DEVELOPMENT AGREEMENT
ARTICLES OF AGREEMENT
made at _______________(city) this _____ day of __________, 20__ between (1)
____________ and (2) _________________ both of (city) Inhabitants hereinafter
called "the Owners" (which expression shall unless it be repugnant to the
context or meaning thereof, be deemed to include their respective heirs,
executors and administrators) of the One Part and _______________________ of
_______________(city) Indian Inhabitant carrying on business at
_____________________________ hereinafter called "the Developer" (which
expression shall, unless it be repugnant to the context or meaning thereon be
deemed to include his heirs, executors, administrators and assigns) of the Other
Part: Whereas the
Owners are absolutely seized and possessed of or otherwise well and sufficiently
entitled to all those pieces or parcels of land or ground situate lying and
being at _______________(city) admeasuring _____ square metres or thereabouts
and more particularly described in the Schedule hereunder written (hereinafter
for the sake of brevity referred to as "the said property"); Andwhereas the
said property is vacant save and except a portion thereof which is presently
occupied and encroached upon by some unauthorised occupants or trespassers who
have constructed some unauthorised structures/huts thereon and of which fact the
Developer is aware, he having inspected the said property prior to the execution
of these presents; Andwhereas The
Owners have represented to the Developer that a portion of the said property is
under reservation under the sanctioned development plan and another portion of
the said property is reserved under the draft Development plan and of which fact
the Developer is fully aware; Andwhereas All
of the said property has been declared to the surplus vacant land by the
Competent Authority under the provisions of the Urban Land (Ceiling and
Regulation) Act, 1976; Andwhereas The
Owners have agreed to grant to the Developer and the Developer has agreed to
accept from the Owners exclusive rights of development of the said property upon
the terms and subject to the conditions herein recorded. The Owners hereby
grant exclusive right to the Developers of development of the said property on
what is known as "as is where is basis" and the Developer accepts the same for
the consideration and subject to the terms and conditions herein
provided. It is specifically
agreed that the Owners shall through the Developers' Architects submit plans
for sanctioning of lay out for construction of buildings and/or other
structures on the said property or any part or portion
thereof. The said plans shall
be prepared by the Architects of the Developer and at the costs of the
Developer and the Owners shall submit only such plans as are prepared by the
Developer through their Architects and copy of the finally approved plan shall
be given to the Owners. Soon after the
execution of this agreement, if so required, the Owners shall execute a Power
of Attorney in favour of the Developer or any other person nominated by the
Developer to approach all public authorities and to submit and obtain sanction
of plans of lay-out and the buildings and structure/s to be constructed on the
said property or any portion thereof from the Municipal Corporation of Greater
Bombay and all other concerned authorities. The Developer is
aware that certain portions of the said property are under reservation under
the sanctioned development plan. It is agreed that the Owners shall under no
circumstances be liable to remove the said reservations nor shall the
Developer be entitled to any reduction in the consideration payable hereunder
on account of the said reservations. However, the Owner shall sign all
applications, papers, writings, etc. as may be required by the Developer the
purpose of removing such reservations. In consideration of
the Owners granting exclusive rights of development to the Developer under
this Agreement, the Developer shall pay to the Owners a minimum consideration
of Rs. ____________/- (Rupees ________________ ______________________ only)
(hereinafter called "the minimum consideration") or an amount calculated at
the rate of Rs.50/- per square foot of the F.S.I. which may be sanctioned by
the Municipal Corporation of Greater Bombay, whichever is higher and the said
total consideration amount shall be paid in the manner
following: Rs. ____________/-
(Rupees ______________________ ____________ only) on the execution hereof
being the earnest money or deposit (receipt of which sum the Owners do
hereby admit and acknowledge). Rs. ____________/-
(Rupees _____________________ _____________ only) being the balance
consideration which shall be paid by the Developer to the Owners on the
compliance of the following: The Owners making
out the marketable title to the said property free from all encumbrances and
reasonable doubts. The Appropriate
Authority issuing its NOC under Section 269 UL(3) of the Income-tax Act,
1961. The Owners handing
over complete vacant possession of the said property to the Developers under
an irrevocable license. Developer the
owners giving irrevocable right to construct buildings on their own account
and with right to sell the units in the said building/s to the prospective
purchasers, on ownership basis or otherwise and to appropriate the Sale
Proceeds to themselves although formal possession of the property shall be
handed over to the Developer on execution of the
Conveyance. Notwithstanding
anything contained in the preceding clause it is specifically agreed by and
between the parties hereto that after execution hereof the Developer shall be
entitled to put up fencing around the said property or any portion or portions
thereof, for the purposes of preventing further encroachments but subject to the
existing encroachments, and shall also be entitled to put up fencing around the
portions of the property in occupation of the unauthorised occupation as
hereinabove provided. The Developer shall also make arrangements for guarding
the said property and preventing any further encumbrance or encroachment by
trespassers or unauthorised persons upon the said property or any part or
portions thereof. All costs, charges and expenses in respect of the above shall
be borne and paid by the Developer alone. The Owners shall not be liable to
remove and/or vacate the encroachments or unauthorised occupants who are already
occupying portions of the said property nor shall they be liable in respect of
any further encroachment or unauthorised occupation on the said
property. As from the date
hereof, the Developer shall be solely entitled at his own risk to deal and/or
negotiate with the unauthorised occupants and/or trespassers on the said
property and to take any proceedings against them and/or to arrive at any
arrangement or agreement with them at the costs, charges and expenses of the
Developer alone. However, the Owners shall empower and authorise the Developer
and/or his nominees under the Power of Attorney to be executed as aforesaid to
effectively deal and/or negotiate with the trespassers or unauthorised occupants
and to receive the possession of the respective area occupied by such
trespassers or unauthorised occupants subject to the consideration having been
paid to the Owners for the said property as mentioned hereinabove. The Developer
shall also be entitled to hand over, on behalf of the Owners, any area of the
said property, which falls under reservation and/or set-back and/or requisition
or acquisition to the relevant authorities in the event the same becomes
necessary on receiving proper notice from the authorities and for that purpose,
the Owners shall grant suitable powers and authorities in the said Power of
Attorney to be granted to the Developer and/or his nominee. The Owners declare
that:
The Owners are the
absolute owners of the said property described in the Schedule hereunder
written which is also shown on the plan hereto annexed and marked "A" and
thereon shown surrounded by a red coloured boundary line and that the said
property is vacant save and except the portions thereof, which are at present
occupied and/or encroached upon by the unauthorised occupants and portions
whereof are under reservations as aforesaid. Subject to the
Competent Authority granting permission and/or sanction under the provisions
of the said ULC Act, the Owners have good right, full power and absolute
authority to grant exclusive rights to develop the said property described in
the Schedule hereunder written to the Developer and the Developer shall be
entitled to develop the said property subject to the terms and conditions
herein contained. They have not created
prior to the date hereof nor shall they create hereafter during the pendency
of the Agreement any right or encumbrance of any nature whatsoever in respect
of the said property or any part thereof. Simultaneously with
the execution hereof, the Owners shall deposit all the title deeds relating to
the said property described in the Schedule hereunder written with their
Advocates until the completion of the transaction herein. The said Advocates
shall after examining the title as mentioned in the previous clause, send,
against an accountable receipt all the title deeds to the said Advocates of
the Developer for perusal, as and when required by the said Advocates. On the
completion of the transaction herein the Owners through their said Advocates
hand over to the Developer all the said title deeds against an ordinary
receipt. Upon the Competent
Authority under ULC Act granting the requisite permission and/or sanction for
the development of the said property and on sanction of the plans by the
Municipal Corporation of Greater Bombay and all other concerned authorities as
aforesaid the Developers shall after full payment of the consideration amount
to the Owners be entitled to commence construction on the said property, for
which license to enter upon would be given by the Owners to the Developer
pursuant to this Agreement. The development to be carried out by the Developer
shall be in accordance with the permissions granted by the Competent Authority
under said ULC Act and shall also be in accordance with the sanctioned plans.
The Developer shall also be entitled in his own right to enter into agreements
on what is popularly called Ownership basis or otherwise and/or arrangements
with any person or persons of their choice for the purpose of selling,
allotting, and/or transferring any of the flats/shops/ premises/garages/units,
etc. to be constructed by the Developer on the said property or any portions
thereof in accordance with the terms and conditions laid down by the Competent
Authority and in the sanctioned plans and to receive and appropriate the
consideration payable in respect thereof and/or any part thereof for their own
benefit and use. Such agreements and/or arrangements shall be entered into by
the Developer in his own name and at his own costs and risk and no risk or
liability of any kind shall be incurred by the Owners in any
manner. After the receipt of
the full consideration by the Owners from the Developers, the Owners shall
execute one or more Deeds of Conveyance as may be desired by the Developers
but at the costs and expenses in all respects being borne and paid by the
Developer including stamp duty and registration charges, in respect of the
said property or portions thereof, as the case may be, in favour of a
Co-operative Society or Societies or Association of persons or other body
Corporate who have agreed to acquire flats/shops/garages/premises/units etc.
from the Developer. On receipt of the
full consideration amount by the Owners, if for any reason the Developers do
not desire to obtain the Conveyance of the said property, then the Owners
shall, at the request of the Developers, simultaneously with the payment of
the said balance amount, execute an irrevocable Power of Attorney in favour of
the Developer and/or his nominees or nominee or representatives empowering and
authorising the said Attorneys, inter alia, to execute one or more Deeds of
Conveyance in respect of the said property or any portions thereof in favour
of the Developer or in favour of Co-operative Society or Societies or
association/s of persons to be formed and/or incorporated and/or nominated by
the Developer herein. No further consideration shall be required to be paid by
the Developer to the Owner for execution of such Deed or Deeds of
Conveyance. Prior to the
execution of one or more Deeds of Conveyance in respect of the said property
or any portions thereof in the manner mentioned herein, the Owners shall
produce the requisite Certificate under the provisions of Section 230A of the
Income-tax 1961 for effectively vesting the said property in favour of the
Developer or in favour of the person or persons nominated by the Developer. It
is further agreed that in the event the said Deed or Deeds of Conveyance or
any of them are not executed at the time of payment of the balance
consideration amount an amount representing 10% of the total consideration
amount shall be retained by the Owner's Advocates until the production of the
said Certificate/s under the provisions of Section 230A of the Income-tax
Act. The Owner shall pay
and discharge all assessments, outgoings, taxes, etc. payable in respect of
the said property upto the date the possession of the said property is handed
over by them to the Developer. Thereafter, the same shall be paid and borne by
the Developer alone. The Developer shall pay and discharge all outgoings,
assessments, taxes, etc. for the entire property after possession of the same
whether whole or in part is handed over to the Developer. If necessary, the
same shall be apportioned between the parties hereto. The Owner declares
that no notice of acquisition or requisition issued by the Municipal
Corporation of Greater Bombay or under the Epidemic Diseases Act or any other
statute has been served upon them or anyone on their behalf. If however, any
notice or requisition of the Municipal Corporation or other public body is
issued in respect of the said property after the date of execution of these
presents but before the completion of the transaction the Owners shall comply
with the same at their costs and expenses. The Owners hereby declare that at
present no notice or requisition has been served by the Government of
Maharashtra or Municipal Corporation of Greater Bombay for requisition or
acquisition or set-back in respect of the said property or any part thereof
and that so far as they are aware no such requisition or acquisition or
set-back is contemplated. Provided always that if the Owners have concealed
any such notice issued, inter alia, under any of the Acts as aforesaid, the
Developer will be entitled to cancel this Agreement and on such cancellation
to receive forthwith the earnest money and all other payments made, if
any. All disputes and
differences that may arise between the parties hereto relating to or in
connection with the matter of this agreement or between the parties or their
representatives shall be referred to the sole and final arbitration of Mr.
_______________ or failing him Mr. ____________ as the sole Arbitrator whose
decision shall be final and binding on both the parties. The Arbitrator shall
have summary powers. All out-of-pocket
expenses of and incidental to this agreement including the expenses for Deed/s
of Conveyance and other documents and writings including stamp duty and
registration charges shall be borne and paid by the Developer alone. The
parties shall bear and pay their respective Advocates' professional
costs. The Developer shall
be entitled to develop the said property either by himself and/or through his
nominees including a firm, wherein he is a partner or a company wherein he is
a Director, provided however, all the obligations and liabilities undertaken
by the Developer under this Agreement shall remain in full force and be
personally binding upon the Developer, and in particular his liability for
payment of all amounts under this Agreement to the Owners. The Owners hereby
declare that they have not entered into with any person or persons Agreement
to Sale or Lease or created any third party rights in favour of any person or
persons in respect of the said property. In Witness whereof the
parties hereto have hereunto set and subscribed their respective hands the day
and the year first hereinabove written. Signed and Delivered by
the }
NOW IT IS HEREBY
AGREED BY AND BETWEEN THE PARTIES HERETO as follows:
withinnamed : Owners }
(1) __________________ and }
(2)
___________________ }
in the presence of }
Signed and Delivered by the
}
withinnamed : Developer }
______________________________ }
in the
presence of }
RECEIVED the day and year first }
hereinabove written from
the }
withinnamed Developer a sum of }
Rs._________/- (Rupees _______
}
___________ only) being the }
amount of deposit to be paid }
by him
to us by a Pay Order }
bearing No. __________ and }
dated on
________________ }
Bank ________________ }
Branch _________________
}
Witnesses:
We
say received.
1.
2.
Owners