DEVELOPMENT AGREEMENT
ARTICLES OF AGREEMENT made at Bombay 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 Bombay 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 Bombay in the registration District and sub-District of Bombay City and Bombay
Suburban 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:
NOW IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO as follows:
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 }
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