In re SI Property Kerala Private Limited (AAR Kerala)
The applicant, engaged in developing apartments, villas, turnkey projects, and works contract services, entered into a Joint Development Agreement (JDA) on 08.04.2022 with a landowner for constructing a residential apartment complex on 17.36 Ares of land in Thiruvananthapuram. The landowner had earlier executed a JDA with another builder in 2014, which was cancelled in 2022. The previous builder had obtained statutory approvals and completed certain initial construction activities but had not collected any advances. Under the new JDA, the applicant agreed to construct 39 apartments, of which 11 units—totalling 13,573 sq. ft. of built-up area—would be allotted to the landowner as consideration for transferring development rights. The parties agreed to a value of ₹3,87,72,500 for both the landowner’s land contribution and the constructed flats. The landowner also executed a power of attorney authorising the developer to undertake construction, marketing, sale, and collection of payments. The landowner would have no claim over sale proceeds from units sold by the developer.
Possession of the land was handed over to the developer for project implementation. The developer is responsible for constructing the building, marketing the remaining units, and selling them independently. The JDA is structured as an area-sharing arrangement rather than revenue sharing, with the landowner receiving constructed apartments in exchange for development rights. The agreement expressly transfers development rights to the developer.
