Parking areas cannot be sold as flats or garages: SC - Indian Real Estate Forum

SmallFish · 02-09-10

The Supreme Court has ruled that builders or promoters cannot sell parking areas as independent units or flats because they are to be extended as "common areas and facilities" for the owners. A bench of Justices R.M. Lodha and A.K. Patnaik in a judgment rejected the argument of a real estate development company that they were entitled to sell garages/stilt parking areas as separate flats to owners who intend to use it as parking facilities.
"If a promoter does not fully disclose the common areas and facilities, he does so at his own peril. Stilt parking spaces would not cease to be part of common areas and facilities merely because the promoter has not described the same as such in the advertisement and agreement with the flat purchaser.
"The promoter has no right to sell any portion of such building which is not 'flat' within the meaning of Section 2(a-1) and the entire land and building has to be conveyed to the organisation. The only right remains with the promoter is to sell unsold flats.

"It is, thus, clear that the promoter has no right to sell 'stilt parking spaces' as these are neither 'flat' nor appurtenant or attachment to a 'flat', Justice Lodha, writing the judgment, said.

The apex court passed the judgment while dismissing the appeal of the promoter, Nahalchand Laloochand Pvt Ltd, challenging the Bombay High Court ruling that under the MOFA (Maharashtra Ownership Flats Act), a builder cannot sell parking slots in the stilt area as independent flats or a garage

=========
In HT today..
http://www.hindustantimes.com/Parkin...e1-594949.aspx

SmallFish · 02-09-10

The Supreme Court on Wednesday made it clear that promoters had no right to sell open spaces and stilt areas in their residential complexes. This comes as good news for property buyers, but there are riders attached.

The Maharashtra Ownership of Flats Act (MOFA) stipulates that parking space cannot be sold. However, the developers have been maintaining that they are not selling space but allotting parking space to buyers as it been allowed under the act, said Ramesh Prabhu, chairman of Maharashtra societies welfare association.

“But this allotment actually means flat purchasers have to pay for the parking space. They have to fork out cash for the purpose. This is nothing but a sale promoting black money,” Prabhu said, adding the apex court order would make no sense unless buyers put their foot down and refuse to pay for the parking space.

“Problems would arise however, if a society decides to implement the order and realigns the parking space,’’ said Prabhu.

According to housing activists, some buyers in Pune have finally started asking for what they should be getting free from the builders, like parking slots. Some have taken recourse to legal action as well.

Sunil Mantri, president of the Maharashtra chamber of housing industry, and Vimal Shah, managing director of Ackruti City, refused to comment as they were yet to study the apex court order. According to the Development Control Rules, the parking area and common amenities are incorporated in the cost of the flat, which is why the corporation does not charge an extra tax for parking or any of the common amenities

=====
In DNA today...
http://www.dnaindia.com/mumbai/repor...erdict_1432333

Pradyot1315sqf · 02-09-10

Be ready for high basic sealing price and free parking

pcpune · 02-09-10

Some builders and most builders in Pune are smart enough to ask people for Parking money in CASH. This is the reason I was saying earlier - the cost of owning a property today is as high as 30-40%, doesnt really make sense when mutual funds can be owned at paltry 2%.

It is like the "ON" you pay on the cars, if you are desperate - but my question is - WHY ARE PEOPLE SO DESPERATE ---

they are ready to pay cash as well ?

Phew !

m_square · 02-09-10

ackruti countrywoods are charging parking in the booking amount itself..

In the agreement, the parking is leased (not sold) to the owner for 99 years for Re 1 ..

realacres · 02-09-10

Quote:

Originally Posted by m_square

ackruti countrywoods are charging parking in the booking amount itself..

In the agreement, the parking is leased (not sold) to the owner for 99 years for Re 1 ..

In that case, you will never be able to make a co-op soc coz once soc is formed, all the land belongs to the society. Here if the parking is leased, I think that even the flat will be a leased one

. One can't sold flats & lease parking. Man, I feel something fishy here. Is the builder going to take away the parking like Hanuman who lifted the mountain?

*m^2, now your signature is eat, pray & love. Seems you are a big fan-tower AC of Julia Roberts

.

lazybone007 · 02-09-10

High court/ supreme court rulings have no meaning. Builders will always find a loophole in the law. You will end up paying for parking and it will be charged under some other head like 'infrastructure', 'other charges', 'development charges' etc. Nothing comes free in this world. No use fighting with builder regarding this. Its a case of take it or leave it.

pcpune · 02-09-10

, Well most people accept this indifference attitude. I actually have no issues, if builders include this in the per sq feet rate they are selling, since then it is the cost, and not the "cost of ownership"/transaction charges.

I believe Jitu_Sir, has now only 3 heads, -- price per sw feet+Society Maint Charges + Reg./Stamp Duty.

Now, I would just like to have only 2 charges - the price per sq feet+ registration/Stamp Duty.

The society/maint must be under a society escrow account and not the builder account.

Also, 10-20% of the total amount must be held back by the banks/intermediating agency to enable the builders to transfer conveyance+obtain all permissions/cert+provide all promised amenities.

This rules must be followed strictly, and I am sure the RE will become much more transparent.

m_square · 03-09-10

Quote:

Originally Posted by realacres

In that case, you will never be able to make a co-op soc coz once soc is formed, all the land belongs to the society. Here if the parking is leased, I think that even the flat will be a leased one. One can't sold flats & lease parking. Man, I feel something fishy here. Is the builder going to take away the parking like Hanuman who lifted the mountain?

dont know abt lease and other stuff.. bas bhagwaan ka naam lekar kar diya booking .. Jai Shri Ram

Quote:

Originally Posted by realacres

*m^2, now your signature is eat, pray & love. Seems you are a big fan-tower AC of Julia Roberts

.

not her fan... the words just describe my attitude towards life

u heard Bon Jovi's single.. " I ain't gonna live forevaaa.. its my lyyyyyffff .. Ohh man i am high today

SmallFish · 03-09-10

In my society, the builder has mentioned 100 sq ft of alloted covered car-park in the agreement. This was a few years ago. I think this may be the case in many other societies as well.
What happens to these allotments? I dont believe anyone is going to allow the society committee to modify / end such allotments. This will lead to more fights within the society (as if we do not have enough already)
As it is, no one is interested in joining the society managing committees, these additional headaches will drive them away further...

02-09-10	#1
SmallFish New Member Join Date: Jul 2010 Posts: 29 My Mood: Thanks: 0 Thanked 0 Times in 0 Posts Rep Power: 1	Parking areas cannot be sold as flats or garages: SC The Supreme Court has ruled that builders or promoters cannot sell parking areas as independent units or flats because they are to be extended as "common areas and facilities" for the owners. A bench of Justices R.M. Lodha and A.K. Patnaik in a judgment rejected the argument of a real estate development company that they were entitled to sell garages/stilt parking areas as separate flats to owners who intend to use it as parking facilities. "If a promoter does not fully disclose the common areas and facilities, he does so at his own peril. Stilt parking spaces would not cease to be part of common areas and facilities merely because the promoter has not described the same as such in the advertisement and agreement with the flat purchaser. "The promoter has no right to sell any portion of such building which is not 'flat' within the meaning of Section 2(a-1) and the entire land and building has to be conveyed to the organisation. The only right remains with the promoter is to sell unsold flats. "It is, thus, clear that the promoter has no right to sell 'stilt parking spaces' as these are neither 'flat' nor appurtenant or attachment to a 'flat', Justice Lodha, writing the judgment, said. The apex court passed the judgment while dismissing the appeal of the promoter, Nahalchand Laloochand Pvt Ltd, challenging the Bombay High Court ruling that under the MOFA (Maharashtra Ownership Flats Act), a builder cannot sell parking slots in the stilt area as independent flats or a garage ========= In HT today.. http://www.hindustantimes.com/Parkin...e1-594949.aspx

02-09-10	#2
SmallFish New Member Join Date: Jul 2010 Posts: 29 My Mood: Thanks: 0 Thanked 0 Times in 0 Posts Rep Power: 1	Impact? The Supreme Court on Wednesday made it clear that promoters had no right to sell open spaces and stilt areas in their residential complexes. This comes as good news for property buyers, but there are riders attached. The Maharashtra Ownership of Flats Act (MOFA) stipulates that parking space cannot be sold. However, the developers have been maintaining that they are not selling space but allotting parking space to buyers as it been allowed under the act, said Ramesh Prabhu, chairman of Maharashtra societies welfare association. “But this allotment actually means flat purchasers have to pay for the parking space. They have to fork out cash for the purpose. This is nothing but a sale promoting black money,” Prabhu said, adding the apex court order would make no sense unless buyers put their foot down and refuse to pay for the parking space. “Problems would arise however, if a society decides to implement the order and realigns the parking space,’’ said Prabhu. According to housing activists, some buyers in Pune have finally started asking for what they should be getting free from the builders, like parking slots. Some have taken recourse to legal action as well. Sunil Mantri, president of the Maharashtra chamber of housing industry, and Vimal Shah, managing director of Ackruti City, refused to comment as they were yet to study the apex court order. According to the Development Control Rules, the parking area and common amenities are incorporated in the cost of the flat, which is why the corporation does not charge an extra tax for parking or any of the common amenities ===== In DNA today... http://www.dnaindia.com/mumbai/repor...erdict_1432333

02-09-10	#5
m_square Member Join Date: Jul 2009 Posts: 461 My Mood: Thanks: 0 Thanked 0 Times in 0 Posts Rep Power: 1	ackruti countrywoods are charging parking in the booking amount itself.. In the agreement, the parking is leased (not sold) to the owner for 99 years for Re 1 .. __________________ Eat, Pray and Love

03-09-10	#10
SmallFish New Member Join Date: Jul 2010 Posts: 29 My Mood: Thanks: 0 Thanked 0 Times in 0 Posts Rep Power: 1	What about existing allotments? In my society, the builder has mentioned 100 sq ft of alloted covered car-park in the agreement. This was a few years ago. I think this may be the case in many other societies as well. What happens to these allotments? I dont believe anyone is going to allow the society committee to modify / end such allotments. This will lead to more fights within the society (as if we do not have enough already) As it is, no one is interested in joining the society managing committees, these additional headaches will drive them away further...

Thread Tools	Search this Thread
Show Printable Version Email this Page	Search this Thread: Advanced Search

02-09-10	#3
Pradyot1315sqf Member Join Date: Aug 2010 Posts: 280 My Mood: Thanks: 0 Thanked 5 Times in 5 Posts Rep Power: 1	Be ready for high basic sealing price and free parking

02-09-10	#4
pcpune Veteran Member Join Date: Nov 2009 Posts: 1,295 My Mood: Thanks: 0 Thanked 1 Time in 1 Post Rep Power: 1	Some builders and most builders in Pune are smart enough to ask people for Parking money in CASH. This is the reason I was saying earlier - the cost of owning a property today is as high as 30-40%, doesnt really make sense when mutual funds can be owned at paltry 2%. It is like the "ON" you pay on the cars, if you are desperate - but my question is - WHY ARE PEOPLE SO DESPERATE --- they are ready to pay cash as well ? Phew !

02-09-10	#7
lazybone007 Member Join Date: Oct 2009 Posts: 424 Thanks: 1 Thanked 4 Times in 3 Posts Rep Power: 1	High court/ supreme court rulings have no meaning. Builders will always find a loophole in the law. You will end up paying for parking and it will be charged under some other head like 'infrastructure', 'other charges', 'development charges' etc. Nothing comes free in this world. No use fighting with builder regarding this. Its a case of take it or leave it.

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Open Car Parking Vs Coverd Car Parking	tambeh	Mumbai	6	03-06-11 01:14 PM
MF declares NAV daily, why dont builders declare flats sold out	deepak.patil	Pune	1	13-07-10 03:46 AM
Sold out, or merely held back?	amolk09	Pune	19	05-04-10 12:49 PM
Older/resale flats in prime areas	ForumQuizzer	Pune	7	18-12-09 05:22 PM
New Apartment in T. Nagar sold for 7k per sft	mogan	Chennai	17	03-11-09 03:25 PM