Can Your Builder Charge You Extra for Open, Stilt, or Podium Parking?

Understanding Car Parking Laws Under RERA: 

When buying a dream home in India, navigating the maze of total project costs can be overwhelming. Among the various line items in a cost sheet, charges for “parking space allocation” frequently trigger confusion and disputes.

Many homebuyers wonder: Is the builder legally allowed to charge a separate premium for my car parking slot?

To help you protect your consumer rights, this article breaks down the legalities of Open, Stilt, and Podium parking under the Real Estate (Regulation and Development) Act, 2016 (RERA) and landmark judicial rulings.

The Core Rule: “Common Areas” vs. “Covered Parking”

To understand what a builder can and cannot charge for, we must look at how the RERA Act separates a building’s layout into two distinct categories:

1. Common Areas: Under Section 2(n) of the RERA Act, common areas belong collectively to all allottees (the Housing Society/RWA). These spaces cannot be sold, partitioned, or charged for independently by the developer.
2. Garage / Covered Parking: RERA allows developers to sell independent enclosed spaces or structurally covered parking units, provided they are explicitly declared, numbered, and sanctioned in the initial building plans.

Let’s look at how the law applies to each specific type of parking space.

1. Open Parking Spaces

• What it is: Uncovered, open-to-sky parking slots located within the boundary walls of the housing society layout.
• The RERA Verdict: Strictly ILLEGAL to sell or charge separately.
• The Legal Stance: RERA explicitly classifies open parking as a “Common Area.” The cost of developing these open layout spaces is already factored into the per-square-foot base rate of your apartment. A builder cannot demand a separate “allocation fee,” nor can they sell a specific open slot to a buyer. Upon project completion, all open parking must be handed over to the Resident Welfare Association (RWA), which will allot spaces to residents.

2. Stilt Parking Spaces

• What it is: The partially covered parking floor constructed directly under the building’s main pillars/columns on the ground level, featuring open sides without enclosing walls.
• The RERA Verdict: Strictly ILLEGAL to sell or charge separately.
• The Legal Stance: This rule dates back to the landmark Nahalchand Laloochand Pvt. Ltd. v. Panchali Co-operative Housing Society judgment by the Supreme Court of India. The apex court ruled that stilt parking spaces do not qualify as “garages” because they lack three enclosing walls. RERA upheld this precedent. Because stilt parking is part of the building’s structural footprint, it is a shared common amenity that belongs to the society.

3. Podium Parking & Basement Parking

• What it is: Multi-level, structurally covered parking decks built either entirely underground (basement) or elevated on a platform above the ground level (podium).
• The RERA Verdict: LEGAL to sell or charge separately (Subject to State Rules).
• The Legal Stance: Unlike open or stilt spaces, podium and basement parking are structurally engineered, fully covered configurations. RERA guidelines allow builders to charge for and assign “covered parking spaces” to specific buyers.
• Note on State Jurisdictions: In major metropolitan areas like Mumbai, regulatory bodies (such as MahaRERA via Circular No. 36/2021) explicitly permit developers to sell podium, basement, and automated puzzle parking spaces. However, the developer must disclose the exact dimensions, total number, and price of these covered slots when registering the project on the RERA portal.

Quick Reference Checklist for Homebuyers

Red Flags: How to Spot Illegal Parking Demands

If you are in the process of purchasing a flat, watch out for these deceptive tactics:

• The Separate Receipt Trick: The builder includes parking costs in your total quotation but insists on issuing a separate “Parking Allotment Receipt” instead of adding it to the primary Builder-Buyer Agreement.
• Cash Demands: The sales team asks for an under-the-table cash payment to “reserve” a premium stilt or open parking slot near the elevator lobby.
• Undisclosed Allotments: The builder promises you a specific covered podium parking slot, but the slot number and dimensions are completely missing from the RERA-registered project blueprint.

What to Do If Your Rights Are Violated

If a developer pressures you into paying an unauthorized fee for open or stilt parking, you have multiple legal avenues for recourse:

1. Check the RERA Portal: Verify the project’s sanctioned plans online to see exactly how many open and covered parking spaces the builder registered.
2. Demand a Written Clause: If you are paying for an authorized podium or basement slot, ensure the specific slot number, size, and cost are legally documented inside your registered Agreement for Sale.
3. File an Official Complaint: You can file a formal grievance online with your respective state’s RERA Authority or approach the Consumer Disputes Redressal Forum for unfair trade practices.

Parking spaces are a premium commodity in urban real estate, but convenience shouldn’t come at the cost of exploitation. While you must expect to pay a legitimate price for a structurally covered podium or basement slot, you should firmly reject any separate financial demands for open or stilt spaces. Always review your RERA documents thoroughly before signing on the dotted line.