Builder Delays and RERA Complaints

How do we handle RERA claims related to unsold parking or common areas promised by the builder?

Yes, buyers or societies can file RERA claims regarding unsold parking spaces or common areas that the builder promised but failed to transfer or hand over. Under Sections 11, 17, and 18 of the RERA Act, 2016, the builder must transfer all common areas (including parking) to the society upon completion of the project, and any violation can attract penalties and recovery orders by RERA.

Yes, buyers or societies can file RERA claims regarding unsold parking spaces or common areas that the builder promised but failed to transfer or hand over. Under Sections 11, 17, and 18 of the RERA Act, 2016, the builder must transfer all common areas (including parking) to the society upon completion of the project, and any violation can attract penalties and recovery orders by RERA.

Written By: GatePal Analyst

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Short Answer

Yes, buyers or societies can file RERA claims regarding unsold parking spaces or common areas that the builder promised but failed to transfer or hand over. Under Sections 11, 17, and 18 of the RERA Act, 2016, the builder must transfer all common areas (including parking) to the society upon completion of the project, and any violation can attract penalties and recovery orders by RERA.

Detailed Explanation

The Real Estate (Regulation and Development) Act, 2016 clearly defines “common areas” under Section 2(n) to include parking spaces, corridors, staircases, gardens, and other shared facilities. Once the Occupancy Certificate (OC) is received, the promoter (builder) is legally obligated under Section 17(1) to transfer the title of these common areas to the association of allottees (society).

If the builder retains control over unsold parking spaces, clubhouses, or common amenities that were originally promised to buyers, it constitutes a violation of RERA provisions.

Such violations fall under the jurisdiction of Section 11(4)(a) and Section 18(1) of the Act, empowering RERA to:

Direct the builder to hand over or register the common areas to the society.

Impose penalties for unlawful retention or sale of common spaces.

Order compensation or refund to affected members if additional charges were collected for parking or shared facilities.

In Gujarat, Rule 20 of the Gujarat RERA Rules, 2017 outlines how such penalties can be recovered from the builder — including attachment of unsold property or financial recovery through the District Collector as arrears of land revenue.

In practice, the process involves:

The society (or any member) filing a RERA complaint with evidence such as the brochure, sale agreement, and approved building plan showing promised parking/common areas.

RERA issuing a show-cause notice to the builder.

Upon proof of violation, RERA directing the builder to transfer the unsold or unhanded common property or pay monetary compensation.

Real-world Scenarios

Scenario 1: A builder retains 20 parking slots and begins selling them at inflated rates even after society formation. RERA orders the builder to transfer the parking spaces to the society under Section 17(1).

Scenario 2: The builder fails to hand over a promised clubhouse and children’s play area. Buyers file a collective complaint, and RERA imposes a penalty and directs completion of the facility.

Scenario 3: A society discovers that the builder has leased out part of the common basement area to outsiders. RERA directs cancellation of such illegal agreements and restoration of possession to the society.

References

Section 2(n), 11(4), 17(1), and 18(1) of the RERA Act, 2016: Gujarat RERA Act

Rule 20 of the Gujarat RERA Rules, 2017: Gujarat RERA Rules

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