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Supreme Court Judgement on Car Parking in Flats: Legal Impact for Buyers

Supreme Court Judgement on Car Parking in Flats

Supreme Court judgement on Car parking in flats has long been a highly debated topic when it comes to apartment living in urban cities. With skyrocketing vehicle ownership in India, parking space management in residential apartments has often become a matter of dispute among flat owners, developers, and Resident Welfare Associations (RWAs). 

The recent Supreme Court order on parking in Cooperative Societies is a watershed moment that has brought clarity to the parking rights, mechanisms for allocation, and legal responsibilities of various stakeholders. 

Why Car Parking Is a Critical Issue in Residential Societies Today?

This legal framework must be understood by all present and prospective apartment owners.
The gradual rise Supreme Court Judgement on Car Parking in Flats in vehicular ownership vis-a-vis urban India is on account of, and therefore accompanied by increased incomes, aspirations, and, not to forget, urbanization. Car parking issues in apartments:

  • Poor Space Planning: Most residential properties were constructed when ownership of vehicles was very low. Presently, the parking infrastructure is proving irrelevant to the number of four-wheelers or two-wheelers in the city today.
  • Random Admin Fees by Developers: Some developers sold apartments without mentioning car parking allotments and later charged for much sought-after parking spaces, which homeowners believe were part of the flat.
  • Discrepancy: Some societies start with some offering free open parking, and some decide to convert common areas into paid parking lots or convert them into commercialized stilt parking.
  • Conflict Between Residents: Vague or unfair parking rules have led to disputes among apartment owners. Most of these disputes concern issues of unauthorized use of parking spaces or arbitrary reallocation.

This vacuum created uncertainty for homebuyers and increased the demand for a clear legal structure for parking provision in apartment complexes. The Supreme Court has now resolved this uncertainty.

See also: What is Stilt Parking: Meaning, Stilt Area & Floor Plan

The Legal Framework of Car Parking in Residential Societies

The rules relating to parking in residential areas actually emerge from a combination of central, state, and local municipal laws. In general, these rules also have some principal frameworks (among many others) that they are based upon: 

  • The National Building Code (NBC) of India: It is a set of minimum standards for the parking space requirements of four-wheelers. According to it, 13.75 square meters should be assigned to four-wheelers and 1.25 square meters to two-wheelers, so that a certain degree of planning uniformity can be attained. 
  • Model Building Byelaws framed by the Ministry of Housing and Urban Affairs: Provides recommendations on how two Equivalent Car Spaces (ECS) are provided for every 100 square metres of construction area. 
  • Apartment Laws in different States: These justify the framing of parking rules in housing societies by managing committees or RWAs under the purview of acts like the Societies Registration Act 1860 or the Cooperative Societies Acts. 

In fact, however, they still leave a lot of questions concerning whether the separate sale of open and stilt parking spaces by developers is treated as a common area.

See also: RERA Compliance Checklist for 2025: Safeguard Your Real Estate Project

What is the Role of RERA in Parking Allotment?

To safeguard homebuyers and ensure real estate transactions are transparent, the Real Estate (Regulation and Development) Act (RERA), 2016, was enacted. The following are the Supreme Court judgement on Car parking in flats rules regarding parking allotment in residential projects as provided for under RERA rules for parking allotment:

  • Mandatory Disclosure: Developers must indicate a clear parking allotment in the project layout submitted to the RERA authority. 
  • Separate Agreements: Parking allotment agreements shall be treated separately from flat allotment agreements so that the home buyers have clarity regarding the charges and locations.
  • No Unilateral Changes: The developers cannot make any changes to the parking allocations after the sale without the consent of the homeowners.
  • Definition of Common Areas: Open parking and stilt parking are termed common areas, which shall not be sold as independent units.

These regulations intend to provide homebuyers with clarity on the distinction between free parking (which comes with the flat price) and paid car parking (garage or enclosed spaces sold at a separate cost).

The Landmark Supreme Court Judgement

In the case of Nahalchand Laloochand Pvt. Ltd. vs. Panchali Cooperative Housing Society, the Supreme Court Judgement on Car Parking in Flats is concerned and also set most of the points in doubt over it.

Key Highlights from the Judgement

  • Open and Stilt Parking = Common Area: The apex court said that these parts are shared by all the residents in the common areas.
  • No Separate Sale Allowed: Open parking and stilt spaces cannot be sold separately at all by a developer.
  • Cost Consideration: Such parking spaces need to be included in flat sale consideration, without any extra charge.
  • Garage Exception Cleared: A completely enclosed garage may be sold separately, only if the sanctioned building plan directly permits such sale.

This ruling duly provided the legal standard in question ensuring few as well as fair standards on parking in apartment complexes against arbitrary charges by developers.

See also: RERA Approved Meaning, Benefits & Differences Explained

Impact of the Supreme Court Judgement on Car Parking In Flats

Ownership Rights Delineation

This has probably been one of the most important results of this judgment. It has made distinct four wheeler parking rights for homeowners as follows:

  • Every apartment owner is entitled to open and stilt parking spaces, free of charge.
  • The cost of such parking is already included in the price of a flat, and is thus completely transparent.

Protection Against Arbitrary Developer Practices

Before the Supreme Court judgement on Car parking in flats judgment, several builders have levied extra costs for stilt or open parking, or guaranteed parking conditionally. The Supreme Court order now prohibits:

  • Open or stilt parking will not be charged separately.
  • Reallocation of parking slots post-sale by the developer unilaterally. 

Role of RWAs Reinforced

Resident Welfare Associations (RWA) can and will henceforth: 

  • Equitably distribute parking space among the residents with the help of transparent and pre-defined rules. 
  • Prevent any unauthorized sale or misuse of parking spaces in accordance with the Supreme Court judgment. 

Structurally, this protects residents from arbitrary or preferential treatment, ensuring community harmony.

Different Types of Parking: What Homeowners Should Know

Different Types of Car Parking: Supreme Court Judgement on Car Parking in Flats

Understanding the types of parking helps residents identify the nature and make better decisions with them so as to avoid trouble with the law:

  • Open Parking: open spaces within the complex not formed by any structure. Cannot be sold as different units and managed by RWAs.
  • Stilt Parking: Parking below the structure but is not grouped in an entirely built exterior space. Common property according to the Supreme Court.
  • Covered Garage (Enclosed Parking): Considered their private parking garage and can sell it like any other unit in the event that approved in the sanctioned plan.

Knowing the difference is vital for owners to be able to ascertain whether additional charges proposed by the developers are legal or unlawful.

Resolving Car Parking Disputes

Not infrequently, parking disputes arise; legal provisions notwithstanding. Therefore, Supreme Court Judgement on Car Parking in Flats & owners need to know about the options available to them, including:

Court Approach

  • Evidence: Owners should maintain all possible evidence, from sale agreements to layouts of project plans and any form of communication that would back a claim to such entitlement.
  • Civil Suits: Illegal sale or transfer of parking is liable to injunction or damages against the sued parties in civil law.
  • Consumer Courts: Best suited for dealing with complaints against developers arising from misleading clauses with respect to parking allotment. 

Alternative Dispute Resolution

  • Mediation and Conciliation: Help in putting an end to disputes without going through formal, long court proceedings.
  • RWA Intervention: The RWA is widely expected to mediate and enforce parking norms.

See also: RERA Rules & Regulations: Key Guidelines for Homebuyers & Developers

Role of RERA Authority

  • Complaint filing adoption: Housing Users are entitled to present complaints about the regulation of parking within the jurisdiction of RERA.
  • Investigation and orders: On finding sufficient evidence establishing a violation, the RERA authority may recommend repayment or tighten the enforcement of the order.
  • Rights of consumers: Guarantees compliance with the law by developers.

High Court Judgements on Parking Space

With several High Courts & Supreme Court Judgement on Car Parking in Flats reiterating similar principles, the states have their own implementation mechanisms with respect to parking rules. These judgments provide that:

1. Open and stilt parking remain non-transferable.

2. Covered garages shall only be sold as independent units if expressly allowed by the sanctioned plans.

These judgments serve to uphold the principles on car parking in flats as laid down by the Supreme Court and thus strengthen the theory and develop a uniform body of law.

What is the Bye Law for Parking in Housing Society?

Bye-law for parking in housing society:

  • The parking provision by the municipal building bylaws is based on minimum requirements determined by property size.
  • RWAs should develop a policy on parking in accordance with the relevant state apartment law.
  • Charges for paid car parking must be transparent, documented, and compliant with the law.
  • Adherence to the bye-laws lays down a prospect of creating an otherwise arbitrary practice into a harmonious residential experience.

Conclusion

The Supreme Court judgement on Car parking in flatsruling concerning car parking in flats has ushered in much-needed clarity and fairness in the allocation and management of parking spaces. In its ruling, the Court has protected the buyers from being exploited by the developers by stating that open and stilt parking is a common area included in the consideration of the flat and cannot be sold independently. 

The framework thus secures owners of apartments transparently so as to minimize any subsequent disputes and to conform to RERA’s regulations concerning the allotment of parking and the state bye-laws. These bylaws assure that, in an ever-congested urban milieu, the transactions of an apartment dweller are organized, equitable, and void from any conflict.

FAQ’s

No. Developers are prohibited from selling open or stilt parking spaces as independent entities. They fall under common areas and must be included in the overall price of the flat.

Covered garages (entirely enclosed parking) may be independently sold unless the sanctioned building plan explicitly prohibits this sale, which must be mentioned in the builder-buyer agreement.

They allocate parking slots in a fair and transparent manner among the residents, and enforce rules for parking based on the Supreme Court judgment and state apartment acts.

The Act mandates full disclosure of details regarding parking provisions in the project plan. Home-buyers can lodge a complaint against such developers who illegally sell parking; RERA can order a refund, impose a penalty, or direct corrective action.

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