Parking spaces are one of the most contentious issues in housing societies, especially in urban areas like Mumbai where every square foot counts. Many homebuyers wonder whether developers can legally sell open, stilt, or podium parking spaces individually. Let’s examine the legal framework in detail and understand who really owns these areas.
The Real Estate (Regulation and Development) Act, 2016 (RERA) brought clarity on the sale and ownership of parking spaces. Prior to RERA, many developers would “sell” parking slots in common areas through separate allotment letters rather than including them in the registered Agreement for Sale, leading to confusion and disputes.
Under RERA:
- Section 2(n) defines common areas to include open parking spaces.
- Section 2(y) defines a garage as a place within a project having a roof and walls on at least three sides, meant for parking vehicles. Unenclosed or uncovered areas like open parking do not fall under this definition.
This means:
- Open parking spaces are legally part of the common areas of the society and cannot be sold separately by the developer.
- Covered parking spaces such as those in the basement, stilt, or podium can be sold as individual units, provided they comply with approvals from the competent authority and are disclosed as part of the project inventory.
Covered Parking vs. Open Parking
- Covered Parking:
Rule 2(1)(j) of the Maharashtra RERA Rules, 2017 clarifies that covered parking refers to enclosed areas (like basement, stilt, podium, or mechanized parking). Such areas may be sold to flat purchasers, and developers are required to disclose them separately in their RERA project registration. - Open Parking:
Open-to-sky parking spaces, even if marked with lines or numbers, are common areas. Developers cannot sell these to individual flat purchasers. Instead, once the housing society is formed, the society decides how to allot and manage these spaces among members.
Stilt and Podium Parking — Are They Open or Covered?
There’s often confusion about whether stilt and podium parking are considered open or covered. Here’s how the law interprets them:
- Stilt Parking – Generally refers to ground-level parking under the building structure. Though not fully walled, it is covered by the building above and is treated as covered parking, not open space.
- Podium Parking – Parking on elevated platforms or slabs, usually open on sides but structurally part of the building. It is also treated as covered parking under RERA.
Therefore, while podium and stilt areas are covered parking, they are not part of “open spaces.” Developers may sell these, subject to approvals, and such sales must be reflected in RERA disclosures.
Closed garages, with a roof and walls on at least three sides, are treated as separate saleable units. These can be sold independently, as they fall outside the scope of “common areas.”
Rights of the Housing Society
Once a society is formed:
- The society becomes the owner of all common areas, including open parking spaces.
- The general body can decide how to allocate these parking spaces among members.
- Developers cannot continue to claim rights over or sell common areas after the society is formed.
Supreme Court Rulings
The Supreme Court in the landmark case of Nahalchand Laloochand Pvt Ltd v. Panchali Co-operative Housing Society Ltd. (2010) held:
- Open parking spaces cannot be sold separately as they form part of common areas.
- Developers cannot charge separately for such spaces.
This ruling still guides decisions on the legality of parking space sales even under the RERA regime.
Conclusion
- Open parking belongs to the housing society and cannot be sold by the developer.
- Stilt and podium parking are classified as covered parking and may be sold individually if properly disclosed and approved.
- Closed garages are saleable units.
Homebuyers should always check:
- RERA disclosures for covered parking inventory,
- The project’s approved plans,
- And insist that any parking allocation is mentioned in the registered Agreement for Sale.
Understanding the law helps avoid disputes and ensures that your rights as a flat purchaser are protected.
