Can a Builder Sell You Stilt Parking in Mumbai? What the Supreme Court Decided
In Nahalchand Laloochand (2010), the Supreme Court held that stilt parking is a common area that developers can't sell separately. What buyers and societies should know.
Parking is one of the most argued-about things in Mumbai buildings. Buyers are sometimes asked to pay lakhs for a "parking slot" on top of the flat price. Whether that's allowed depends on what kind of slot it is.
The Supreme Court ruling
In Nahalchand Laloochand Pvt Ltd v. Panchali Co-operative Housing Society (2010), the Supreme Court upheld the Bombay High Court's view that a developer can't sell stilt parking as an independent unit. Stilt and open parking spaces are part of the common areas, and once the building is handed over they belong to the society, which allots them.
What can and can't be sold
| Type of parking | Can the developer sell it separately? |
|---|---|
| Stilt parking (open space under the building) | No. Common area. |
| Open parking in the compound | No. Common area. |
| Closed garage (enclosed, with walls and a door) | Commentary says yes, as a separate unit |
You can buy a garage. You can't buy a stilt or open slot. That belongs to the society, which allots it.
What the society can do
- Allot stilt and open slots among members through general body decisions.
- Charge parking fees as set by the general body, which can vary for multiple vehicles.
- Rotate or reallocate slots when there aren't enough for everyone.
Members get a right to use a slot, not ownership of it.
For buyers
- Read the agreement. Check whether the "parking" you're paying for is a stilt, open or garage space.
- Don't pay separately for stilt or open parking. Ask the developer to remove it from the price.
- For resale flats, check with the society how parking is allotted. A seller can't sell you the society's slot.
For landlords
If your flat has an allotted slot, state in the leave and licence agreement whether the tenant can use it, and follow society rules on visitors' parking.
Related reading
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Sources
- Housing.com: Can a society charge extra for parking?
- BCAJ: Promoter has no right to sell stilt parking space
General information, not legal advice.
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