A Builder cannot sell open or stilt parking spaces


Parking space is a major issue faced by the residents living in societies and gated colonies. The builders often leverage the need of the flat buyers for parking spaces. They specifically sell the parking spaces and make money of the sale of such places. However, this is not allowed as has been held by the Supreme Court in the case of Nahalchand Laloochand P.Ltd v. Panchali Co-Op.Hng.Sty.Ltd.In this case the Apex Court held that, Open to the sky parking area or stilted portion usable as parking space is not `garage’ within the meaning of Section 2(a-1) of the Transfer of Property Act, 1882 and, therefore, not sellable independently as a flat or along with a flat.The Supreme Court stated that such a move does not put the builder at a loss since he is already entitled to charge a price for the common areas and facilities from each flat purchaser in proportion to the carpet area of the flat. A stilt parking space or an open parking space in the premises of the society does not come under the definition of ‘garage’ or a ‘flat’. Therefore, such a space is not sellable at all. 

Implications for Consumers

The sale of open or stilt parking spaces by builders has been illegal. This means that the purchase of such spaces has also become void. If you have already purchased a parking space as a separate item from the builder and have an agreement or document which provides evidence that the buyer purchased the parking, the decision can be challenged and relief can be sought through the District Consumer Dispute Redressal Forum or concerned RERA Authority.

How can a Law Firm or a Lawyer Assist you? 

An individual is permitted to file a complaint before the Consumer Court and the RERA without the help of a lawyer. However, the hiring of a lawyer or a law firm can make the process easier since they can assist you with the drafting of the complaint, attend hearings before the Court and provide legal advice as to the best possible approach considering your situation. 

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