Stilt Parking Is Not Saleable Area; Promoter Cannot Separately Charge Homebuyer For Stilt Parking: TNREAT Upholds ₹2.36 Lakh Refund Against Arun Excello

 

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:

1. The allotment letter separately identified ₹2.36 lakh as the charge for covered parking.

2. The construction agreement did not include this amount as part of the construction cost.

3. The parking in question was situated in the stilt area.

4. 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. 

Supreme Court - Stand alone “Garage” as an independent unit by itself is not a ''Flat”

 In the Matter of Nahalchand Laloochand P.Ltd vs Panchali Co-Op.Hng.Sty.Ltd CIVIL APPEAL NO. 2544 OF 2010. Decided on 31.08.2010 Before Supreme court of india

it was also held that Stand alone “Garage” or in other words “Garage” as an independent unit by itself is not a ''Flat” .

Car parking space in open areas or stilt portions are not saleable along with the unit because they are "common areas".

 In the Matter of Yogesh Dixit vs. Manikcand Vasudha Developers (Sai Eshanya) Complaint no.CC005000000023018  decided on 03.10.2019 before Maharashtra Real Estate Regulatory Authority

MahaRERA, while dealing with the issue of car parking, relied on the judgment of the Hon’ble Supreme Court of India in the matter of Nahalchand Laloochand Private Limited vs. Panchali Co-operative Housing Society Limited. The Hon’ble Supreme Court held that under MOFA, stilt area cannot be treated as a garage and that parking areas (open to sky or stilted portion) cannot be excluded from common area and facilities under MOFA.

Accordingly, MahaRERA was of the view that the parking space in open parking area or stilt portion are not saleable along with the unit because they are "common areas".

MahaRERA further observed that the common areas are to be transferred to the society of the allottees by the developer and therefore the society vis-a-vis its members have the right to use each and every part of the common area including the open or stilted car parking space. The developer has no right to sell the stilt parking space as its control is with the society / association of the allottees.

Open Car Parking can not be Sold, Open Car Parking is for all the residents

 In the Matter of Sanjeev Dharkar V/s M/s. Arkade Realty Complaint number CC006000000001135 The Maharashtra Real Estate Regulatory Authority Ruled the Followings

The complainant, who is a resident in a completed building in the registered project, has filed this complaint seeking directions of Maha RERA to the respondent to allow him to park his vehicle inside the compound wall of the building. The Complainant has further alleged that the Respondent is selling open car parking by collecting in cash without any documentation.

 Maha RERA  in its order observed on the facts mentioned above, and directed the Respondent to allow parking of Complainant’s vehicle in the premises, as is being done for other allottees. As per the Act, Rules and Regulations, the respondent cannot sell open parking space, which has to be handed over to the legal entity of the allottees when it is formed.

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