The Maharashtra State Commission has ruled that builder-made parking space allotments are illegal, citing the Supreme Court's ruling in Nahalchand Laloochand Pvt Ltd vs Panchali Co-operative Housing Society Ltd. According to the commission's order delivered on May 12, 2026, parking spaces cannot be sold or permanently appropriated as they are part of common areas. The ruling establishes that housing societies must follow proper allocation procedures through draws rather than allowing builders to make unilateral decisions. The commission did not agree with the society's stand that the complaint was time-barred, holding that allotment of parking space gives rise to a continuing cause of action.
The case involved a couple who purchased two flats and were given possession on May 6, 2000. They requested the society to allot one car parking space according to bye-laws but were forced to park their vehicle on the road outside the society. As reported by Business Standard, the couple pointed out the Supreme Court's ruling while the society showed reluctance to hold draws, arguing that majority member views could not override settled law.
The Maharashtra State Commission observed that the complaint was maintainable as housing society members paying maintenance are consumers of services. According to the commission's order, the society's decisions validating builder allotments were illegal as they perpetuated allocations made in direct contravention of Supreme Court rulings. The commission concluded that 'deficiency in service' was established as the society failed to perform duties according to bye-laws and violated settled law.
The commission directed the society to cancel all car parking allocations made by the builder and ordered fresh allotments within four months in accordance with bye-laws. As reported by Business Standard, the commission ordered the society to pay ₹1 lakh as compensation for mental agony and hardship and ₹25,000 towards litigation costs. The commission granted two months for monetary payment with 9% interest on delayed payments. The ruling applies to all builder allotments whether by sale or allotment, establishing a comprehensive prohibition on such practices.
