DEVELOPMENT AGREEMENT IN RESPECT OF VACANT LAND HELD IN EXCESS OF CEILING LIMIT
This AGREEMENT is made at ... this ... day of ... between Mr. A (the Owner) ... hereinafter referred to as The Owner' of the One Part; and Mr. B. ... hereinafter referred to as 'The Developer' of the Other Part;
WHEREAS -
1. The Owner is absolutely seized and possessed of a piece of land situate at ... and which is more particularly described in the Schedule hereunder written.
2. The Vendor had filed a Return in respect of the said land under S.6 of the Urban Land (C&R) Act, 1976 and by an order passed by the Competent Authority under S.8 of the said Act. the Vendor is allowed to hold a portion thereof within ceiling limit and the remaining portion of the said land is held to be in excess of the ceiling limit.
3. In the meanwhile, the Vendor had applied to the Govt. under S.20/ 21 of the said Act for exemption from the provisions of the said Act regarding ceiling limit and by order dated the ... day of... the Competent Authority has allowed the Vendor to hold the said excess land and to develop the same by constructing buildings thereon subject to certain terms and conditions therein mentioned.
4. The Vendor being unable to develop the said land on his own approached some Developers and Builders and the Developer hereinabove mentioned has agreed to undertake the work of development on the following terms and conditions.
5. A copy of the said order passed by the Competent Authority under S.20/21 of the said Act is hereto annexed and marked Annexure A for identification and will be deemed to be a part of this Agreement with the intent that the terms and conditions should be binding on the Developer.
6. The said land proposed to be developed is shown on a plan hereto annexed and thereon shown by colour wash and which plan is marked A.
7. The Owner has agreed to authorise the Developer to develop the said land described in the Schedule hereunder written by constructing new building or buildings thereon on Flat Ownership basis and the Owner is agreeable to directly convey the said land with the new Buildings thereon and other structures to any one or more Co-operative Housing Society or
Societies or other body that will be formed by the Purchasers of flats and other premises in such building or buildings on the following terms and conditions agreed to between the parties hereto.
NOW IT IS  HEREBY AGREED  BY AND  BETWEEN THE   PARTIES HERETO AS FOLLOWS :-
1. With a view to develop the said land described in the Schedule hereunder written (hereinafter referred to as the said Land') in terms of the said order of the Competent Authority (Annexure B hereto) the Owner hereby agrees to entrust to the Developer the work of Development of the said  land described  in  the Schedule hereunder written on  the terms hereinafter contained.
2. The Developer hereby agrees to develop and/or cause to be developed the said land on the terms mentioned herein and as permitted by the said order of the Competent Authority by constructing one or more buildings on the said land on the Flat Ownership basis.
3. In consideration of the Owner having agreed to entrust to the Developer the development of the said property described in the Schedule hereunder written and to confer upon the Developer the rights, powers, privileges and benefits as mentioned herein, the Developer agrees to pay to the Owner a sum of Rs... in the manner following. The Developer will pay to the Owner a sum of Rs... as earnest or deposit and in part payment of the said amount on execution of these present; and the balance of Rs... will be paid in the manner following,  that is to say that the said amount will be paid by three instalments of Rs... each, the first of such instalments shall be paid on or before the ... day of... the second instalment on or before the ... day of.... and the third instalment on or before the ... day of... in each
case the time being of the essence of the contract, Provided that, out of the third instalment the Developer shall retain a sum of Rs... which will be paid to the Owner on the execution of the Deed of Conveyance. 
4. If any F.S.I, in addition to the existing available F.S.I, in respect of the said land becomes available hereafter the Developer shall pay to the Owner an additional sum calculated at the rate of Rs... per sq.foot to the Owner,  on such  additional F.S.I,  being sanctioned by the Municipal Corporation.
5. The payment of the said amount by instalments will be secured by a Bank Guarantee to be obtained by the Developer in favour of the Vendor within a period of... months from the date hereof. If, however, the Developer is unable to secure such bank guarantee for any reason, within the said period the Developer shall secure the payment of the said three instalments
by agreeing to sell to the Vendor three more flats in the said new building, (apart from the flat hereby agreed to be sold to the Vendor as provided hereinafter) each flat having a built-up area of ... sq.ft. and in such event the Developer agrees and undertakes, not to sell or agree to sell the said three flats to anybody else and/or to give possession thereof to any other person until the said amount is paid in full to the Vendor. In the event of the Developer failing to pay any of the said three instalments on the due dates thereof, the Vendor shall have option to purchase one of the said three flats for the price of the defaulted instalment and on the Vendor exercising such option by notice in writing to the Developer, the Developer shall sell and shall enter into an Agreement to sell one Flat for the amount of each of defaulted instalment and the Vendor will have the right to transfer the benefit of such Agreement to any other person on such price as may be available by giving fifteen days, prior notice to the Developer of the Vendor's intention to do so. Provided that if the Developer pays the amount of such instalment with interest as herein provided, before the Vendor transfers the benefit of the said Agreement to any other person the Vendor will release the Developer from such Agreement to sell the flat and if by that time Vendor has taken possession of the flat, the same will be returned to the Developer. The said Agreement to sell the flat will be in the same form as of the Agreements to be entered into by the Developers with other purchasers of flats. Subject to what is herein provided all the expenses of such Agreement or agreements for sale will be borne and paid by the Developer. This right or option to purchase the flats in lieu of the said instalments of the consideration will be without prejudice to the Vendor's right to charge interest on defaulted instalment or to take any other legal action provided by this Agreement or in law.
6. If the Developer fails to pay any instalment of the consideration as aforesaid, on the due date thereof the Developer will be liable to pay interest thereon at the rale of ... per cent per annum from the date of default till payment.
7. This Agreement will not be treated as a partnership between the Owner and the Developer or an Agreement for Sale of the said Plot of land by the Owner to the Developer. The Developer is given only a right to develop the said plot as aforesaid.
8. The Developer is satisfied that the Owner is the full owner of the said land and that the same is not subject to any mortgage, charge or any other encumbrance.
9. The Developer shall not start any work of development on the said property unless the building plans are sanctioned by the Municipal Corporation and the I.O.D. and commencement certificate are issued in favour of the Owner.

10. The development of the said property by construction of building or buildings thereon shall be at the entire costs, expenses and risk and on the entire account of the Developer. All buildings to be constructed on the said land and all dwelling units thereon will be in accordance with the Scheme of the Competent Authority/State Government under the said Urban Land (Ceiling & Regulation) Act. 1976 and the other relevant Acts and also in accordance with the sanctioned plans and the Development Rules and Regulations for the time being in force. The Developer shall be at liberty to make necessary applications for the purpose to the authorities concerned at his own costs and expenses in the name of the Owner and the Owner shall join, in such applications but the responsibility of obtaining such permissions will be on the Developer and at his costs.
11. The Owner gives licence and permission to the Developer to enter upon the said property described in the Schedule hereunder written or any part thereof as aforesaid with full right and authority to commence, carry on and complete development thereof in accordance with the permissions herein mentioned. However, the Developer shall not be entitled to enter into possession of the said land as aforesaid until the No Objection Certificate under the provisions of ch xxc of the Income Tax Act is issued as provided in clause 28 hereof.
12. If the Developer or his agents commit any breach of any term or conditions of this Agreement or of the said order of the Competent Authority under S.20/21 of the U.L.C, Act, 1976, then the Owner shall be entitled to terminate this agreement and to forfeit all moneys paid under this Agreement and on such termination the licence and permission given to the Developer as aforesaid shall stand revoked. The said Licence to develop the said property will be personal to the Developer and under no circumstances the Developer will assign his right, and interest to any other party without the consent of the Owner provided that, if with such consent the Developer shall have in his turn entered into an   Agreement with a third party in respect of development of the whole land or any part thereof (of which the Developer shall have given notice to the Owner) under which the Developer has granted right to such third party to develop the said land or any part or parts thereof then the Owner shall not exercise his aforesaid right under this Agreement to terminate the same unless the Owner shall first give notice in writing to such third party also specifying the breach or breaches of the terms and conditions of this Agreement stated to have been committed by the Developer or such third party and in respect of which the Owner intends to exercise his right of termination of this Agreement and such third party shall have failed to remedy or rectify such breach for a period of thirty days from receipt of such notice from the owner.
13. If the Developer will make default in payment of any of the said statements of the balance amount on the due dates thereof as aforesaid then and in that event the Owner shall become entitled to terminate this Agreement and to forfeit all moneys paid hereunder and on such termination the license to develop the property given to the Developer shall stand revoked and the Developer shall take away and remove within 3 months' of such termination all buildings/structures and materials brought on the said land and in default thereof the same shall belong to and vest in the Owner absolutely and the Developer shall not be entitled to any compensation or damages in respect thereof. Without prejudice to his rights, the Owner may, at his option, condone such default on payment of the amount
due by the Developer and extend the time for payment on such terms as may be agreed upon between the parties.
14. The Owner shall at the request and costs of the Developer sign and execute from time to time the plans and other applications for layouts, sub division, construction of the building or buildings and structures on the said land for being sanctioned and approved by the ... Municipal Corporation or other authorities or for amendment of sanctioned plans provided
that, all costs, charges and expenses including Architect's fees in this connection shall be borne and paid by the Developer alone and the Developer shall indemnify and keep indemnified the Owner from and against all actions, suits, proceedings, fines, penalties, Architects fees and all costs, charges, expenses and damages incurred or suffered by the Owner. The Owner shall, if required by the Developer execute a Power of Attorney in favour of the developer or his delegate giving all necessary powers required to carry out the work of Development in all respect as contemplated by these presents.
15. The Developer shall be entitled to carry out at his own costs, charges and expenses in all respects all or any items of work for Development of the said land including laying of drainage, cables, water pipes, and other connections and lighting of roads and other items as per the terms and conditions imposed by the ... Municipal Corporation while sanctioning the layout scheme and the said plans and also other items of works as may be required to carry out for the purpose of making the said property fit for construction of buildings and structures therein. All finances for completion of the said items of works shall be provided and borne and paid by the Developer alone. The Owner hereby agrees to render all assistance and cooperation that may be required by the Developer from time to time  to carry out the Development work in respect of the said land and construction and completion of buildings and structures thereon in accordance with the terms and conditions as may be stipulated by the concerned authorities and in respect of any other matters relating to or arising therefrom provided that, the Owner shall not be liable to incur any financial obligations in that behalf.
16. The Developer shall be at liberty to sell and/or allot the dwelling units or flats and/or any other tenements and/or rights in the buildings and structures to be constructed on the said property and/or to enter into any package deal arrangement for allotment of buildings and structures to be constructed on the said properly at such price and on such terms and conditions and provisions as the Developer may think fit, and subject to any terms which may be imposed by any authority or authorities, provided always that, the Developer shall not be released or discharged from his liabilities and obligations hereunder to the Owner. All such allotments shall, however, be made by the Developer at his own costs and on his own account and at his risk, the intention being that the Developer shall alone be liable and responsible to such party or parties in connection with all dealings between the Developer and party or parties. 
The Developer will, however, be entitled to permit any of the premises to be occupied by any of the allottees of dwelling units or flats or buildings erected on the said property by the Developer only after the instalments due and payable by the Developer to the Owner in respect of the full consideration, is paid to the Owner or the payment is otherwise secured to the Owner by a Bank Guarantee or as hereinbefore provided. The right given to the Developer to sell flats as in the above clause provided is subject to the two conditions namely (1) The Developer shall set apart the flats and premises required to be surrendered to the Govt. or to be sold to the nominees of the Govt. as provided in the Competent Authority's said order under S.20/21 of the U.L.C. Act, 1976 and (2) before agreeing to sell the remaining flats or  remises to anybody the Developer shall offer to the Vendor at least — flats In the said buildings and in the event of the Vendor exercising the option within two months' from the receipt of the notice for exercising the option from the Developer, the Developer shall agree to sell and enter into Agreement for sale in favour of the Vendor and his nominee for the sale of such flats at the price fixed by the Developer for all flats in the building and in the usual terms. Such agreements shall be duly registered and the stamp duty and other expenses will be borne and paid by the Vendor and/or his nominees on the one hand and the Developer on the other in equal shares.
17. The Developer shall be entitled to put up and permit to be put up advertisement boards upon the said land indicating that the said land is being developed by him but without involving the name of the Owner in any manner, and which the Owner will be entitled to remove forthwith if the Developer has committed any breach of this Agreement.
18. Upon payment to the Owner of the full consideration amount mentioned in Clause 3 hereinabove, or the payment thereof or any part thereof remaining unpaid being secured to the Owner as has been agreed upon between the parties hereto as aforesaid and upon the full Development being carried out by construction of buildings and by sale of flats, the owner shall execute and deliver a Deed of Conveyance in favour of the cooperative society or company of the purchasers of flat tenements and premises in the new building or buildings to be erected by the Developer. If there are more than one building constructed and it is proposed by the Developer and/or the purchasers of flats in the buildings to form separate co-operative housing societies or companies one for each building then and in that event and as a sub-division of the plot of land is not possible the owner shall execute a deed of conveyance of the whole land with buildings thereon in favour of one co-operative society which will have more members than other or others and such society shall grant and execute a separate Deed/Deeds of lease in favour of the other society or societies in respect of each of the other building or buildings together with the portion or portions of the said land appurtenant to such building or buildings for a period in perpetuity and at the rent of Rupee one per year and on usual terms. If however a sub, division of the said plot of land described in the schedule hereunder written into two or more sub-plots is allowed by the Municipal Corporation, then the Owner will execute separate deeds of conveyance in favour of each society in respect of each of the sub-plots allotted to such society. The Developer hereby agrees to join in such Deed or Deeds as Confirming party if required. Such Deed or Deeds of Conveyance and/or Leases shall be prepared by the Advocates for the Developer and approved by the Advocates for the Owner.
19. The Developer shall consume or utilise the full F.S.I, available in respect of the said land to be developed and shall not utilise any F.S.I. available in respect of any other properly,
20. The Owner shall sign all applications or papers for the necessary permission and sanctions of the Competent Authority or State Government under the provisions of the Urban Land (Ceiling & Regulation) Act, 1976, for the transfer of the said property described in the Schedule hereunder written either by one Deed or as many deeds as required in favour of the Co-operative Society or Societies or other body as aforesaid. However, it shall be the responsibility of the Developer to file applications with the concerned authorities and pursue the said applications and obtain the said permission of the State Government/Competent Authority at his own costs and expenses.
21. It is agreed that after the date of this Agreement the Developer shall pay and discharge all taxes and outgoings including Municipal Taxes, and all other charges, rates, cess, taxes that may be levied by any Public Body or authority in respect of the said land and the buildings under construction, and which would be payable by the Owner as owner. The Developer shall indemnify and keep indemnified the Owner from and against nonpayment thereof. In the event of the Developer paying any refundable deposits to the Municipal Corporation and other concerned authorities in the course of the development of the said property in the name of the Owner, the Developer shall be entitled to the refund of such deposits in his own name. To enable the Developer to obtain the refund the Owner shall sign or execute all such writings as may be required by the Developer in that behalf, without raising any objection or requisition in that behalf.
22. The Owner declares that no notice from the Government or any local body or authority including the — Municipal Corporation has been received by or served upon the Owner or any person interested in the said property.
23. The Owner declares —

(a) That the Owner is entitled to enter into this Agreement with the Developer and he has full right and authority to sign and execute the same.
(b) That the Owner has not agreed, committed or contracted or entered into any Agreement for sale or lease of the said land or any part thereof to any persons or person other than the Developer and that he has not created any mortgage charge or any other encumbrances on the said property as mentioned herein.
(c)That the Owner has not done any act, deed, matter or thing whereby or by reason whereof the development of the said property may be prevented or effected in any manner whatsoever.

(d) The Developer declares that he has entered into this Agreement after fully satisfying about the title of the Owner.
(e) All out-of-pocket expenses of and incidental to this Agreement and the transactions in pursuance thereof including the Deed/Deeds of Conveyance and other assurances in respect thereof including stamp duty and registration charges shall be borne and paid by the Developer alone. The Owner and the Developer shall pay their respective Advocates' fees.
26. The Developer shall indemnify and keep indemnified the Owner against all losses, damages, costs, charges, and expenses that will be incurred or suffered by the Owner on account of or arising out of any breach of any of these terms or any law. rules or regulations or due to accident or any mishap during construction or due to any claim made by any third party in respect of such construction or otherwise howsoever.
27. The Developer shall be entitled to enter into separate contracts in his own name with building contractor, architects and others for carrying out the said development at his risk and costs.
IN WITNESS WHEREOF the parties have put their hands the day and year first hereinabove written.
THE SCHEDULE ABOVE REFERRED TO
x	x	x	x	x
Signed by the withinnamed	)
Owner, Mr	 in the	)
presence of...	)
Signed by the withinnamed	)
Developer Mr... in the	)
presence of ...	)