GODREJ PROPERTIES LTD Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) Rule. Heard finally with consent of counsel for the parties.

(2.) The challenge raised in this writ petition is to the order dated 22.09.2016 passed by the Chief Controlling Revenue Authority, Maharashtra State, Pune in exercise of powers under Section 53 A of the Maharashtra Stamp Act, 1958 (for short, 'the said Act'). The consequent recovery notice issued pursuant to that order is also under challenge.

(3.) The facts in brief are that on 30.09.2011 a development agreement was entered into between the petitioner - Godrej Properties Limited (GP) and Goldbricks Infrastructure Private Limited (GIPL). Under the said agreement land admeasuring about 29 acres or 1,17,257 square meters which was called as the larger property was stated to be owned by G.I.P.L. It was intended by G.I.P.L. to develop the said larger property by making construction of various buildings. The total saleable area in the residential zone was calculated to be 27,69,290 square feet. The development rights for constructing various multi-storied buildings was thus given by G.I.P.L. to G.P. The right to market, sell and otherwise dispose of the constructed premises and other facilities was given to G.P. and it was entitled to conduct negotiations to transact and conclude transactions with the unit purchasers. The units were to be sold to the purchasers at the choice of G.P. With a view to ensure compliance of certain conditions as set out in the agreement, an interest free refundable deposit of Rs.29,00,00,000/- was agreed to be paid by G.P. to G.I.P.L. It was further agreed that G.P. would be entitled to recover/adjust 30% of the share of the G.I.P.L. from the gross sales revenue collected from the sale of the buildings. There was also an agreement to share revenue between the two parties. As per the revenue sharing ratio for the first 10,00,000 square feet area of the flats sold on the average sale price of the flats up to Rs.5,250/- per square foot, G.I.P.L. was entitled to 38% of the gross sales revenue while G.P. was entitled to 62% of the gross sales revenue. With regard to the balance saleable area of the flats above 10,00,000 square feet, it was agreed that up to Rs.5,250/- per square foot of the average sale price, G.I.P.L. would be entitled to 43% of the gross sales revenue and G.P. would be entitled to 57% of the gross sales revenue. The aforesaid are the relevant terms that were agreed between the said parties to the development agreement.