1. J. B. NAGAR CPE STUDY CIRCLE OF WIRC OF ICAI SEMINAR ON REDEVELOPMENTS
TOPIC : REDEVELOPMENTS, JOINT DEVELOPMENTS, JOINT VENTURES, LEGAL AND TAX ASPECTS – DEEMED CONVEYANCE
SPEAKER : CA. TARUN GHIA
CA. Tarun Ghia

2. I. LEGAL AND PRACTICAL ASPECTS IN DEVELOPMENT AGREEMENTS :
1. Relevant laws :
2. Role of CAs in drafting documents
3. Implications in sale vis a vis development agreement
4. Society Redevelopments having freehold or leasehold titles
5. Societies without conveyance deed
6. Redevelopments of tenanted premises
CA. Tarun Ghia

3. 7. Redevelopment of MHADA properties
8. Redevelopment of MCGM properties
9. Redevelopment of properties in Greater Mumbai
10. Redevelopment of CRZ properties
11. Slum Redevelopments
12. Assignment of development rights
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4. 14. Drafting of development agreement a crucial aspect
13. Dissents/Litigations in redevelopments of society/ tenanted properties
14. Drafting of development agreement a crucial aspect
15. Drafting will never be complete in one stroke
16. Laws vis a vis Procedural aspects
17. MOFA, 1963
18. Possession vs. license to enter upon
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5. 20. Ensuring Corpus Fund, hardship compensation
19. Verification of title of property, measurements, FSI consumed, surplus FSI, additional FSI, TDR FSI, Premium FSI
20. Ensuring Corpus Fund, hardship compensation
21. Ensuring reconstruction of flats free of charge with enhanced areas
22. Ensuring better amenities to be provided by the developer
23. Ensuring rental allowance for temporary alternate accommodation for agreed period as well for the grace and force majeure events
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6. 24. Permanent Alternate Accommodation 25. Exit Route
26. Issues about Premium FSI and FSI above “2”
27. Violation of TDR norms and regularization thereafter
28. Issues connected with Demolition of the existing building(s)
29. Existing building(s) may be demolished afterwards- FSI imbalance
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7. 30. No possession without OC ! Law vis a vis practices
31. Force Majeure events
32. Issues in drafting and invocation of bank guarantee
33. Importance of Individual Agreements
34. Stamp duty and registration aspects in individual agreements
35. Benefit of FSI beyond a point to Society : implications
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8. 36. Constructions without consumption of FSI
37. Documentary evidences to be obtained from members before vacating premises
38. Issues w.r.t. mortgaged flats
39. Purchase of TDR in the name of Society by the Developer and implications
40. Issues in Collection of proportionate contributions from the incoming members
41. Drafting Power of Attorney
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9. 42. Financials of Developer
43. Construction documents in Original by Developer to Society
44. Avoid irregularities like M-20, AGM, etc.
45. Role of Architect of Society
46. Liability of Developer for Defects in Construction for Reasonable Period
47. Termination of Development Agreement & Consequences

10. II. TAX ISSUES IN REDEVELOPMENTS 1. For the Developers:
Providing free of charge construction to existing members and accounting and tax issues for the developer 
Redevelopments and benefits u/s. 80IB(10)
2. For the Owner(s) :
Point of time when income may become taxable in respect of a
development agreement
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11. 4.Section 2(47)(v) of I. Tax Act 5. Taxability :
3. Section 53A of TP Act :
4.Section 2(47)(v) of I. Tax Act
5. Taxability :
i. Adventure in the nature of trade
ii. Short term capital gains
iii. No cost theory
iv. Long term capital gains
CA. Tarun Ghia

12. 6. Applicability of section 50C to development agreements
7. Taxable Entity :
a. Flat Owners/ Members
b. Condominium of Apartment Owners
c. Company
d. Co-operative Society
8. Society as taxable entity vs. Members as a taxable entity
9. Receipt in the hands of members from society or from developer

13. 10. Application of income vs. diversion of income by overriding title
11. Status of a flat owner/member of a society -
12. A flat in a CHS – occupancy right due to membership !
13. MCS Act: Society is body corporate:
Can acquire, hold and dispose off property
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14. 14. Termination of a Development Agreement :
15. Legal and tax consequences
16. MOU then DA :
Legal & Tax consequences
17. Subsequent events : Revision in terms
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15. III. JOINT DEVELOPMENTS – JOINT VENTURES
1. Need for Joint developments
2. Partnership vs. Joint Venture
3. Governing Laws, legal and tax implications
4. Stamp duty & Registration
5. Computation of Income of Joint Venture
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16. ii. When shares of members are indeterminate or unknown
6. If taxed as AOP
i. Charge of tax
ii. When shares of members are indeterminate or unknown  
iii. When shares of members are determinate and known
iv. Computation of Members’ Shares
v. Income forming part of total income on which no tax payable  
vi. Income for rate purposes
vii. Interest, Salary, bonus, commission, remuneration to members
viii. Interest to member
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17. ix. Interest paid to member in a representative capacity
x. Interest paid to a member on behalf of another person
xi. Interest etc. paid may include payable
xii. Transactions between with members
xiii. Taxation under the head Capital Gains
xiv. Deductions under Chapter VI-A
xv. Set off of losses
xvi. Filing of Return of Income
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18. IV. ISSUES IN JOINT DEVELOPMENTS IN PARTNERSHIP 1. Joint developments
1. Joint developments
2. Distribution of assets on dissolution or otherwise :
a. Dissolution
b. Reconstitution
c. Retirement
3. Revaluation of assets & Credit to Partners
4. Sale of units by firm to a partner
5. Dissolution and discontinuation of business
Thank You
CA. Tarun Ghia