat, even though the law caps these at 10% of the service portion of maintenance.
Even more troubling are the surprise “move-in” or “move-out” fees. These one-time charges have no recognition in any cooperative housing law but are often demanded from unsuspecting tenants. Societies also attempt to block tenants from using gyms, pools, or gardens, even though these are common facilities that every resident paying maintenance has a right to use.
The list goes on. Some societies charge tenants higher maintenance without approval from the Annual General Meeting, while others resort to cutting off essential services like water or electricity if dues are unpaid. Both practices are illegal. Arbitrary fines for children playing in parking areas or for pets using lifts also have no legal basis. And finally, when it comes to buying or selling a flat, societies often demand transfer fees exceeding ₹1 lakh, even though the government has capped this at ₹25,000.
What the Courts and Governments Are Saying in 2025
The Bombay High Court ruling in August 2025 has become a milestone in clarifying that maintenance must be proportional to apartment size, not equally divided. This ensures that smaller flat owners or tenants are not unfairly burdened. The Maharashtra government has also restated its position that non-occupancy charges cannot exceed 10% and transfer fees must remain capped.
Meanwhile, in Mumbai, a society was forced to refund illegal charges it had been collecting under the label of a “development fund.” In Gurgaon, the Department of Town and Country Planning has launched strict investigations into RWAs accused of running unauthorized financial schemes and constructing illegal extensions. Across India, courts and regulators are sending a single message: societies cannot run on whims; they must respect the law.
Legal Consequences Housing Societies Face for Breaking the Law
Illegal practices do not just harm tenants; they can boomerang back on societies with severe legal and financial consequences. Registrars of Cooperative Societies have the authority to dissolve or suspend managing committees that repeatedly flout bye-laws. Courts can order refunds of illegal fees along with interest, forcing societies to return large sums to residents.
Society office-bearers can also face monetary fines under the Maharashtra Cooperative Societies Act, while members guilty of misconduct may be disqualified from holding posts for up to five years. When discrimination involves religion or caste, societies expose themselves to provisions of the Indian Penal Code, including Sections 153A and 295A, which carry both fines and possible jail time. Consumer courts have also awarded compensation for harassment and unlawful financial demands, and civil courts can be approached to recover wrongfully collected money.
In short, the idea that “the society is above the law” is being dismantled, and committees that ignore the law now risk suspension, penalties, and lasting reputational damage.
A Practical Survival Guide for Tenants Moving to Cities in 2025
For tenants and job-seekers moving into India’s fast-growing cities, awareness is your most reliable shield. Always demand written proof of any rule or new charge; never rely on verbal instructions. Keep every payment documented and avoid cash transactions without receipts. If your society overcharges or discriminates, approach the Registrar of Cooperative Societies to challenge the action. For harassment or denial of services, the Consumer Court can award you compensation. If your case involves discrimination based on caste, religion, or marital status, you have the option of going to the High Court, which has consistently upheld tenant rights.
By knowing these remedies and asserting your rights, you can avoid becoming an easy target for societies that thrive on tenants’ ignorance.
Why Tenants and Job-Seekers Must Know Their Rights Before Renting a Flat
India’s urban landscape attracts millions every year, but the promise of city life is often tested the moment tenants face housing society politics. Societies that impose discriminatory rules, collect illegal fees, or cut off basic services overstep their authority. The recent August 2025 rulings and government crackdowns are a timely reminder that societies are not private kingdoms; they are bound by law.
For tenants, this is both reassurance and a call to action. Whether you are a bachelor heading to Mumbai, an IT professional shifting to Bangalore, or a family moving to Gurgaon, remember: if society says you cannot, the law often says you can. Awareness is not optional—it is the key to living with dignity in India’s cities.
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Author: Anjali Pandey
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