Alternate to jv agreement to develop a property
Amit
(Querist) 15 September 2025
This query is : Resolved
I am in discussion with a landlord to develop his property based in Mumbai.
I will give him a portion of the building which will be made on his land.
What legal document can be executed to save stamp duty ?
T. Kalaiselvan, Advocate
(Expert) 16 September 2025
In Mumbai (and Maharashtra generally), when a developer enters into an arrangement with a landlord/landowner for development of his land, there are a few possible structures.
A Development Agreement + Power of Attorney (POA) is the standard route.
As per Maharashtra Stamp Act, stamp duty on DA is payable on the market value of the property/land that is being transferred or given for development rights, not just on nominal value.
If no conveyance/transfer of ownership is effected at this stage, but only mutual obligations recorded, then nominal stamp duty applies (usually ₹500 under Article 5 of Maharashtra Stamp Act for an agreement not otherwise provided for).
However, care must be taken: if the agreement gives you possession of the land or rights akin to ownership, stamp duty will be charged on market value under Article 25 Explanation (deemed conveyance).
Alternately execute a Development Agreement (registered) clearly showing land ownership remains with landlord, and developer only gets rights to develop & sell agreed share.
Attach a supplementary JDA or MOU for revenue/area sharing.
Register the DA and POA. Stamp duty is payable, but structured carefully, it can be significantly less than on outright conveyance.
In Mumbai, almost all reputed developers follow the Development Agreement + POA model. It is accepted by banks, SRA/municipal authorities, and courts. Try to structure it in such a way that it records only development rights and not ownership transfer.
kavksatyanarayana 
(Expert) 16 September 2025
Yes, you and the landlord shall mutually agree on the terms and conditions and then execute the Development agreement with GPA. Consult a local lawyer who drafts the deeds or a senior Document Writer.
