Will flat prices go up in Maharashtra after Supreme Court verdict?

The Supreme Court on Wednesday made it clear that promoters had no right to sell open spaces and stilt areas in their residential complexes. This comes as good news for property buyers, but there are riders attached.

The Maharashtra Ownership of Flats Act (MOFA) stipulates that parking space cannot be sold. However, the developers have been maintaining that they are not selling space but allotting parking space to buyers as it been allowed under the act, said Ramesh Prabhu, chairman of Maharashtra societies welfare association.

“But this allotment actually means flat purchasers have to pay for the parking space. They have to fork out cash for the purpose. This is nothing but a sale promoting black money,” Prabhu said, adding the apex court order would make no sense unless buyers put their foot down and refuse to pay for the parking space.

“Problems would arise however, if a society decides to implement the order and realigns the parking space,’’ said Prabhu.

According to housing activists, some buyers in Pune have finally started asking for what they should be getting free from the builders, like parking slots. Some have taken recourse to legal action as well.

Sunil Mantri, president of the Maharashtra chamber of housing industry, and Vimal Shah, managing director of Ackruti City, refused to comment as they were yet to study the apex court order.
According to the Development Control Rules, the parking area and common amenities are incorporated in the cost of the flat, which is why the corporation does not charge an extra tax for parking or any of the common amenities.