Can Builders or Flat Owners Claim Exclusive Rights Over Common Parking Areas After Completion and Sale of Flats?

The Andhra Pradesh High Court clarified that neither the builder nor individual flat owners can claim exclusive rights to construct or use any part of common amenities and areas (including parking space) after flats are sold, reaffirming that such areas remain common property of all residents. The court upheld municipal action pursuant to statutory powers, holding that unauthorised post-occupancy construction in common parking space warrants immediate removal. This ruling serves as binding authority within Andhra Pradesh and strong persuasive authority elsewhere, cementing the shared nature of residential apartment common areas.

 

Summary

Category Data
Case Name WP/4384/2022 of Pithalla Srinivasa Rao Vs The State of Andhra Pradesh, CNR APHC010072402022
Date of Registration 18-02-2022
Decision Date 02-09-2025
Disposal Nature DISMISSED
Judgment Author Justice Harinath.N
Court High Court of Andhra Pradesh
Bench Single Judge (Justice Harinath.N)
Precedent Value Binding authority within Andhra Pradesh; strong persuasive value for other jurisdictions
Type of Law Municipal Law / Urban Development Law / Apartment Ownership
Questions of Law Whether builders or owners can claim exclusive rights or construct upon common parking areas post-sale
Ratio Decidendi

The court held that after completion and sale of flats, neither the builder nor individual owners have the right to construct or claim exclusive use over common amenities or areas, including parking spaces. All residents possess equal and shared rights and access to such common areas. Any post-occupancy unauthorised construction in a parking area is unlawful and subject to removal. The municipal authority is empowered and justified to enforce these rights, and the issuance of the impugned demolition order was legal. The permissible exception is for a watchman room and toilet within 25 sq.m. limit.

Facts as Summarised by the Court

Petitioner constructed rooms in the stilt-floor parking area after obtaining occupancy certificate; municipal authorities issued demolition orders for unauthorised post-occupancy construction based on a resident’s complaint; petitioner’s claim of right based on prior occupancy certificate and payment of penalties rejected.

Practical Impact

Category Impact
Binding On All subordinate courts and authorities within Andhra Pradesh
Persuasive For Other High Courts, potentially the Supreme Court
Follows Legal principle of equal/shared access to common areas in apartment complexes

What’s New / What Lawyers Should Note

  • Reiterates that once flats are sold in an apartment complex, common areas (including stilt/parking spaces) remain common property for all residents; neither developer nor individual owners can unilaterally construct or claim exclusive use.
  • Occupancy certificates do not legalise subsequent unauthorised construction in common areas.
  • Municipal authorities are within statutory jurisdiction to enforce removal of post-occupation unauthorised structures in parking/common areas.
  • Permissible construction is restricted only to a watchman room and toilet within prescribed area (25 sq.m).
  • Lawyers representing builders/owners should be cautious in advancing claims over common amenities after sale and beware that post-occupancy unauthorized constructions are liable to demolition.
  • Apartment residents/trusts may rely on this precedent to protect parking and common spaces against encroachment.

Summary of Legal Reasoning

  • The court examined the petitioner’s contention that once an occupancy certificate is granted (after payment of penalties for deviations), subsequent action against further construction in the parking area is not maintainable.
  • It scrutinised records and found that as on the date of the occupancy certificate, the stilt area was vacant and designated for parking per the approved plan.
  • The disputed unauthorized constructions occurred after occupancy was granted and after common areas became vested in all flat owners.
  • Section 115(4) of the APCRDA Act and Section 640 of the HMC Act empower the municipal authority to act against unauthorized constructions in violation of sanctioned plans.
  • The court stated explicitly that neither the builder nor any specific flat owner can claim particularised rights over common amenities and areas, and any deviations in these areas are unlawful and must be removed.
  • Exception is provided only for a watchman room and toilet up to 25 square meters in the parking area as per municipal regulations.
  • The court found the municipal action and impugned orders justified and refused to interfere.

Arguments by the Parties

Petitioner

  • Claimed right to construct/convert a portion (400 sq.ft.) in the stilt area to office, watchman, and storage room, as occupancy was granted after physical verification and penalty payment.
  • Contended that post-occupancy, municipal authorities had no jurisdiction to question alleged unauthorized construction in common area, especially after five years.
  • Asserted that the impugned notice/order was vague, without jurisdiction, and contrary to previous municipal actions/permissions.

Respondent No.2 (Municipal Authority)

  • Alleged the petitioner suppressed facts; claimed occupancy certificate was granted when stilt area was vacant and as per sanctioned plan.
  • Asserted that unauthorized construction in parking area was carried out after occupancy certificate.
  • Stated power under APCRDA Act and HMC Act to remove deviations in common areas and enforce plan compliance.

Respondent No.3 (Flat Owner/Complainant)

  • Alleged illegal construction (1800 sq.ft.) and commercial use by petitioner in the parking area, causing hardship to residents.
  • Sought dismissal of the writ on grounds of unclean hands by the petitioner.

Factual Background

The petitioner, developer of a residential apartment complex in Mangalagiri, obtained construction permission for a stilt (parking), ground, and four upper floors, after creating a mortgage as required by municipal rules. Occupancy certificate was issued in 2017 after payment of penalty for certain deviations. All flats were then sold and occupied. Subsequently, on a complaint by a resident, authorities found unauthorized rooms constructed in the stilt parking area and issued orders for their removal. The petitioner challenged the municipal demolition order, asserting prior compliance and lack of authority to act post-occupancy.

Statutory Analysis

The judgment analyses and applies Section 115(4) of the Andhra Pradesh Capital Region Development Authority (APCRDA) Act and Section 640 of the Hyderabad Municipal Corporation (HMC) Act, 1955. These provisions empower municipal authorities to take action against unauthorized constructions and to ensure adherence to sanctioned plans in urban areas. The Court held that the issuance of demolition/provisional orders under these statutes was proper and within jurisdiction, regardless of ownership status post-occupancy.

Alert Indicators

  • Precedent Followed – The judgment reaffirms the existing legal position regarding common areas and municipal enforcement powers.

Citations

No external legal citations are specified within the judgment.

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