Developers Find a Way Around SC Ruling on Parking Spaces

Published: April 25, 2011

A Supreme Court ruling in 2010 may have prohibited developers from selling parking areas as independent units to flat buyers ‘ but developers seem to have found a way around it.

Developers are now offering car parking charges as part of the sale agreement value . This trend was noticed during the recently concluded property fair organized by the Maharashtra Chamber of Housing Industry wherein marketing representatives of some well-known developers informed visitors of this option . Property experts say that such a method is being adopted to pacify prospective buyers who might be shocked by thehighcar parking charges quoted by developers.

Car parking and other charges put together work out to Rs 5 lakh to Rs 10 lakh on an average . But since it was not partof the agreement value ‘ the high parking charges acted as a deterrent for buyers ‘” said a property analyst.

A well-known developer said ‘ “It was either this (making parking charges a part of the agreement ) or quoting a lump sum rate to the buyer . Moreover ‘ it does not strain our pockets if we then have to give a 5-10 % discount to buyers as we have recovered our costs.” Developers say that it is only logical that since builders incur costs for building stilt’basementor podium parking ‘ they would try to recover the cost.

Furthermore ‘ said a senior MCHI official ‘ the apex court judgment makes it clear that if the promoter discloses common areas in the sale agreement ‘ he will be able to recover the cost of construction of parking ‘whichis included in common areas . “That’s what we are doing ‘” he said.

The apex court had rejected a real estate company’s argument that developers are entitled to sell garages /stilt parking areas as separate flats to buyers.

Currently ‘ parking area in a building is free of floor space index . While stilt parking in Kandivlicould gofor Rs 5-10 lakh ‘ open parking in buildings in Nepean Sea Road go for over Rs 1 crore.

Source: The Economic Times

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