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 Compe
tent 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 follow
ing 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 iden
tification 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 Corpo
ration 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 Agree
ment 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 commit
ted 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 compen
sation 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 Corpora
tion 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 comple
tion 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 Develop
ment 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 co
operative 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 construc
tion, and which would be payable by the Owner as owner. The Developer
shall indemnify and keep indemnified the Owner from and against non
payment 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 whatso
ever.
(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 Con
veyance 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 ...
)