Car parking has become one of the most controversial issues in Indian real estate. Many flat buyers are shocked when their builder demands ₹2–5 lakhs (or more) separately for an open parking space.
Can a builder legally charge you for open parking?
Let’s break this down in simple language using the law, Supreme Court judgments, and RERA rules.
The Short Answer
No. A builder cannot legally sell or charge separately for open parking spaces.
Open parking is considered a common area, and its cost must already be included in the flat price.
But to truly understand why, we need to look at two major legal pillars:
- The Supreme Court judgment in Nahalchand Laloochand Pvt. Ltd. v. Panchali Co-operative Housing Society Ltd.
- The Real Estate (Regulation and Development) Act, 2016 (RERA)
1️⃣ The Landmark Supreme Court Judgment (2010)
Before RERA, builders commonly sold open and stilt parking spaces separately. Buyers had no clear protection.
Everything changed in 2010. In the case of Nahalchand Laloochand, the Supreme Court clearly ruled:
- Open parking spaces are part of common areas.
- Stilt parking spaces are also common areas.
- Builders cannot sell them separately.
- Any agreement forcing buyers to pay extra is invalid and illegal.
What Did the Court Say?
The Court clarified that a “garage” must have a roof and walls on three sides. Open and stilt parking do not qualify as garages, therefore they cannot be sold as independent units.
2️⃣ What Does RERA Say About Parking?
The Real Estate (Regulation and Development) Act, 2016 made things even clearer.
🔹 Section 2(n): Common Areas
RERA specifically includes:
- Open parking areas
- Basements
- Common spaces
This means: Open parking belongs to all flat owners collectively — not to the builder.
🔹 Section 2(y): Definition of Garage
RERA defines a garage as:
A space with a roof and walls on at least three sides.
Only such fully enclosed garages can be legally sold.
3️⃣ Types of Parking & Their Legal Status
Here’s a simple breakdown of what is legal:
| Type of Parking | Can Builder Sell? | Legal Status |
|---|---|---|
| Open Parking (No roof, no walls) | ❌ No | Common Area |
| Stilt Parking (Roof, but no walls) | ❌ No | Common Area |
| Covered Basement | ⚠️ Sometimes | Depends on strict RERA disclosure |
| Enclosed Garage (Roof + 3 walls) | ✅ Yes | Private Unit |
4️⃣ What About West Bengal?
If you’re buying property in Kolkata or West Bengal, this is highly important.
West Bengal initially tried to implement a separate law called WBHIRA, which had loopholes. But in 2021, the Supreme Court struck it down and enforced central RERA.
Today, projects are regulated by the West Bengal Real Estate Regulatory Authority (WBRERA).
- Builders must declare exactly how many open vs. covered spaces exist at registration.
- Open parking cannot be sold.
- Your agreement must clearly state the specific parking slot number and size.
5️⃣ Can the Society Charge Parking Fees?
Yes — but there’s a big difference!
❌ Builder cannot charge a capital cost to “buy” open parking.
✅ Housing society can charge maintenance fees.
After handover:
- Parking allocation is managed by the Resident Welfare Association (RWA).
- The society can charge monthly parking fees for maintenance, security, and lighting.
- This is a service fee, not a real estate sale.
6️⃣ What Should You Do as a Buyer?
Before booking your flat:
- ✔ Check the project on the state RERA website.
- ✔ Verify the sanctioned layout plan.
- ✔ Read the Builder-Buyer Agreement carefully.
- ✔ Ensure the parking type (garage vs. open) is clearly mentioned.
- ✔ Refuse to pay extra for open parking.
If a builder insists on charging separately for open parking, you can file a complaint with the State RERA Authority.
7️⃣ How Propserve Can Help You
Real estate paperwork is full of legal jargon, and it is easy to accidentally sign away your rights or pay for something that is legally free. That is where Propserve steps in. As your trusted real estate consultants, we meticulously audit your Builder-Buyer Agreements, verify RERA portal disclosures, and check municipal layout plans before you sign anything. We ensure you are only paying for legally saleable property, giving you total peace of mind and protecting your hard-earned money.
📞 Contact Propserve today for a complete document review before you finalize your flat purchase!
Propserve’s Official RERA Parking FAQ: Your Top Questions Answered
1. Can a builder legally charge me for an open car parking space?
No. Under RERA, open parking spaces are strictly classified as “common areas”. Builders are legally prohibited from selling them or charging separate allocation fees. Their construction cost must be included in your flat’s base price.
2. Is it legal for a builder to sell stilt parking?
No. Because stilt parking lacks enclosing walls, it does not legally qualify as an independent garage. RERA and Supreme Court rulings classify stilt parking as a shared common amenity, meaning developers cannot sell it for a separate premium.
3. What type of parking space can a builder actually sell?
Builders can legally sell a fully enclosed “garage,” defined as having a permanent roof and walls on at least three sides. They can also sell covered basement or podium parking if explicitly declared during the RERA registration process.
4. Can the housing society charge monthly parking fees even if the builder can’t sell the space?
Yes. After handover, the Resident Welfare Association (RWA) manages common parking. They are legally empowered to collect monthly or annual parking fees. These are not purchase costs, but necessary charges to fund maintenance, lighting, and security infrastructure.
5. Do I have to pay GST on a car parking space?
Yes. If you purchase the right to use a covered parking space, it is legally treated as an independent service supply. Consequently, it typically attracts a standard 18% GST rate, independent of the concessional tax rate applied to your flat.
6. What should I do if my builder forces me to pay for open parking?
You should refuse payment and file a formal statutory complaint with your state’s Real Estate Regulatory Authority (RERA). The RERA tribunal has the power to order the developer to refund any illicitly collected parking fees with substantial penal interest.
