Owning a vehicle is multi-pronged torture. The cars are costly, the fuels costlier and then there are parking spaces. While a hike in fuel prices is unfortunately perfectly legal, the ever increasing prices of the parking lot that comes with your flat isn’t exactly so.
Have you ever wondered why your builder is charging exorbitant price for selling out a parking space when it should be an obvious ancillary benefit with the flat you purchase? You are neither wrong nor alone. Builders across country have been minting money out of this ridiculous practice, tormenting the hapless flat owners who are usually left with no choice but to shell out the money. Several flat-owners all over our country have dealt with the menace of buying car parking space from builders at ridiculous costs. The price demanded by builders for a single parking space is anywhere in the range of one lakh to fifteen lakh rupees. Some of the richer flat-owners with a lot of disposable income even purchase multiple parking spaces for themselves.
So acceptable is this practise that no one normally even wonders if it is legal or not. But one harrowed consumer did notice this and contacted Akosha. And of course, our team diligently got down getting the exact legal position in this regard. We honestly weren’t surprised. This practise is indeed illegal, struck down by the Supreme Court itself.
Supreme Court, in its 2010 verdict has clearly stated that “Open-to-sky” areas or “stilted” (covered) portions of their flat complexes, usable as parking spaces, cannot be sold separately by flat builders/promoters/developers as “garage”. The court reasoned that these spaces are part of the “common areas” in flat complexes and are therefore “not saleable independently as a flat or along with a flat”.
In absence of legislation to the contrary, this verdict of Supreme Court is the law of the land and any builder “selling” out the parking space is clearly in violation of the law. The practise in short is downright illegal. High Courts and Consumer Forums across India have extensively struck down this practise based on this Supreme Court verdict. Any consumer aggrieved by this practise has sufficient grounds to approach the Consumer Forum for relief if the builder refuses to relent and continues to torment them with exorbitantly priced parking spaces.
(For a case by case legal analysis of the issue, refer to our Legal Eagle Reports.)
i think we all know its illegal, thats why builders ask for this money in CASH
this is now such a common practise thats its going to be so much difficult to get out of the system
what can be done effecively for this thing could be a body to track such transactions.
we are talking about all the big builders having good political connections, that a normal consumer cant really do much about it
but good initiative by akosha i hope you guys get deep into this mess
Hi Javs,
Our sole intention behind bringing forth such stories is to create as much awareness with respect to such issues as possible and we really want more and more consumers to not only be aware of their rights but also take initiatives to claim them. We agree with the fact that problem is deep rooted and good political connections is a very relevant concern but consumer forums in past have come up with verdicts and orders that have really and truly benefited the consumers. We know the system’s shortcomings but it is our sincere effort to not let the cynicism prevail and let common consumers know that power does lie with them, only if they choose to exercise it.
Runjhun from Akosha
IT is a common practice and builder generally asked this (car parking charges) as case so we donot have any option except to pay and do not any proof to prove it when case put before consumer court. So How to deal with it.
My suggestion would be, builders generally put advertisement with all the information in price list including car parking, PLC (again not legal), why not you people take a not of that and move supreme court for the same.
Hi Noor,
The issue already has been taken up by Supreme Court as we have discussed in this article and this practice has been struck down. The problem lies in implementation and lack of consumer awareness in this regard. In case such a grievance arises, the issue can be easily taken up to a consumer court which has almost always ruled in favor of the consumers in such similar cases.
Runjhun
Thanks for ur prompt reply,
But i am still not clear. As builder took this money(car parking) as cash, so suppose i put a case before consumer court, court will certainly ask for proof of payment. but i will not have any proof as money is paid as cash.
My query is how and what to provide as a proof for the same.
Regards
Noor
Hi Noor,
You are right, proof in such cases is a tricky scenario.We really hope you have receipts for this exchange of cash, in which case the case can be easily established in consumer court. But, if the receipts are not there, we are afraid, it really is difficult to prove. One of the reasons why we have always warned our readers against cash transactions without receipts. You can, however, consult a lawyer for more details and possibilities.
Runjhun
Can the builder charge for the covered parking slot (Noida) as my builder is doing the same? Moreover they are saying that they would be giving me registered document for the same after paying stamp duty. As per them they are doing these transactions on daily basis.
Can such transaction be challenged in court?
Now the builders have started quoting a consolidated price- flat with car parking space.The cost of parking space is not shown seperately in the sale deed…How to deal with this?
Hi Arun,
They are just different facets of the same malpractice and do not really have straight answers. The only solution is to drag the builders in question to the consumer court and then variously establish the prevailing malpractice through documentary and other evidences like actual price of the flats as per the prevailing market rate, the price charged, the ambiguous wording of the agreement etc..
Runjhun
Hi. I have an email from the builder where they have attached an excel sheet that contains the total cost, segmented into separate sections. The section "Other charges" is for 3.5 lacs that contains MSEB (Electric connection) charges, parking cost and something else that I don't remember (although it's mentioned as a flat rate, without the mention of Parking or MSEB). My questions is, can I use that email and attachment as a proof in the consumer court and fight against the enormous amount of "Other charges"? I'm sure a lawyer would be able to advise better, but unless I go there, do you know if Supreme Court has a ruling on any kind of "Other charges" that a builder is entitled to take from buyers? The total flat cost is around 33 lacs, that includes Service Tax, Registration, Stamp duty, 2 years maintenance, Other charges, documentation and lawyer charges etc. plus the flat cost of the apartment.
Hi Sudhulika,
To the best of our knowledge, the email and attachment should work as valid evidence (as they are forms of written communication) and would be even more convincing if you have trailing mails. As far as other charges are concerned, service tax, registration fee etc are chargeable but SC in India has specifically ruled that builders cannot charge for parking spaces. For details, you can see Tadka's story http://bit.ly/NSYmf2. Hope this helps
Thanks. I'll try. Let's see how it goes.
Hi Runjhun,
Thank you very much for educating us on this. We need a proof of the laws on this topic from the Govt. of India. Where can we find the same? Just asking because to show the builders about the law framed by the Govt. otherwise they will never be convinced.
Hi Abhishek. As we have mentioned in the article itself, the law on this issue is the Supreme Court verdict that came out in 2010 and is good a law as any legislation by relevant authorities. If you want, you can get a copy of this judgment from the Supreme Court's website.
Hi Runjhun ,
I purchased a house in Navi Mumbai few years back and I was asked to pay parking charges of rs25000 for buying a stilt parking. I told society that I will make the payment in couple of months. I dint not make the payment because I heard that its illegal to sell parking and also the society dint ask for the payment after that. Now 10days back I got a letter from the society asking me to pay rs25000 and also interest for all these days that I have used the parking.
Now this was not a new flat bought from a builder and was in resale and its not the builder but the society secretary who is asking me to pay this amount so does the same rule apply here as well.
And how do you suggest me to proceed with this as they have sent me a written letter and I have a documented proof of they asking me to pay for the parking.
Please advise.
Manoj Goyal.
Hi Manoj, I think in this case, local consumer forum is your best bet. But before you approach the forum, try talking to the people in question and threaten them with a legal action. This usually works.
I have tried to threaten them with a legal action but dint make any difference , how can Akosha help me in this case.
File your complaint with full details at http://www.akosha.com/ and someone from our team will get promptly in touch with you to suggest the way ahead.
Hi Rujihun,
We are planning to buy a house at Thane (Near Mumbai), and searched with many builders. All the reputed builders as well as small builders are asking for parking charges ranging from 4 to 5 Lakhs. Most of them asking cash against the same. How to deal with it.
regards
S.Nair
Thanks Runjhun,
This article is really helpful. though I visited this page as I also have similar problem. I bought a flat in south Delhi. At that time builder shown us full ground floor could be used as shared parking. After selling all the flats now he is building a shop in shared parking area. My question is do builder still have any ownership in shared parking area to create a shop and put it on rent?
Does a parking slot purchased from the promoter get transferred to the new buyer in a society
Dear Madam
Can any one help me into this below matter–
I have booked a flat in one of the mahagun buider’s project called “MAHAGUNPUAM”, Mehruli, Ghazibad.
At the time of booking there is person named Mr.Deepak, he verbally confirmed me that by the order of gov. no any builder can sell open car parking and if I am not booking the covered car parking I can park it in open area. And that time they were offering it @ Rs.150000/- (Covered Parking).
But after some time again I was confirmed by their staff that if I don’t have covered parking I’ll be not allowed to take my car inside the society and do parking in open area. So I asked them to book but they were demanding Rs.200000/- and I requested to book it @Rs.150000/- but they were not agree to book, after 5-7 days I wrote a mail to them and asked to book it @Rs.200000/- then they were telling me that they stopped booking the parking and they will do it at the time of giving possession, again I wrote a mail and asked them what if they’ll increase the rate again? Unnecessary I have to pay that amount. Then they wrote me that they can’t do anything and I have to pay.Now they are demanding Rs.300000/-. And they issued me demand letter for the same on 20/12/12 with due date of 25/12/12(Holiday).
Just because of their wrong commitment and misguide I am suffering a lot of mental pressure for arranging the money.
Now my questions are-
1. Why they were never asked to Mr.Depak that why he did wrong commitment? (I have my written compliant ).
2. Why (The reason) they have not booked it @Rs.200000/-when I wrote them a request letter to book?
3. How (The calculation) they are increasing it 100% in two years where the flat price is not increased more than 25%?
4. Where exactly I am wrong? What was my mistake?
5. Can consumer court help me into this matter?
Thanks & Best Regards,
Vineet Srivastava (9818483984).
It is very easy to say this and not pay builders the money for parking. But then the parking space will belong to whom? In a building of 60 flats there are hardly 10 slit parkings. After formation of society these 60 people will fight for the right to park in these 10 parking which will result in regular quarrels. Even if we decide that parking space will be used alternatively by members then the fight will be who wil using during the rainy season when parking is most needed. No body has extra money to pay for the parking but at least builders selling the parking space results in much less fights in the society.
Dear Santosh Ji, i understand your explanation but now my question is why not i can do car parking on unreserved open space within premises at first come first basis?
verbally i was confirmed by builder that if i don't have reserved parking they will not allowed to enter my car from the gate.
Hi Santosh. Vineet is making a valid point. Also, if parking spaces are limited, allocating them based on payment of money is not only unethical but also illegal. The societies instead should try and work out a system among the residents and also, the buoders should forewarn the buyers about the limited parking spaces.
Hi Runjhun, I bought a resale flat 6months back with stilt car parking. Previous owner had booked the flat in 2008 wherein it was writen in his agreement(Exclusive use of stilt car parking). Even in my Index II it is written exclusive use of stlit car parking. Revious owner was using the parking and as per the agreement the parking should be allotted to me. Now I have come across a notice pasted in the common area of the society that all the resale owners of the flat only own the flat and the parking become the property of the society. The society would allott the parking to the residents as per the waiting list. Please clarify. Thank you.
Shahzad, as we have clarified in our article, parking spaces cannot be sold and hence cannot be owned by the buyers. This implies that your society is justified in owning the Parking Space and allot it as per a system not based on monetary gratification.
Hi Runjhun.I hv bought a flat In a 15yr old bldg. The documents state that it is with one covered car park. However, it had not been claimed by the previous owner. Now we are not able to find the car park. When I contact the builder, they say contact the society and they are not helping us. Can you pls advice me.