INDIA Law and Practice Contributed by: Vivek Chandy, Archana Tewary, Kumarmanglam Vijay and Brijita Prakash, JSA
sity, parking, and safety requirements. Development typically requires planning permissions, building per - mits, and an occupancy certificate from the relevant authority. Administration and enforcement are undertaken by multiple authorities, including: (i) state urban develop - ment departments, which formulate planning policies and approve master plans; (ii) statutory development authorities, which prepare development plans and regulate land development; (iii) municipal corporations and local bodies, which issue building approvals and enforce zoning and construction regulations; and (iv) State Real Estate Regulatory Authorities established under the RERA, which oversee project registration and safeguard homebuyer interests. Together, these institutions ensure that real estate development com - plies with approved land-use plans, technical building standards, and regulatory requirements, thereby sup - porting orderly and sustainable urban growth. 4.2 Development Process, Challenges and Enforcement Development rights are generally exercised in accord - ance with applicable planning and zoning regulations and subject to obtaining the necessary approvals from the competent planning and municipal authori - ties. Typically, the landowner or developer proposing to undertake development must ensure that the pro - posed project is consistent with the land use permit - ted under the applicable master plan or development plan. Where required, approvals such as CLU, layout approvals, and building permits must be obtained from the relevant planning authority or municipal body. Developers may also be required to enter into development agreements or comply with conditions imposed by public authorities, particularly in relation to infrastructure provision, environmental clearances, or land pooling arrangements. Third parties may raise objections or participate in statutory processes, including public consultations conducted during the preparation or amendment of master plans, development plans, or zoning regula - tions. Objections may also be submitted before envi - ronmental authorities during environmental impact assessment procedures, where applicable. Appeal mechanisms are provided under the relevant statutes.
Decisions relating to planning permissions or build - ing approvals may be challenged before designated appellate authorities, state tribunals, or competent courts in accordance with the applicable state plan - ning laws. Planning and zoning restrictions are enforced by development authorities and municipal bodies through approval processes, site inspections, and compliance monitoring. Unauthorised developments or viola - tions of building regulations may result in enforce - ment actions, including penalties, stop-work orders, revocation of approvals, demolition of unauthorised structures, or other measures in accordance with the applicable planning and municipal laws. 5. Investment Vehicles 5.1 Types of Entities Available to Investors to Hold Real Estate Assets Real estate assets can be owned/held by private lim - ited companies, public limited companies, LLPs and partnerships, as well as REITs. 5.2 Main Features and Tax Implications of the Constitution of Each Type of Entity Private and public limited companies must be incor - porated under the Companies Act and must adopt charter documents setting out the objects and reg - ulating the operations of the entity. LLPs are incor - porated under the LLP Act. Foreign investment into LLPs engaged in construction development requires regulatory approval. The costs for setting up companies or LLPs in India are about the same but the cost of operations for a company would likely be higher than the cost of oper - ations for an LLP. Partnerships can also hold land, but foreign invest - ment in partnerships requires regulatory approval. It is relatively inexpensive to set up and register partner - ships, but this may not be a preferred structure since the liability of the partners is not limited. REITs are set up and operated in accordance with the SEBI (REIT) Regulations 2014.
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