Parking Deposit Ruling: What It Means for Buyers and Owners in Mumbai Housing Societies

What happened?

Hindustan Times reported that the Co-operative Court ordered a Kandivali West society to return ₹50,000 to a married couple who had paid a stilt parking deposit while transferring their flat. The society must also add 6% simple interest each year and cover the couple's legal costs. The order was passed on September 22.

According to Hindustan Times, the couple paid ₹75,000 in June 2017, as required by a general body resolution of June 10, 2012. After they objected, the society credited ₹25,000 to their maintenance account and kept the other ₹50,000. It said the money had gone into major repairs of around ₹9 lakh, but produced no documents to prove that spending.

The report says the court examined receipts, the resolution and letters exchanged between the parties. It found the society could not support the levy through its registered bye-laws, a separate agreement or any service given in return. Hindustan Times added that the court cited earlier judgements saying a general body resolution cannot authorise collections beyond what the law permits, and ordered a refund under Section 72 of the Indian Contract Act, 1872.

Which sectors are affected?

• Mumbai housing societies
• Kandivali West
• Flat transfers and resales
• Stilt and society parking

Potential impact

The direct effect is on how much a buyer pays at the time of a resale. Societies that ask incoming members for a parking or similar deposit may now face more challenges if they cannot link it to bye-laws, an agreement or a real service. This is one court's order on one set of facts, so it does not automatically cancel every such deposit across Mumbai.

Prices are unlikely to move because of this alone. With Mumbai averaging about ₹32,000 per sq ft in our data, a deposit of this size is small against the flat price, but it still counts as a real transfer cost. Buyers may get more room to negotiate, while societies may tighten their paperwork or stop charging such amounts.