Own Land, JDA, JV or DM: Reading the Structure of a Bangalore Housing Project
Someone visiting two towers sold by the same builder may assume one company owns both plots. Often that is wrong. The first tower could be on land the builder purchased, and the second on an outside owner's plot where the builder is simply paid to run the work. This article sorts out the structures common in Bangalore and explains how to learn which one applies.
Why the Set-Up Matters
Three practical questions depend on structure: who holds the land, who receives instalments and who answers if work stops. A name on a banner settles none of them. Ownership records, the project's registration on RERA and the sale contract do.
The 2016 central real estate law makes the "promoter" accountable to buyers. Its section 2(zk) is broad. It covers a builder of flats for sale, a developer of plotted land and a public body that disposes of homes or sites. It also covers anyone developing for an owner who has granted a registered power of attorney.
That definition adds a rule for shared schemes. If the constructing party and the selling party are not the same, each counts as a promoter, and the two owe the statutory duties together.
Development Management: A Brand Hired for a Fee
The owner of the land stays the developer on record and funds the whole project. A recognised builder is paid to design, market, sell and oversee construction. The scheme wears the builder's name, yet its land, account and exposure to loss stay with the company that owns the plot, and the fee has no link to holding a stake.
Joint Venture: A Company Made for One Scheme
Co-owning a single entity are either a landowner with a builder, or a builder with an investor. Often this is a company or LLP formed for the scheme alone, which holds the land or development rights, collects funds and shares out profits. The promoter recorded for such a scheme may be a name never seen in advertising.
Joint Development Agreement: Land Against Construction
One party brings the plot and the other pays for building. Finished flats (area sharing) or sale receipts (revenue sharing) are divided as agreed. The owner generally keeps title until flats are sold, and the builder operates under a power of attorney that has been registered.
Own Land: The Plainest Case
Here the builder acquires the plot through a registered deed and holds it itself or through a subsidiary. A single company owns, constructs, sells and collects payments. The papers are simple to follow, because the seller who signs the agreement is the same owner who appears in the title papers.
Land from a Public Authority
A government body can hand over land by allotment, lease or auction. Its letter or deed lays down terms on use, completion deadlines and transfers. If they are broken the allotment itself may be at risk, so buyers should treat them as part of title. When the body builds and sells directly, the law treats it as the promoter.
Large listed builders frequently run several routes together. A March 2026 presentation by Shriram Properties splits its pipeline into four groups, which it calls own, JDA, JV and DM.
Summary Table
The table below compares the five structures on funding, land and the first point to verify.
| Model | Pays for the work | Holds the land | Verify first |
|---|---|---|---|
| DM | Landholding company | Landholding company | Is the brand on the registration as promoter too |
| JV | The joint entity | The joint entity | Its shareholders and its funding |
| JDA | Builder | Owner of the land | The flat's share and the registered authority |
| Own land | Builder | Builder | Title papers, plus any loan on the plot |
| Authority land | Allottee or authority | Authority, or allottee on its terms | Terms of the allotment or lease |
What RERA Demands in Every Model
A few rules hold regardless of structure. Registration is mandatory, except for small plots (up to 500 square metres) and projects with just eight apartments in total, all phases counted. Of every buyer payment, 70% goes to an account reserved for buying land and putting up the building. Releases follow progress certified by an engineer, an architect and a chartered accountant.
Under a JDA, an owner who sells flats is a promoter beside the builder. A 2019 circular from Karnataka RERA dealt with adding landowners to the project registration. Money from buyers of the owner's share is therefore covered by the 70% rule, and they get equal rights when work is late or faulty.
A DM scheme deserves a slower read. Normally the owning company is the registered promoter, with the brand under a service contract. Should the brand put its signature on sale papers or accept money, section 2(zk) makes it jointly liable, and otherwise claims go first to the owner.
Uncovering the Structure
Brochures rarely say, but three records do, and all are open before booking.
- The regulator's online page for the project, listing the promoter, the landowner and the title documents filed
- The draft sale contract, whose front page names the parties who owe duties to the buyer
- The payment instructions, in which the payee should be the promoter's account earmarked for the project
If the promoter has a different name from the brand, request the connection in writing from the sales team. Acceptable explanations include a subsidiary, a joint entity, a JDA owner and a DM client, each needing separate checks.
Pre-Booking Questions
Any structure calls for these questions:
- In whose name is the land title today, and does a mortgage exist
- Which firm is the registered promoter, and who are its owners
- For a JDA, is the flat in the builder's portion or the owner's
- For a JV or DM, what happens to the scheme should brand and owner split
- Who will sign the sale deed, and under what power
- Who is responsible for five years of structural defect cover, and for handing the project to the owners' association
An independent lawyer's title opinion has no substitute. It ought to review the development agreement, the power of attorney and any charge a lender holds, besides the title papers. Buyers wanting these documents for a listed project can ask our team for help through our contact page.
