🏢 Car Parking Disputes in Real Estate: A Growing Legal Flashpoint
Car parking has evolved into one of the most litigated aspects under the Real Estate (Regulation and Development) Act, 2016, especially in urban markets like Chennai and Mumbai.
Two major regulatory developments—one from MahaRERA and another from TNRERA—have now clarified:
👉 Parking is not just about allocation—it is about legality + usability.
⚖️ Landmark Legal Backbone
🧑⚖️ Supreme Court Precedent
The foundation comes from:
- Nahalchand Laloochand Pvt Ltd v Panchali Co-operative Housing Society Ltd
Core ruling:
- Stilt and open parking spaces are part of common areas
- Developers cannot sell them separately
📍 TNRERA Case: Illegal Charging for Parking
🏛️ Authority
- Tamil Nadu Real Estate Regulatory Authority
📖 Facts
- Apartment buyer in Chennai
- Builder charged ₹3–5 lakhs for “covered parking”
- Parking was:
- Stilt / open space
- Not clearly approved in plan
👉 Buyer paid under pressure → later filed complaint
⚖️ Key Issues
- Can parking be sold separately?
- Is parking a common area?
- Can buyer seek refund?
🧾 TNRERA Judgment
✔️ Parking (stilt/open) = common area
✔️ Cannot be sold separately under RERA
✔️ Agreement clauses cannot override statutory law
👉 Final Order:
- Full refund of parking charges
- Interest (often ~10%)
- Parking treated as association-controlled common facility
🏗️ MahaRERA Case: Parking Must Be Usable
🏛️ Authority
- Maharashtra Real Estate Regulatory Authority
📖 Facts
- Buyer received flat possession
- Parking allotted only on paper
- Actual parking:
- In another building
- Still under construction
⚖️ MahaRERA Findings
❌ Paper allotment is not sufficient
✅ Parking must be:
- Physically accessible
- Functional
- Ready for use
👉 Developer ordered to:
- Provide alternate parking immediately
- Deliver proper parking within 3 months
🔍 Combined Legal Position (Very Important)
| Aspect | Legal Rule |
|---|---|
| Sale of parking | ❌ Not allowed (except garage) |
| Nature of right | ✅ Right to use (not ownership) |
| Delivery obligation | ✅ Must be usable at possession |
| Agreement clauses | ❌ Cannot override law |
⚠️ Classification of Parking (Critical for Buyers)
| Type of Parking | Legal Status |
|---|---|
| Open Parking | ❌ Cannot be sold |
| Stilt Parking | ❌ Cannot be sold |
| Covered (but open-sided) | ❌ Not saleable |
| Enclosed Garage | ✅ Can be sold |
🧠 Practical Reality in Chennai & Tamil Nadu
Despite clear rulings:
- Developers still:
- Charge separately under labels like “covered parking”
- Bundle parking cost indirectly
- Buyers:
- Pay due to urgency or lack of awareness
- Later approach TNRERA for refund
📊 Strategic Insight for Property Buyers & Advisors
Always Verify:
- Approved plan (CMDA / DTCP)
- Whether parking is:
- Marked as common area
- Registered as independent garage unit
👉 If not a registered garage →
You have a strong legal case for refund + relief
🔗 Advanced Insight: Usability + Legality Together
The two rulings combined establish a powerful doctrine:
Even if parking cannot be sold, once money is collected, the developer must still provide usable parking space.
So developers face double liability:
- Illegal sale → refund risk
- Non-usable parking → compliance violation