SC Judgement on Stilt Parking for NL Builders

In the case of N.L. Private Limited, the Supreme Court has held that  under the provisions of the Maharashtra Ownership of Flats (Regulation of the Promotion of Construction, Sale,Management and Transfer)Act, 1963 ("MOFA"), the promoter has right only to sell a flat within the meaning of Section 2(a-1) of the said Act.  The Supreme Court has held that  'stilt parking' is not a Flat and further that it is a common area, therefore, the promoter has no right to sell the "stilt parking".

In view of the above, the persons who purchased the "stilt parking" cannot claim ownership of the said common area.  At best, they can sue the promoter for recovery of the money paid by them for purchase of the Stilt parking, as there will definitely be an indemnity clause contained in the agreement, indemnifying the purchasers in case of any defect in the title of the promoter.

It must be remembered, that the Supreme Court has also stated in the same judgment that the promoter at best can charge the cost of the stilt parking from each flat purchaser in propotion to the carper area of their respective flats.  Therefore, even now, the promoter can charge the said extra charges from those who have not purchased the stilt parking space separately, and return the difference if any to those who made separate payment towards purchase of the stilt-parking.