In India’s rapidly urbanising landscape, whether to pay extra for parking space has become a significant consideration for property buyers and residents. With increasing vehicle ownership and limited urban space, parking has evolved from a mere convenience to a critical necessity. This article delves into the multifaceted aspects of paying extra for parking spaces in India, examining legal frameworks, types of parking, associated costs, and practical considerations to guide potential buyers and residents in making informed decisions.
Understanding parking spaces in India
Types of parking spaces
In residential complexes across India, parking spaces are typically categorised into three main types:
Angle parking
- Vehicles are parked at an angle to the curb, typically 45 or 60 degrees.
- This layout allows for easy entry and exit while maximising space.
- Commonly found in open parking lots where efficient use of space is needed.
Perpendicular parking
- Cars are parked at a 90-degree angle to the curb or parking bay.
- This is one of the most space-efficient layouts in basements, parking garages, and small residential complexes.
- Drivers must ensure their tyres are straight when parking.
Parallel parking
- Vehicles are parked parallel to the curb, with one car in front and another behind.
- This type of parking is ideal for narrow driveways or roadside parking in housing complexes.
- It requires more skill compared to other layouts, as drivers must maneuver between two cars.
Tower parking (Automated parking system)
- A fully automatic, multi-level system where vehicles are lifted and parked in designated slots.
- Ideal for urban high-rise apartments where land is limited.
- Requires a parking lift operator for smooth functioning.
Laws related to parking spaces in india
Under the Real Estate (Regulation and Development) Act (RERA), 2016, closed garage spaces can be legally sold as independent units. However, stilt and open parking spaces are classified as common areas, similar to staircases, lifts, and gardens, and cannot be sold separately. Charging buyers extra for such parking is considered unlawful.
Once a housing society is registered, the municipal corporation grants the Occupation Certificate (OC), and the builder hands over control of all common spaces, including parking, to the society. At this point, parking spaces become the society’s property.
Supreme court ruling on parking sales
In the landmark 2010 Supreme Court case (Nahalchand Laloochand Pvt Ltd vs. Panchali Cooperative Housing Society), the court upheld the Bombay High Court’s decision that builders cannot sell stilt parking as independent units. Initially, developers attempted to sell parking spaces to non-residents, leading to objections from society members. The court ruled in favor of the residents, reinforcing that stilt and open parking belong to the society and must be allocated fairly.
Other important court rulings on parking
Beyond the 2010 Supreme Court judgment, later cases have further clarified parking rights. In Delhi High Court’s 2016 ruling, it was held that every flat owner is entitled to at least one parking space, and societies cannot deny residents parking within designated areas. Similarly, the Bombay High Court has issued directions reinforcing that visitor parking cannot be sold or permanently allotted, as it is part of the common area meant for collective use. These rulings strengthen the position of residents and prevent both developers and societies from exploiting parking as a revenue stream.
Parking regulations as per model building bye-laws
According to the Ministry of Housing and Urban Affairs’ Model Building Bye-Laws (2016):
- Two Equivalent Car Spaces (ECS) must be provided for every 100 square meters of residential floor space.
- This roughly translates to one parking space per 3 BHK and two spaces per 4 BHK apartment.
- Each state’s development control regulations mandate that builders provide parking to buyers—though specific requirements vary by state.
State-specific deviations in parking rules
While the Model Building Bye-Laws (2016) provide broad guidance, each state frames its own development control regulations for parking. For instance, the Mumbai Development Control Regulations (DCR) mandate at least one parking slot per flat, irrespective of the unit size, whereas Bengaluru’s by-laws tie the requirement to carpet area, often resulting in fewer slots in affordable housing projects. Delhi’s Master Plan prescribes a mix of residential and community parking norms, sometimes allowing shared or community parking instead of individual allotments. These variations mean buyers must check the specific state or city regulations applicable to their project rather than relying only on national guidelines.
Apartment acts and society rules on parking
Once the society takes charge, it can regulate parking allocation and fees through General Body discussions. Parking charges vary based on vehicle type and availability. Some state-specific laws, such as the Maharashtra Ownership Flats Act and the Delhi Apartment Ownership Act, allow societies to levy parking fees. Still, they cannot sell parking spaces as private property.
Parking disputes and resolution mechanisms
Even with clear laws and court rulings, parking disputes remain one of the most common flashpoints in housing societies. Residents should know the proper channels for resolution to avoid prolonged conflict.
- Internal society mechanisms: The first step is usually to raise the issue in the society’s General Body Meeting (GBM). Parking allocation and charges are often governed by resolutions passed in these meetings, and collective discussion can lead to reallocation, rotation, or revision of fees in line with legal guidelines.
- Registrar of Cooperative Societies: If the society enforces unfair parking practices—such as charging illegally for open or stilt parking, or denying parking despite eligibility—residents can file a complaint with the Registrar. The Registrar has the authority to intervene in cooperative housing disputes and direct corrective measures.
- RERA authorities: For issues linked to the builder—such as charging unlawfully for stilt or open parking during the sale stage—residents can approach the state Real Estate Regulatory Authority (RERA). RERA can penalise developers for non-compliance with the Real Estate (Regulation and Development) Act, 2016.
- Consumer forums and housing tribunals: If residents face financial loss due to arbitrary parking charges, they can seek redress through consumer forums or housing tribunals. These platforms provide a legal route to challenge societies or developers for unfair trade practices and deficiency in service.
By escalating disputes through these channels in a structured way—first within the society, then to regulators, and finally through legal forums—residents can safeguard their rights and ensure fair treatment in parking allocations.
Ownership versus user rights in parking
It is important to distinguish between the ownership of a parking space and the right to use it. Under housing laws, parking areas such as stilt or open spaces are classified as common property and cannot be sold or transferred as independent assets. What a resident actually receives is a right to use the space, which the society can regulate, rotate, or even reallocate through general body decisions. Even when a buyer pays for parking at the time of purchase, the payment is typically treated as a contribution toward construction or development—not ownership of the parking slot itself. Recognising this difference prevents disputes where residents assume they “own” a spot, when legally, they only enjoy usage rights under society rules.
Illegal sale of parking spaces
The Supreme Court reaffirmed in 2010 that developers cannot sell parking spaces separately, including stilt and garage parking. Parking is a common amenity, and once the society is formed, it can allocate spaces fairly.
The Delhi High Court also ruled in January 2016 that each unit is entitled to one parking spot, and parking should be restricted to designated areas only—not in other common areas.
Financial implications of parking spaces
Costs associated with parking spaces
The cost of parking spaces varies based on several factors, including location, type of parking, and developer policies:
- Covered parking charges: Developers may charge substantial amounts, ranging from ₹2 lakh to ₹5 lakh, for covered parking spaces. These charges are sometimes included in the overall property cost or levied separately.
- Maintenance charges: Parking areas contribute to the everyday maintenance expenses of a housing society. Residents may be required to pay additional monthly or annual fees for the upkeep of parking facilities.
Hidden costs and considerations
Beyond the initial purchase price, several hidden costs may be associated with parking spaces:
- Premium location charges (PLC): Parking spaces near elevators or exits may attract additional premiums.
- Floor rise charges: In multi-level parking structures, charges may vary depending on the floor level, with more accessible levels commanding higher prices.
- Additional vehicle charges: Owning multiple vehicles may necessitate the purchase of extra parking spaces, each incurring separate costs.
Practical considerations for buyers
Assessing personal needs
Before deciding to pay extra for a parking space, consider the following:
- Vehicle ownership: Evaluate the number of vehicles you own or plan to own shortly.
- Usage patterns: Consider how frequently you use your vehicle and the convenience a dedicated parking space would offer.
- Family requirements: Account for the driving needs of other family members and potential future drivers.
Evaluating property-specific factors
When assessing a property, take into account:
- Availability of parking: Determine the number of parking spaces available relative to the number of units in the complex.
- Security features: Check for security measures such as surveillance cameras, gated access, and adequate lighting in parking areas.
- Accessibility: Consider the proximity of the parking space to your residence and ease of access.
Legal due diligence
Ensure compliance with legal norms:
- Documentation: Verify that the sale agreement specifies the allocation and ownership of the parking space.
- Builder credibility: Research the developer’s history to ensure adherence to legal provisions regarding parking spaces.
Can a society charge extra for parking?
Housing societies cannot charge extra for a single designated parking space with an apartment, as parking is considered a common facility under housing laws. However, if a resident owns multiple vehicles, the society has the right to levy additional parking fees to ensure fair allocation of limited parking spaces. These charges vary based on society rules, available parking slots, and the type of vehicle. Residents should review their society’s bylaws and ensure any parking charges comply with legal guidelines before making payments.
Tenant rights regarding parking charges
Housing societies cannot levy separate parking charges on tenants if the landlord has already been allotted a designated parking space. In such cases, the society’s obligation is to the flat owner, and any arrangement regarding parking charges for tenants must be mutually agreed upon in the rental agreement. If a society demands extra payment directly from a tenant, the tenant can refuse and report the issue to the Registrar of Cooperative Societies or seek resolution through a consumer forum or legal platform like Kaanoon. Clear communication with the landlord and properly worded rental clauses are essential to prevent such conflicts.
Parking rights for tenants versus landlords
Parking often becomes a grey area in rental arrangements, as society rules, landlord agreements, and tenancy laws intersect. By law, societies cannot discriminate between flat owners and tenants when it comes to usage rights. If a landlord is entitled to one parking slot, the tenant occupying that flat enjoys the same right of use during the tenancy period. The society cannot withhold parking access merely because the resident is a tenant.
However, conflicts often arise when landlords seek to charge tenants separately for parking, even though parking fees have already been included in the society’s maintenance or the landlord’s dues. In such cases, tenants should clarify the arrangement in the rental agreement—stating explicitly whether parking is part of the rent or subject to additional payment.
If a society tries to impose direct charges on tenants despite the landlord already having an allotted space, tenants can refuse and request that the issue be settled between the society and the owner. Disputes may be escalated first through the housing society’s General Body Meeting, and if unresolved, to the Registrar of Cooperative Societies or even a consumer forum.
Clear clauses in the lease agreement and transparent communication between landlord, tenant, and society help prevent these disputes from escalating.
Parking challenges with multiple vehicles
In high-density urban societies, many families today own two or more cars, while most housing societies are designed with a one-slot-per-flat rule. This imbalance often creates disputes when demand exceeds supply. To address this, Resident Welfare Associations (RWAs) adopt different approaches—some levy steep additional charges for extra cars, others conduct lotteries or auctions to allocate limited spaces, and a few rotate slots annually to ensure fairness. Buyers with multiple vehicles should be aware of these practices in advance, as additional parking can become a recurring expense or even a source of friction within the society.
Does GST apply to society-charged parking fees?
Yes, in certain cases, housing societies may need to charge Goods and Services Tax (GST) on parking fees collected from residents. If a society’s total annual collection from members—across maintenance, sinking fund, parking, etc.—exceeds ₹20 lakh, it is required to register under GST.
Once registered, any separate charges levied for parking may attract 18% GST, unless the parking fee is embedded within the overall maintenance charge (which is exempt up to ₹7,500 per member per month). If the parking fee is collected over and above this threshold or billed separately, GST liability may arise.
Societies must consult a chartered accountant or tax advisor to ensure correct treatment and avoid penalties for non-compliance.
EV charging in society parking: Can you install it?
As electric vehicles (EVs) become more common, housing societies are increasingly facing questions about the installation of charging infrastructure. While EV charging is essential for owners, it also raises concerns related to safety, power load, and use of common areas.
If you own a flat and have an allotted parking space, you must typically take written permission from the society’s managing committee before installing a private EV charger. Installation without formal approval, especially in common areas like stilt parking or basements, can lead to disputes.
RWAs should create clear guidelines aligned with the local electricity board’s norms, fire safety standards, and wiring load capacity. Some societies have begun setting up shared EV charging stations in visitor or common parking areas to ensure fair access and prevent overcrowding of individual meters or unsafe modifications.
Buyers or tenants interested in EV use should check if the society already supports EV infrastructure or plans to develop it in the near future.
EV charging and fire safety compliance
While installing EV chargers in housing societies is becoming increasingly common, it is not just a matter of convenience—it also raises serious safety and regulatory concerns. According to the National Building Code (NBC) and state electricity board guidelines, any new EV charging point must comply with fire safety standards, load capacity approvals, and proper earthing requirements. Societies are legally accountable if a fire or electrical accident occurs due to faulty wiring or unauthorised connections in common areas like stilt or basement parking.
Before granting permission, RWAs should seek clearances from the local DISCOM (electricity distribution company), ensure that the building’s wiring can handle the additional load, and update fire safety audits accordingly. Residents planning private chargers should also get their installations inspected and certified by licensed electricians. Ignoring these requirements can expose both the society and individual owners to liability, including denial of insurance claims in case of fire accidents.
Visitor parking regulations
Visitor parking in housing societies is often a gray area, but general guidelines do exist. Most societies set aside specific parking areas for visitors, especially in larger gated communities. As per cooperative housing norms, societies cannot impose excessive or arbitrary charges for visitor parking. If a society chooses to charge visitors, it must be mentioned in its registered bylaws and the charges must be nominal, reasonable, and applied uniformly to all residents’ guests. Denial of visitor parking access, especially when space exists, can be challenged through the Registrar of Societies or RWAs (Resident Welfare Associations).
Housing.com POV
Deciding whether to pay extra for a parking space in India involves carefully evaluating legal guidelines, financial implications, and personal requirements. While having a dedicated parking space offers convenience and security, ensuring that such transactions comply with legal standards and are transparently documented is essential. Prospective buyers and residents should conduct thorough due diligence, consult legal experts if necessary, and make informed decisions that align with their present and future needs.
FAQs
As per the Supreme Court ruling (2010), stilt parking is part of the common area and cannot be sold as an independent unit.
No, under RERA 2016, open parking is classified as a common area and cannot be separately sold to buyers.
Yes, closed garage spaces can be sold separately as they are considered independent property units under RERA.
Prices may vary due to Premium Location Charges (PLC) for spots near elevators or exits, as well as floor rise charges in multi-level parking structures.
Society can reallocate parking spaces based on collective decisions or maintenance needs.
Yes, residents often pay additional monthly or annual fees for the upkeep and security of parking facilities.
It depends on availability and society rules—some allow additional purchases, while others allocate based on need.
Verify legal compliance in the sale agreement, check security features, and confirm allocation policies with the builder or society.
Yes, GST may apply if the parking space is sold separately and not included in the overall property price.
Yes, common disputes include unauthorised parking, allocation issues, and resale of parking spots without society's approval. Is it legal for a builder to sell stilt parking separately?
Can open parking spaces be sold by developers?
Are closed garage parking spaces legally sellable?
Why do parking space prices vary within the same building?
Can a housing society change parking allocations after purchase?
Are parking spaces included in property maintenance charges?
Can I buy extra parking spaces for multiple vehicles?
What should I check before paying extra for a parking space?
Do builders charge GST on parking space purchases?
Can parking disputes arise in a housing society?
