By Mr. Om Ahuja, JLL
India
Running a small
business from your apartment (flat) can be useful, but it is important to
understand the legalities around it, and make sure you are in the clear
In cases where zoning
laws and the co-operative housing society in question permit it, there can be
cases where running a business from house is viable. Doing so can save on the
cost of renting or purchasing a commercial space. It also saves on the cost of
commuting to and from work as well as on many operational costs.
Commercial Use of
Residential Flat ..!
 |
| Mr. Om Ahuja, JLL India |
It bears mentioning
that full-scale commercial use of a residential flat is often opposed by
co-operative housing societies. That said, utilising 20% of the space in a
residential flat is legally permissible as long as the business in question
falls within certain categories.
For example, the MSC
Apellate Court ruled in favour of a certain resident in Ghatkopar, Mumbai in
1986, stating that carrying out activities such as yoga classes in a
residential flat does not constitute a breach of the bye-laws of a co-operative
housing society.
The ruling basically
meant that the professional activity of teaching certain arts would not be
viewed as commercial activity, even if certain charges are levied.
Commercial Establishments
Act..!
In a case filed under
the Karnataka Shops and Commercial Establishments Act, 1961, it was ruled that
the use of a residence as an office by chartered accountants, lawyers &
doctors would not be considered as a commercial activity.
The premise of this
ruling was that the work & skill involved in such a profession is
predominantly mental or / intellectual rather than physical or / manual.
These cases clearly
indicate that there are some instances where professional activity in a
residential flat would be considered legal. However, these should not be taken
as blanket rulings. Apart from the individual bye - laws of housing societies,
different state laws would need to be considered.
Necessary to Get
Approval of Housing Society.. !
Whatever the other
aspects of the case may be, it is certainly necessary to get the approval of
the housing society in a general body before using a residential flat for
commercial purposes.
Depending on the nature of the business and
also subject to the approval of the housing society, it may also be necessary
to obtain permission from the local municipal authorities for conversion
It may be possible to
obtain permission from the housing society to conduct a business that involves
any movement of people or / storage of
goods in the residence. Nevertheless, it is not a good idea to start any kind
of business in a residential flat without getting complete clarity on the legal
aspects.
Even if a housing
society permits business activity in a certain case, such activity can still be
deemed illegal & be notified
accordingly. It is not advisable to take anything for granted, but best to have
the legality of each undertaking examined by a qualified lawyer.
About the author...!
The author is CEO -
Residential Services at Jones Lang LaSalle India)
Contact Details..!
Mr. Om Ahuja
CEO – Residential
Services
+919820436400
om.ahuja@ap.jll.com
No comments:
Post a Comment