News: Builders Cannot Sell Open or Stilt Parking Separately-22-03-2026

A homebuyer in Bengaluru told Hindustan Times Real Estate that he was asked for an extra Rs 2-2.5 lakh for parking on top of an apartment base price of about Rs 85 lakh. The charge was described as mandatory even though he was already paying for common areas, which he said raised concerns about clarity and possible overcharging.

Buyers across several projects say they are asked for Rs 5-10 lakh or more for parking. Legal experts say the practice continues mainly because buyers are unaware of their rights and because of how agreements are drafted.

The law, they say, is settled by the Supreme Court’s ruling in Nahalchand Laloochand Pvt Ltd vs Panchali Cooperative Housing Society Ltd. Simranjeet Singh, partner at Athena Legal, said the court held that stilt and open parking are part of common areas and facilities and are not a "flat or garage" that can be sold independently. The cost may be built into the composite price of the flat, but any separate charge or sale is legally impermissible.

Singh said earlier sales of such parking by developers are unenforceable as far as ownership rights go, and the spaces must eventually vest with the housing society. Buyers may still seek equitable relief such as refunds or preferential usage. He added that RERA’s definition of "common areas" includes open parking areas, which makes the position clear across India.

Advocate Chandrachur Bhattacharyya said Section 3 (f) (3) of the Karnataka Apartment Ownership Act, 1972, also includes parking space within "common areas and facilities". If a builder already charges for common areas, he said, parking is effectively covered by that cost. In practice the charge is often written into the agreement, and buyers end up paying because developers may otherwise delay or deny possession.

Singh said buyers can go to consumer commissions or RERA authorities for refunds, interest and compensation.

Once a society is formed and conveyance completed, it has full control over common areas, including parking. Singh said it can review, regulate and even cancel earlier allotments by the builder that are inconsistent with the law. Such action must not be arbitrary, must follow the by-laws and should be guided by equity and fairness.

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