DEVELOPMENT AGREEMENT

THIS DEVELOPMENT AGREEMENT is made at Pune on this … … day

of_ _ _ _ __ _, in the year Two Thousand and ___ _ _ _

BETWEEN

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_ _ _ _ _ _ _ _ __ _ _ _ _ _ _Age: _ _ _ years, Occupation: ……… and … … … …
… … … …, having PAN No. … … … … … … …, residing at_ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _; Hereinafter called “the Owner” (which expression shall unless it be
repugnant to the context or meaning thereof mean and include his heirs,
executors, administrators, successors and assigns) of the First Part.

AND

……………………………………………………. ; Hereinafter called “the Developer”

(which expression shall unless it be repugnant to the context or meaning
thereof mean and include his heirs, executors, administrators, successors
and assigns) of the Second Part.

W H E R E A S:-

A) Thus the Owner herein is possessed and well entitled to all that
piece and parcel_ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _. Hereinafter
collectively referred to as Said Property and the said property is more
particularly described in the Schedule hereunder written and is delineated
in red colour boundary line on the plan annexed hereto as Annexure “1”.
The said property which is more particularly described in the Schedule
hereunder written is the subject matter of this agreement. The Owner has
declared and represented that he is are well and sufficiently entitled to the
said property as absolute owner thereof and that he has a clear and
marketable to the said property and at present the said property falls within
the residential zone.

C) The Developer is inter alia interested in developing the said property

and therefore the Developer has approached the Owner for the same and
pursuant to the discussions and negotiations between the parties hereto, the
Developer has agreed to acquire the exclusive developmental rights and
authority to develop the said property and the Owner has agreed to entrust
and grant exclusive development rights and authority to develop the said
property unto the Developer together with his right, title and interest in and
upon the said property of whatsoever nature at or for the price and on
certain terms and conditions more particularly set out herein;

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D) The parties are now desirous of recording the terms and conditions as
agreed by and between them hereinafter in these presents and are desirous
of executing and registering this Development Agreement and accordingly
this Agreement is being duly stamped under Article 5(g-a) of the First
Schedule to the Bombay Stamp Act as amended to date.

NOW IT IS AGREED DECLARED AND CONFIRMED BY AND BETWEEN

THE PARTIES HERETO as under:-

1. The Owner hereby declare that the statements, representations and

declarations made by him in the foregoing recitals are true to his own
knowledge and are made by it conscientiously believing the same to be true
knowing fully well that relying upon the said statements, representations
and declarations to be true and correct, the Developer has agreed to enter
into this Development Agreement and to undertake several obligations as
herein set out.

2. The foregoing recitals are treated as forming an integral part of the

operative portion of this Agreement and shall be read understood and
construed accordingly.

3. The Owner declares and confirms that the Owner is at liberty to deal
and/or dispose off the said property at his own discretion and to enter into
these presents.

4. The Owner hereby grants the exclusive development rights in respect

of the said property free from all encumbrances and reasonable doubts and
claims and also agrees to sell, transfer and convey and/or assign his rights,
benefits, privileges, title and interest in the said property free from all
encumbrances and reasonable doubts and claims as described in the
Schedule hereunder written and as shown on the Plan annexed hereto unto
and in favour of the Developer and the Developer acquire the same and
together with the right to utilize the FSI of the said property under the
Development Control Rules and Regulations with right to construct building
or buildings on the said property and to allot and sell flats/car parking
spaces and other premises and/or develop a scheme of plots on ownership
basis and appropriate the sale proceeds to itself (the Developer) for the
lumpsum consideration of Rs. …………………………………………./= (Rupees

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…………………………………………………….. only), which consideration is paid and/or
agreed to be paid to the Owner as follows:-

a) Rs /= Paid on or prior to the execution of these

presents by the Owner to the Developer vide
Cheque/Demand Draft No. _ _ _ _ _ _ _ _ dated _
_ _ _ _ _ _ drawn on _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ _ _ (the payment and receipt
whereof the Owner doth hereby admit and
acknowledge and acquit release and discharge
the Developer from the same).
Rs. /= TOTAL

The Owner hereto specifically agrees, declares, covenants and

confirms that he has received the consideration payable under these
presents. The Owner further declares and confirms that the Developer shall
be entitled in his sole right and discretion to develop the said property in
any manner, as they deem fit and proper to its exclusive benefit.

5. The Owner has handed over to the Developer all the relevant original
title deeds and documents pertaining to the said property including the
latest demarcation plan pertaining to the said property. The Developer shall
have a right to get further survey done in respect of the said property to
ascertain the exact area of the said property.

6. The Owner shall at his own risks, costs and responsibility do the
following acts, deeds and things within a period of 60 days from the
execution hereof viz:-
(a) Deduce a clear and marketable title to the said property free
from all claims and doubts and satisfy the Developer and/or his
Advocates and Solicitors regarding the same.
(b) Cause any other document or deed to be executed by the said
Owners so as to perfect the title to the said property or cause
any corrections/rectifications in the documents already
executed.
(c) Obtain the necessary orders including order under section 8(4) of
the Urban Land (Ceiling and Regulation) Act, 1976 interalia
stating that the said property is well within the prescribed ceiling
limits under the said Act in the hands of the Owner and that the

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 said property is not excess vacant land in the hands of the Owner
and/or that the provisions of the said Act are not applicable to
the said property. (the costs for the said order shall be borne by
the Developer).
(d) The Owner has Obtained the necessary certificate for
regularisation of the said property under the provisions of the
Maharashtra Gunthewari Developments (Regularisation,
Upgradation and Control) Act, 2001 and have furnished the
original thereof to the Developer.
(e) Obtain consent and confirmation from the remaining holders of
the said Survey no., if any in respect of and as required for the
demarcation and sanction of the building plans and development
of the said property, if required.

7. The Owner has assured that the Owner has a clear, free and
marketable title to the said property and that the same is free from all
encumbrances and reasonable doubts and that the Owner has a clear and
exclusive rights to develop the said property and also assign the same either
in whole or part in the manner herein stated. The Developer has relied on
the said assurances and representation and declarations made herein by the
Owner and has entered into these presents believing the same to be true
and correct. The Developer shall have right to cause searches and also
publish the usual paper notice and to investigate the title of the Owner to
the said property and satisfy themselves as to the title of the Owner to the
said property being free and marketable and free from all claims, demands,
defects and encumbrances. In the event, if any defects, encumbrances,
shortfalls are traced to the title of the Owner or any objections are received
to the paper notices, the Owner shall within a period of 30 (thirty) days
from the intimation of such defect or objection clear the said defect/s,
encumbrances, shortfalls or objections at their own costs. If the Owner fails
to clear such defects, encumbrances, shortfalls or objections within a period
of 30 (thirty) days, the Developer shall have the same settled or cleared at
the costs of the Owner, which costs shall be paid by the Owner to the
Developer within 8 (eight) days on the Developer making a written demand
to that effect. The Owner shall at all times hereafter keep saved and
indemnified the Developer or its nominees and successors for and against
any loss, cost or expenses that the Developer or their nominees or
successors may incur or suffer for any defect in title of the Owner to the
said property.

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8. Notwithstanding to the contrary the Owner doth hereby covenants
that he shall at all times if required by the Developer and their nominees
and more particularly prior to excepting any further consideration
hereunder (i) remove all shortfalls in his title to the said property, (ii) cause
the any other person to execute such documents so as to perfect the title of
the Owner and the rights of the Developer to the said property (iii) remove
and settle all disputes regarding the boundary, if any (iv) remain present
personally at the time of demarcation of the said property, and (v) sign all
such deeds and documents as may be required by the Developer to perfect
his rights in the said property and to finally convey the same.

9. The Owner hereby declares and covenants that:

(A) there are no encumbrances, mortgages, liens, covenants,
restrictions, notices for acquisition, easements or any
outstanding interest or claims on or any liabilities to any
taxation authorities or affecting the said property nor is the
said property the subject matter of any pending suit or
attachment either before or after judgement.
(B) no Notification is issued under any Ordinance, Act, Statute,
Rules or Regulations affecting the said property as per the
knowledge of the said Owner.
(C) That the said property is free hold and is not under any
restricted tenures and that there are no restrictions
whatsoever attributable towards the said property whereby
any permissions are required for development, transfer or
alienation and any amounts being of the like of nazarana,
charges, deposits, etc. are payable to the Government.
(D) neither the Owner nor his pre-decessors in title nor anybody
claiming from and by under or through them have granted any
right, have rights including any right of way or easement or
license or any other rights to any person/s in respect of the
said property and that no such right has become effective by
prescription or otherwise howsoever.
(E) neither the Owner nor his pre-decessors in title nor anybody
claiming from by under or through them have entered into
any agreement for sale or development of the said property
with any person or party prior hereto.

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 (F) that after the execution of these presents, till this agreement
remains in force and subsisting the Owner shall not create any
encumbrance, mortgage, charge or claim on or in respect of
the said property nor shall they seek to create any third party
rights or enter into any other agreement in respect thereof.
(G) the Owner has paid the land revenue and taxes payable in
respect of the said land upto date. The Developer shall pay
the land revenue and taxes in respect of the said property
from the execution of these presents.
(H) that the said property is free, clear and marketable and is in
the residential zone.
(I) The said property is not adversely affected by the provisions
of the Urban Land (Ceiling and Regulation) Act, 1976 or where
under the said property is declared or could be declared as
excess vacant land under the provisions of the said Act
individually in the hands of the said Owner.
(J) That the said property is not intended to be acquired or
reserved for any scheme or purpose by the Government.
(K) That the Developer shall be entitled to consume all the
available FSI pertaining to the said property and shall also be
entitled to load any TDR on the said property, if permitted by
the local authority.
(L) That the Developer shall be at liberty to cause separate 7/12
extract to be issued in respect of the said property if
permissible and for the same the Owner doth hereby accord
their irrevocable consent and confirmation and undertake to
sign all deeds, documents, writings, applications,
undertakings etc. as may be required;

10. On or after the execution hereof the Owner shall fully cooperate
with the Developer and/or its nominees to enable Developer and/or its
nominees to fully and completely develop the said property.

11. The Owner has simultaneously on execution hereof jointly handed

over to the Developer the actual, physical, peaceful and vacant possession
of the said property and this possession is handed over in part performance
of these presents and is merely to be confirmed by the Owner by them at
the time of execution of the final conveyance either in the name of the
Developer or their nominees including a person/s or cooperative housing

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society or condominium or limited company. The Developer shall be
entitled to enter upon the said property and carry out the development of
the said property in terms of this Agreement. The Developer shall on the
execution hereof shall have an irrevocable right to deal with the said
property as per their will, wish and desire without reverting back to the
Owner and to derive such benefits as he deems fit and proper for his own
use and benefit including formulating a scheme under section 80 IB of the
Income Tax Act, 1961.

12. Upon the execution hereof the Owner shall grant and execute in
favour of the Developer or its nominees an Irrevocable Power of Attorney
authorising the Developer or their nominees (jointly and/or severally) to
represent the Owner before the Pune Municipal Corporation and all its
Officer/Officers and/or Authorities under the Urban Land (Ceiling and
Regulation) Act, 1976 or any other concerned authority and to submit plans
proposals applications including any modification of the plans and to engage
Architects, Surveyors, Town Planners, RCC Specialists and to enter into any
agreement for sale of flats or other premises and to lodge the same for
registration with Sub Registrar of Assurances at Pune as the Developer may
desire or deem fit at the costs of the Developer and to finally convey the
said property and structures/ buildings standing thereon in favour of the
ultimate organisation of the tenement purchasers.

13. The Developer shall be entitled to obtain the necessary permission

for Non Agricultural use from the Collector, Pune and/or the concerned
authorities on the execution hereof. Such N.A. permission shall be obtained
by the Developer at its own risks and costs and for the said purpose shall be
entitled to sign and execute the necessary applications, declarations,
documents as may be required for and on behalf of the Owner.
14. The Developer shall be entitled to demolish the existing structures
standing on the said property and shall be entitled to at its own discretion to
dispose off or sell the rubble, wood, steel, structure, etc. of the demolished
structure and to appropriate the benefits thereof.

15. The Owner shall at the request and costs of the Developer sign and
execute from time to time all plans and applications for lay out and
construction of the buildings and structures on the said property and all
revisions and modification thereto for being sanctioned and approved by the
Pune Municipal Corporation or any other authorities including the

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Competent Authority under ULC Act provided that all costs charges and
expenses including fees of the Architects and Structural Engineers in this
connection, shall be borne and paid by the Developer alone.

16. The Developer shall be at liberty to make at its own cost and
expenses necessary applications to the authorities concerned for obtaining
permission for development including Commencement Certificate in the
name of the Owners and the Owner shall join in such application (if
required) but the responsibility of obtaining such permissions will be on the
Developer and the Developer will comply with the terms and conditions
thereof.

16. The Owner confirms that the Developer are entitled to develop the
said property for residential and such other user or users as may be
permissible by the Local Body and/or Planning Authority from time to time
and to construct building or buildings on the said property and to sell
flats/units/and other premises in proposed building or buildings either on
Ownership basis or on other basis or develop a layout of plots and sell them
as freehold plots as the Developer may desire or deem fit and to receive
consideration and to appropriate the same without being liable to account
for the same to the Owner. The Developer shall on completion of the
tenements and building/s on the said property or plotting of the said
property shall be entitled to hand over and give possession of the flats, units
or other premises or plots to the prospective purchasers of such flats, units
or premises or plots. It is hereby further agreed that the Developer alone
shall be liable for the observance and performance of the terms and
conditions of the Agreements for sale of the said premises and the
Developer shall at all times indemnify and keep indemnified the Owner
against all actions, suits and proceedings arising out of the said Agreements
for sale PROVIDED HOWEVER the Owner shall, as required by the provisions
of the Maharashtra Ownership Flats Act, 1963 and Rules framed thereunder,
join in and execute such Agreements for sale, but shall not be liable or
responsible for observance and performance of any of the terms and
conditions of such sale agreements.

17. The Developer shall be entitled to carry out at its own costs, charges
and expenses in all respects all or any items of works for development of the
said property including laying of drainage, cables, water pipes and other
connections as per the terms and conditions as may be imposed by the Pune

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Municipal Corporation and other authorities while sanctioning the plans or
otherwise for the purpose of developing the said property.

18. The Developer shall be entitled to enter into separate contracts in its
own name with suppliers of materials, building contractors, Architects,
Engineers and other Agencies for carrying out of the development of the said
property at its own risk and cost.

19. During the course of development of the said property, if any

deposits, refundable or otherwise, are required to be made to the Pune
Municipal Corporation or any other local authority or public body, the same
shall be made by the Developer, who shall also be entitled to the refund of
such deposits. In case, refund of such deposit is received by the Owner, the
Owner will forthwith reimburse to the Developer such amounts. 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.

20. The Owner shall at the instance of the Developer, at the costs,
charges and expenses (including stamp duty and registration charges) of the
Developer directly execute and deliver the Deed/s of Conveyance/Transfer
in respect of the said property or part/s thereof in favour of the Co-
operative Society or ultimate body or its respective nominees. The
Developer hereby agrees to join in such Deed/s of Conveyance/Transfer as
Confirming Party and also for transferring the newly constructed building/s.
Such Deed/s of Conveyance/Transfer shall be prepared by the Advocates for
the Developer. If a Condominium is formed then the Owner and the
Developer shall execute and register the Declaration in the prescribed form
and the Deeds of Apartment shall be executed in favour of each apartment
owner by the Owner and the Developer.

21. The Developer shall have a right to undertake and commence the
development and/or construction of buildings or building or plotting on the
said property after the Developer obtain the requisite permission and to
carry out the same in accordance with law at the costs and at the risk and
responsibility of the Developer and for the exclusive benefit of the
Developer. The Owner shall not be liable to bear or pay any costs, charges
or expenses in that behalf. The Developer shall duly observe and comply
with and abide by all the building bye-laws, rules and regulations and the

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relevant provisions of law while carrying out development of the said
property.

22. The Developer shall develop the said property by constructing

thereon buildings consisting of residential flats and other commercial
premises as may be permissible in law and by selling the same on what is
known as Ownership basis and /or otherwise by a layout of plots or
otherwise by disposing off the said property as it is or dealing with the same
on such terms and conditions as the Developer decides and the Owner
agrees to transfer thereafter by way of sale the said property or any part
thereof to the person/s or nominees of the Developer including a
Cooperative Housing Society or Association of Apartment Owners or a
Limited Company. The Developer shall be entitled to all muniments of title
relating to the said property, which will be handed over to the ultimate
purchasers.

23. The Owner shall render full co-operation to the Developer to register
(at the cost of the Developer) this Agreement and/or Power/s of Attorney
with the Sub-Registrar of Assurances having jurisdiction at Pune.

24. The Developer shall have full right and liberty to assign all or any of
its rights hereunder granted to it to any third party or person/s at such price
and on such terms and conditions as the Developer may think fit and proper
without reverting back to the Owner. The Owner shall if required by the
Developer join in any such deed or document for the sake of conformity in
law without demanding any further or additional consideration.

25. The Developer shall be entitled to utilise all the FSI available and
also to load any TDR (Transfer of Development Rights) or DRC, which may be
permissible to be utilised on the said property so as to develop the said
property at the risks and costs of the Developer and to the sole benefit of
the Developer. The Owner shall not object or raise any dispute for the
Developer utilising any other TDR/DRC as permissible by law on the said
property and loading the same thereon. The Owner covenants not to claim
any further amount or benefit for the Developer loading any TDR/DRC in and
upon the said property. In the event the said property or any part thereof is
acquired for public road or is acquired under any reservation hereafter by
any authority including Pune Municipal Corporation, then in such an event
the Developer shall alone have a right to hand over possession thereof to the

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concerned authority and the Developer shall be entitled to claim the
compensation thereof either in terms of money or by way of TDR or by
loading the FSI pertaining thereto on the remaining part of the said
property. The Owner shall not raise any dispute thereto.

26. The Developer shall be entitled to mortgage the said property and
the buildings and structures proposed to be constructed on the said property
under the development scheme of the said property to any bank or financial
institution to raise any finance for the development of the said property. It
is specifically agreed that such loan or advances taken by the Developer
shall be repaid by the Developer alone without any financial or any other
liability to the end of the Owner. The Developer hereby agrees and
undertakes to indemnify and keep saved and indemnified the Owner from or
against any liability attaching on to the Owner as a result of the Developer
failing to repay any amounts received by them as loan or advances from
such Bank or financial institution.

27. The Developer shall be entitled to amalgamate the said property

with any other lands by following due process of law to derive maximum
benefit towards the development of the said property. Similarly the
Developer shall also be entitled to sub divide the said property into smaller
portions of lands. The Owner hereto declares that the Owner shall hereafter
not dispute the amalgamation and/or sub division of the said property.

28. The Owner agrees and covenants that in case it receives any
intimation communication or direction from the Competent Authority or
Government relating to the approved scheme or development of the said
property including its implementation the Owner shall recommunicate the
same to the Developer forthwith, and the Owner shall assure that it has not
done or omitted to do anything which is in contravention of the approved
scheme.

29. Notwithstanding anything to the contrary herein, the parties hereto

confirm that the term “said property” used any where in this agreement
shall and is agreed and admitted to mean and include:
a) The said plots totally admeasuring 925 square metres
described in the First Schedule hereunder written carrying net
applicable FSI/FAR as per D.C. Rules.

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 b) The benefits of the Floor Space Index (FSI) and Transfer of
Development Rights (TDR) in respect of said property.
c) the right to claim, utilise and consume the full FSI/FAR
potential available, granted and permitted under the
Development Control Regulations applicable to the area under
the jurisdiction of Pune Municipal Corporation framed or
which may be framed from time to time under the provisions
of the Maharashtra Regional Town Planning Act, 1960 and/or
such other statutes and rules in respect of or relating to the
area of the said property.
d) right to use, utilise and consume the additional FSI/FAR by
way of Transferable Development Rights (TDR) of any other
land to which the Transferee may be entitled to as may be
permissible under the DC Regulations on the said property.
e) right of access for ingress and egress from and unto the said
property.

30. It is agreed that the stamp duty and registration fee payable under
this Agreement and on the Power of Attorney and on the Conveyance or
Conveyances or other deeds (including Declaration and Deeds of Apartment
in case a Condominium is formed) which may be executed in pursuance
hereof shall be borne and paid by the Developer alone or persons claiming
through the Developer and the Owner shall not be responsible or liable for
the same. Each party shall bear and pay the costs of their respective
Advocates & Solicitors.

31. Nothing herein is deemed to be or shall be construed as constituting

a partnership or joint venture between or association of persons constituting
the Owner and the Developer and the Owner will not be liable for the acts
deeds matters and things entered into executed or agreed to be done by the
Developer with the various outside parties and authorities.

32. It is hereby agreed and covenanted by and between the parties

hereto that the Developer shall at all times hereafter keep saved and
indemnified the Owner from and against all actions, suits, prosecutions,
proceedings, claims, accidents and demands and all fines, penalties or levies
that may be taken or imposed on the Owners by any Government or local
body or authority or any other persons whomsoever for anything committed
or omitted or executed or done by the Developer at and in breach of the

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conditions of this Agreement and or under the powers and authorities
contained in the Power of Attorney executed simultaneously herewith or any
act done in the course of the development of the said property.

33. It is agreed between the Owner and the Developer that all disputes
and differences that may arise between the parties hereto in regard to or
touching these presents, carrying out of the terms and conditions herein
under and/or the interpretation thereof in any way whatsoever or as to the
construction, meaning, validity or effects of this Agreement or any clause,
matter or thing herein contained or the rights and liabilities of the parties
herein shall be referred to arbitration. The parties hereto have appointed
Mr. Swapnil Abhyankar, Advocate, Pune as the Sole Arbitrator. The said Sole
arbitrator shall thereupon immediately enter into the proceedings and shall
as far as possible pass award within 45 days from the date of reference of
any dispute. The parties shall not challenge the appointment of the said sole
arbitrator for any reason whatsoever. The Arbitration shall be governed by
the Arbitration and Conciliation Act, 1996 or any statutory modification or
re-enactment in force for the time being. Such arbitration shall be
conducted at Pune in English language. The award passed by the Arbitrator
shall be final and conclusive and binding on the parties.

THE SCHEDULE ABOVE REFERRED TO

(Description of the said property)

thereabout and delineated in red colour boundary line on the plan

annexed hereto as Annexure “1” and bounded as follows:

On or towards the East : By

On or towards the West : By
On or towards the North : By
On or towards the South : By

SIGNED, SEALED AND DELIVERED by the ]

within named OWNER in the presence of . . ]
. ]

SIGNED, SEALED AND DELIVERED by the ]

within named in the presence of . . . ]
]
]

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 ]

Witnesses:
(1) Sign :
Name :
Address :

(2) Sign :
Name :
Address:

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