Joint
Ventures

We enter into joint ventures in two models - revenue sharing or sharing of FSI/carpet/saleable area.

In the case of joint development or joint venture, if the landowner retains the property in the newly constructed building, then GST is applicable. This is because the developer provided the service of developing the property for the landowner.
The ratio of a joint venture depends on the amount invested by both parties and also takes into consideration the effort and risk for each.
Legal due diligence is extremely important in a JV, just as it is while purchasing a property. The title of the property must be clean and clear without any encumbrances. The documents required to purchase a property are also required for a joint venture project. We give a 15-day notice for objections if any.
The process of evaluating project feasibility is similar to when purchasing a property. We need to appoint an architect and derive the available FSI based on the road width and other factors, and check whether this FSI can be consumed.