TNREAT Upholds ₹2.36 Lakh Refund Against Arun Excello, Reiterates Promoter Cannot Sell Stilt Parking
The Tamil Nadu Real Estate Appellate Tribunal (TNREAT) on 16 September reiterated that a promoter cannot sell or separately charge for a reserved car parking space in the stilt area of a residential building.
A Bench comprising Chairperson Justice M. Duraiswamy and Judicial Member K. Babu upheld Tamil Nadu Real Estate Regulatory Authority's (TNRERA) direction requiring Arun Excello Constructions LLP to refund Rs. 2.36 lakh collected from homebuyer Meenakshi S. towards covered parking in its “Compact Homes – Narmada” project. The Tribunal observed:
“As per the aforesaid judgment, stilt parking space could not be sold as it is not a saleable area and the appellant does not have any right to sell the car parking in the stilt area.”
Meenakshi had booked Flat No. 4419 in Block No. 4 of the “Compact Homes – Narmada” project at Singaperumal Koil, Chennai, on 3 October 2017. The flat had a carpet area of 438 sq. ft. and a super built-up area of 715 sq. ft. The sale deed and construction agreement were executed on 28 May 2018.
Meenakshi alleged that Arun Excello had collected Rs. 2.36 lakh towards car parking even though the parking space was located in the stilt area. She approached TNRERA seeking, among other reliefs, refund of the parking charge, GST/Input Tax Credit and an amount allegedly collected towards excess area.
TNRERA rejected her claims relating to GST and excess area but allowed the parking claim and directed Arun Excello to refund Rs. 2.36 lakh with interest. Arun Excello challenged the parking refund before TNREAT under Section 44 of the Real Estate (Regulation and Development) Act, 2016.
The promoter argued that it had not sold any exclusive parking space and that the flat price included the amenities provided by it. It contended that covered parking in the stilt area was not mandatory, that it was entitled to regulate its use and recover proportionate costs, and that neither the construction agreement nor the sale deed specifically recorded collection of Rs. 2.36 lakh towards parking.
The Tribunal, however, found documentary evidence showing that the parking amount had been separately collected. The allotment letter dated 3 October 2017 recorded the project cost as Rs. 22.80 lakh and separately listed “Covered Parking (Including GST)” at Rs. 2.36 lakh, taking the total cost to Rs. 25.16 lakh.
The Bench also noted that Clause 2(a) of the construction agreement fixed the construction cost at Rs. 22.85 lakh and did not include any covered parking charge. It relied on the Supreme Court's decision in Nahalchand Laloochand Pvt. Ltd. v. Panchali Co-operative Housing Society Ltd., and held that the separate collection of Rs. 2.36 lakh for stilt parking was contrary to law. It observed:
“In such circumstances, as per the Allotment Letter dated 03.10.2017, the appellant having received an amount of Rs.2,36,000/- towards covered parking and allotting the parking space in the stilt area is not in accordance with law and the TNRERA had rightly directed the appellant to refund the said amount with interest.”
Accordingly, TNREAT dismissed Arun Excello's appeal on 16 September 2026 and closed the connected application. It also permitted Meenakshi to withdraw the Rs. 3.88 lakh pre-deposit made by the promoter under Section 43(5) of the RERA Act, along with accrued interest, if any.
Appearances for appellant (Arun Excello Constructions LLP): Advocate R. Kamala Rani.