M/s. Arun Excello Constructions LLP v. Meenakshi S.
Case: M/s. Arun Excello Constructions LLP v. Meenakshi S.
Case No.: Appeal No. 31 of 2026 & M.A. No. 95 of 2026
Forum: Tamil Nadu Real Estate Appellate Tribunal (TNREAT)
Decision: 16 September 2026
Key issue: Whether a promoter can separately charge a homebuyer for a car-parking space situated in the stilt area of a residential project.
Facts: Meenakshi S. booked Flat No. 4419 in Block No. 4 of Arun Excello's Compact Homes – Narmada project at Singaperumal Koil, Chennai. An amount of ₹2.36 lakh was separately collected towards “Covered Parking (Including GST)” under the allotment letter. The homebuyer challenged the parking charge before TNRERA.
TNRERA directed Arun Excello to refund the ₹2.36 lakh with interest. The promoter appealed before TNREAT, contending, inter alia, that it had not sold any exclusive parking space and that the amount represented costs associated with the amenities/project.
Findings of TNREAT
TNREAT dismissed the promoter's appeal and upheld the refund. The Tribunal found that:
The allotment letter separately identified ₹2.36 lakh as the charge for covered parking.
The construction agreement did not include this amount as part of the construction cost.
The parking in question was situated in the stilt area.
A stilt parking space is not a separately saleable area, and therefore the promoter could not separately sell or charge the allottee for it.
The Tribunal relied upon the Supreme Court's decision in Nahalchand Laloochand Pvt. Ltd. v. Panchali Co-operative Housing Society Ltd., concerning the legal status of stilt parking.
Ratio
A promoter cannot separately sell or charge a homebuyer for a stilt parking space, since such parking is not a saleable area. Where the documentary record establishes that a separate amount was collected towards stilt parking, the amount is liable to be refunded with interest.
Practical significance
The decision reiterates the distinction between legitimate recovery of project/amenity costs and the sale of a specific stilt parking space. Merely describing the amount as an amenity or project-related charge will not protect the promoter where the allotment documentation demonstrates that a specific amount was separately collected towards covered/stilt parking.
TNREAT also permitted Meenakshi to withdraw the ₹3.88 lakh pre-deposit made by the promoter under Section 43(5) of RERA, together with accrued interest, if any.
