Maharashtra, India · property

Can a Builder Sell Parking Space Separately in Maharashtra?

In Maharashtra, builders cannot sell open parking spaces or treat stilt parking as independent real estate units that can be traded separately. Landmark Supreme Court rulings and MahaRERA regulations mandate that parking belongs to the common areas of the housing society, restricting promoters from extracting unlawful charges.

The Legal Framework Governing Parking in Maharashtra

In Maharashtra, developers frequently pressure homebuyers into paying separate, unreceipted charges for car parking slots. The law firmly prohibits this practice. Under the landmark Supreme Court ruling in Nahalchand Laloochand Pvt. Ltd. v. Panchali Co-operative Housing Society Ltd. (2010), the Court established that a promoter has no legal right under the Maharashtra Ownership Flats Act, 1963 (MOFA) to sell open or stilt parking spaces as independent flats or separate garages. Because these areas form part of the building's common areas and facilities, they belong collectively to the flat purchasers.

The Real Estate (Regulation and Development) Act, 2016 (RERA) reinforces this precedent. Under Section 2(n)(iii) of the Act, open parking spaces are expressly categorized as common areas. When a developer builds open parking slots, they receive Floor Space Index (FSI) exemptions from municipal authorities on the strict condition that these areas remain shared amenities, meaning the builder cannot legally commodify or sell them separately.

Open vs. Covered Parking: What Promoters Can and Cannot Charge For

MahaRERA Circular No. 36/2021 issued clear directives governing parking disputes in Maharashtra. Open parking areas cannot be sold or allotted for separate monetary consideration under any circumstances. Any builder demanding cash or an additional fee for an open parking slot is committing a regulatory violation.

While a promoter may allot a covered parking space or basement garage for a defined price during the flat booking, it cannot be sold as an independent unit via a standalone deed to an outsider. The details of the covered parking slot—including its exact layout, dimensions, number, and location—must be explicitly incorporated into the registered Agreement for Sale and tagged to that specific apartment. Once the project receives its Occupancy Certificate and the Co-operative Housing Society (CHS) or association of allottees is registered, all unallotted parking bays automatically vest with the housing society, stripping the builder of any authority to sell remaining slots.

Taking Action Against Unauthorized Parking Charges

If a promoter in Maharashtra is withholding your flat handover, demanding under-the-table cash for a parking slot, or selling vacant parking spaces to outsiders after society formation, you have enforceable legal remedies. Flat owners can lodge a formal complaint before the MahaRERA Authority under Section 31 of RERA for unfair trade practices and non-compliance with the model sale agreement. Alternatively, formed housing societies can approach the competent Consumer Disputes Redressal Commission or the Co-operative Court to reclaim common areas unlawfully retained by the builder.

You do not have to confront an aggressive developer alone or accept unilateral parking demands. You can use Caunsel to research the exact MahaRERA rules governing your project, securely upload and organize your allotment letters and payment receipts in a case file, or connect with an independent real estate lawyer to pursue formal legal action.

Steps

• Audit your registered Agreement for Sale and booking letter to check whether a covered parking bay is numbered, dimensioned, and annexed to the contract.
• Issue a formal written notice or email to the promoter requesting that the parking allotment be regularized and citing MahaRERA Circular No. 36/2021 and Section 2(n) of RERA.
• Refuse to pay cash, unreceipted charges, or sign separate unilateral parking deeds that exist outside your registered sale deed.
• File a formal complaint before MahaRERA under Section 31 of RERA, or pass a society general body resolution to bar the builder from selling unallotted parking to third parties.

Common mistakes

• Paying cash or unrecorded sums to the builder for an open or stilt parking space without demanding an official tax invoice and formal allotment letter.
• Signing a separate memorandum of understanding (MoU) or parking agreement that is intentionally kept off the registered sale deed.
• Assuming that an unsold parking space remains the permanent personal property of the promoter after the society receives its Occupancy Certificate.
• Delaying action until the builder sells vacant stilt slots to commercial entities or non-resident third parties.

Questions people ask

Can a builder in Maharashtra sell an open car parking space?

No. Under Section 2(n) of RERA and MahaRERA Circular No. 36/2021, open parking spaces are statutory common areas provided free of FSI. Promoters are strictly prohibited from selling or allotting open parking spaces for any monetary consideration.

What did the Supreme Court decide in the Nahalchand Laloochand case?

In Nahalchand Laloochand Pvt. Ltd. v. Panchali CHS (2010), the Supreme Court ruled that builders under MOFA have no legal right to sell stilt or open parking spaces as separate units. Such areas are common facilities that transfer to the housing society upon formation.

Can a housing society reallocate parking slots sold by the developer?

Yes. Once the society is registered, open spaces and unallotted parking belong to the collective body. Under model housing society bye-laws in Maharashtra, the managing committee allocates unallotted parking spaces to members, typically on a first-come, first-served basis, and builders cannot dictate this process.

General information only, last updated 2026-10-22. Caunsel is not a law firm and does not practise law. AI answers and this guide are not legal advice. Verify filings, deadlines, and statutes with a licensed lawyer in Maharashtra, India.