Parking Disputes in Telangana Real Estate: Legal Standpoints and RERA Enforcement

Parking allocation has become a persistent source of disputes in apartment and commercial complexes across Telangana, arising from the unlawful sale of open or stilt parking spaces, unauthorized alterations to approved parking layouts, and developers’ continued control over common areas. Common grievances include non-transparent allotment of parking, misuse of visitor parking for commercial purposes, separate monetisation of parking slots, collection of additional charges for the same, and retention of control over common areas by developer seven after handover, despite statutory transfer obligations under the Real Estate (Regulation and Development) Act, 2016 (“RERA”)^[1].The legal framework governing parking spaces in Telangana is primarily drawn from the RERA and the Telangana Building Rules, 2012 (“Building Rules”), which prescribe mandatory parking standards and link building plan sanction and occupancy certification to compliance with these standards.

This article analyses the regulatory framework governing parking in Telangana, examines the provisions of RERA and the Building Rules, reviews key judicial decisions, and outlines practical remedies available to allottees^[2] (“Homebuyers”) and Resident Welfare Associations (“RWAs”).

RERA and Parking Areas

RERA does not permit the sale of open or stilt parking spaces as independent units. These areas are deemed to form part of the “common areas” under Section 2(n) of RERA. The model sale agreement prescribed under the Real Estate (Regulation and Development) (General) Rules, 2016 (“RERA Rules”)^[3] reinforces this position by prohibiting their separate sale and mandating such disclosure as part of the common areas in the sanctioned plans of the project.

Section2(n) of RERA defines “Common areas” to include, among other things:

·     Basements, terraces, corridors, lobbies, staircases, lifts (including the area of these).

·     Open parking areas.

·     Stilt parking spaces.

·     Any other areas meant for common use or benefit of all allottees.  

Since open and stilt parking spaces are expressly classified as common areas, they cannot be sold separately as independent real estate units. Instead, the costof such parking is typically factored into the overall price of the apartment or unit.

Applicable Building Rules

Under the Building Rules, the provision for parking is not merely a guideline but a statutory requirement that directly affects both building plan sanction and the grant of occupancy permissions. The Building Rules prescribe minimum parking standards based on the type of occupancy (residential, commercial, institutional, industrial, etc.) and the built-up area of the project.

For instance, in a residential complex, the standard norm is one car parking space and two two-wheeler parking spaces per dwelling unit, along with designated visitor parking i.e., typically amounting to 10-15% of total car parking. In addition, the Rules expressly prohibit the misuse of areas earmarked for parking, stipulating that “misuse of the area specified for parking of vehicles for any other use shall be summarily demolished/removed by the Enforcement Authority.”^[4]

Compliance with these parking requirements is scrutinized at both the building-plan approval stage and again before grant of the Occupancy Certificate (“OC”). The Greater Hyderabad Municipal Corporation (“GHMC”), Hyderabad Metropolitan Development Authority (“HMDA”), and other Urban Local Bodies (“ULBs”) assess proposed layouts for conformity with the mandatory provisions under Rule 13 of the Building Rules, which requires parking to be provided as per the prescribed standards. The OC is issued only after the competent authority conducts a thorough physical inspection, verifies that parking has been provided strictly in accordance with the sanctioned plan, with ‘parking space provision’ expressly included as an item for inspection.

Any deviation from the sanctioned building plan in respect of parking, such as reducing slots or converting approved areas, is a statutory violation under multiple enactments. The Telangana Municipalities Act, 2019 (Sections 174, 180, 181) empowers demolition, sealing, or revocation of permissions, while the GHMC Act, 1955 (Sections 452–461) authorizes refusal of utilities and levy of penal tax. The HMDA Act,2008 (Section 56) provides similar powers in the metropolitan area. At the regulatory level, the RERA (Sections11(4), 14, 17, 19) prohibits alteration of sanctioned plans or misuse of common areas like parking and enables enforcement through compliance orders and compensation. Collectively, these laws make parking norms binding obligations, not optional.

Judicial Precedents

a)            Prior to RERA: The Supreme Court of India in Nahalchand Laloochand Private Limited v. PanchaliCo-operative Housing Society Limited^[5], (“Nahalchand Case”) held that stilt and open parking spaces are part of the “common areas and facilities” under the Maharashtra Ownership Flats Act, 1963, and therefore cannot be sold separately by a developer to individual purchasers; instead, they must be handed over to the housing society or association of apartment owners for the collective use of all members. The Apex Court reasoned that such parking spaces are essential amenities appurtenant to the building, not independent saleable units, and any attempt to sell them separately is in violation of law.

b)            The Telangana Real Estate Regulatory Authority (“Authority”) held in Darbar MCOR Apartment Members v. M/s MCOR LLP Projects^[6],that the developer had reduced the size of the allotted parking spaces, created five additional slots beyond what was sanctioned, and continued to retain control over common areas even after obtaining the OC. Relying on Sections11(4)(a), 14, and 17 of the RERA, the Authority found these actions unlawful and directed the developer to adhere to the sanctioned plan, restore the original parking layout, and hand over all common areas, including parking, to the residents’ association.

Legal Remedies Available to Home Buyers

a)            RERA Complaints: Under Section 31 of the RERA, aggrieved buyers can file complaints with RERA for non-allotment of promised parking or illegal sale of common spaces by the builder.

b)            Consumer Court Actions: Under Section 35 of the Consumer Protection Act, 2019, buyers can file complaints before the District/State/National Consumer Disputes Redressal Commissions seeking compensation, refund, or penalty for misleading advertisements or for deficiency in service.

c)             Civil Remedy: Buyers may approach the civil courts by filing a suit for injunction (to restrain the builder from illegally selling or altering common areas/parking) and/or a suit for specific performance under the Specific Relief Act, 1963 to enforce the terms of the builder-buyer agreement. Additionally, damages and compensation can be claimed under the Indian Contract Act, 1872 for breach of contract.

Analysis& Conclusion

The legal framework governing parking allotments in Telangana is well established. Under RERA, open and stilt parking form part of the common areas and cannot be sold separately, while the Building Rules prescribe minimum parking standards and link both building plan sanction and the grant of OCs to compliance. These requirements operate across all urban local bodies under the Telangana Municipalities Act, 2019, and in addition are enforced within GHMC under the GHMC Act, 1955 and in the metropolitan region under the HMDA Act, 2008.Judicial precedent, most notably the Nahalchand case, has been consistently applied by the Authority and consumer forums, leading to orders for rectification of layouts, refund of unlawful parking charges, and transfer of common areas to allottees.

Compulsory disclosure of the sanctioned parking layout at the time of project registration under RERA, strict verification of parking compliance at the occupancy certification stage by GHMC, HMDA, and other ULBs, timely transfer of common areas (including parking areas) to the Residents’ Welfare Association, and clear recording of parking rights in sale agreements are critical to ensuring protection of buyer rights, transparency in the allotment of parking spaces, and conformity of the constructed project with sanctioned building plans and the governing statutory framework.

References

[1] Sections 11(4)(a), 14, and 17 of the Real Estate (Regulation and Development) Act, 2016.

[2] Section 2(d) of the Real Estate (Regulation and Development) Act, 2016.

[3] Telangana State Real Estate (Regulation and Development) Rules, 2017.

[4] Rule 13(c)(i), G.O. Ms. No. 168, dated April 07, 2012.

[5] (2010) 9 SCC 536.

[6] Order dated May 17, 2025, in Complaint No. 91 of 2024, before Telangana Real Estate Regulatory Authority.

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