Intellectual Property Rights: Practice and Drafting by Adv Gautam Matani. Register Now!
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Prakesh (O)     11 September 2023

Plotted development

I have entered into a Joint Development Agreement with a developer which is not registered. Despite this, all applications, affidavits, and approvals related to the project are in my name. Additionally, all eswathu are registered under my name. However, I have noticed that the developer has used kharab land, which was initially non-saleable, as a saleable area and has even secured eswathu for the same. The developer has already started selling and registering these plots. What are the legal implications and potential risks for me in this situation, and what steps should I take to protect my interests?



 5 Replies

T. Kalaiselvan, Advocate (Advocate)     12 September 2023

Though the JDA was executed by an unregistered document but the POA was executed by a registered document giving powers to the developer  to sell the property.

If the karab land was not part of the JDA then you can issue a legal noice to the developer for violating the agreement conditions and instruct him to refrain from going ahead, if he is not listening then you can file a suit for cancelaltion of the JDA, POA  and to restrain the developer from alienation or further encumbrance of the properties. 

Prakesh (O)     12 September 2023

The POA is not done. He is asking us to regsiter the property directly. Without knowing all these things my dad already registered few plots. That's my concern now. 

T. Kalaiselvan, Advocate (Advocate)     13 September 2023

Without POA on his name the developer cannot sell the property including his share in the property that has been developed.

If the karab land is also part of the joint development agreement then the developer has to sell them through the landowner only.

Actually you have not disucussed the actual problem, therefore your doubts can be clarified by an experienced lawyer in the local after perusing all the documents, otherwise you can approach any lawyer of this forum with all the relevant papers in order to get all the issues properly clarified. 

IsabellaMurphy   15 September 2023

I am not a lawyer, but I can provide some general information that may help you understand the situation you're facing. It's important to consult with a legal professional who specializes in real estate and property law to get advice tailored to your specific circumstances. Here are some potential legal implications and steps you may consider:

1. Breach of Joint Development Agreement (JDA):

If the developer used land that was initially non-saleable without your consent or in violation of the JDA terms, they may have breached the agreement.
2. Legal Ownership and Title Issues:

If the land used by the developer is not legally owned by them, it could lead to title disputes and legal complications.
The fact that all applications, affidavits, and approvals are in your name may create a complex situation, as you may be considered the legal owner of the property.
3. Liability for Unauthorized Development:

You could be held liable for any unauthorized development that has taken place on the property, especially if it violates zoning laws or land use regulations.
4. Eswathu and Saleable Area Issues:

If the developer has obtained eswathu for the kharab land and is selling it as saleable area, this could lead to fraudulent practices and legal consequences for both you and the developer.
5. Potential Legal Actions:

You may need to consider legal actions such as canceling or terminating the JDA, seeking an injunction to stop the unauthorized sales, or filing a complaint against the developer for their actions.
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It is crucial to consult with a real estate attorney who can review your JDA, investigate the land title, and provide guidance on the best course of action to protect your interests.
7. Negotiate with the Developer:

Depending on the circumstances and the relationship with the developer, you may want to explore negotiation and settlement options.
8. Inform Relevant Authorities:

If there are illegal activities or fraudulent practices involved, you should consider reporting them to the appropriate local authorities or regulatory bodies.
9. Property Due Diligence:

In future agreements, ensure thorough due diligence on the property, including verifying its saleability, before entering into any development agreements.

Paul Ross   02 October 2023

Review all rules and regulations set by your local developmental authority for drift hunters that region. There are often specific guidelines around plot sizes, setbacks, floor space index limits, etc.

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