Response

The Supreme Court has ruled that stilt parking spaces cannot be sold by developers. The ‘Apartment Act’ in most States specifies that car parking forms a part of the society’s common areas and hence, they are not a part of the FSI (Floor Space Index) allocated to the developer. However, if a developer proves that they have used the FSI allotted to them to construct the parking, they can sell it. A stilt floor is a partially covered parking space on the ground floor of a commercial or residential building. Its height ranges from 2.4 m to 2.7m. A stilt floor is supported by pillars with all four sides open, it usually contains a generator room, switch room, society & information room, etc. Stilts are poles, posts or pillars used to allow a structure or building to stand at a distance above the ground. In flood plains, and on beaches or unstable ground, buildings are often constructed on stilts to protect them from damage by water, waves or shifting soil or sand. According to the Indian Contract Act, an agreement is enforceable under Section 10, if it is made by competent parties. Now, since the allotment letter has all the essential constituents of a contract, it is also a legally binding document. In the Nahalchand Laloochand Pvt Ltd versus Panchali Co-operative Housing Society case in Mumbai, the Supreme Court upheld the Bombay HC order which ruled that open parking spaces cannot be sold by a builder. A ground level portion of a building consisting of a structural column and not more than 2.5 mts is called a Stilt Floor. The floor is raised above the ground level with columns and no walls around it.

Reference: Transfer Of Property ACt, 1882

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