1. WHAT IS TDR?
Transfer of Development Rights (TDR) means making available certain amount of additional built up area in lieu of the area relinquished or surrendered by the owner of the land, so that he can use extra built up area either himself or transfer it to another in need of the extra built up area for an agreed sum of money. TDR is land development rights (permitted to be used on new and existing buildings) issued by the ULB's Urban Local Body (Municipal body, Urban Improvement Trust, Urban Development Authority) in the form of a certificate regulated under the building byelaws or in conjunction with the TDR guidelines framed by State Government from time to time. The TDR in short enables the transfer of development potential partly or fully from one plot to another. TDR certificate shall be issued by ULB's in lieu of land surrendered by the Owner/ private developer, free of cost and free from all encumbrances or by way of declared incentives by State Government for
b) Development of Green spaces- Parks/ Open Spaces/Playgrounds /Water Bodies etc. as per the provision of Master Plan/ Sector Plan.
c) Development of Master Plan/ Sector Plan roads including road widening
d) Development of Public Parking lots.
e) Development of City level Facilities/other public purposes as per Master Plan proposals.
f) Slum rehabilitation scheme under Slum Development
g) In lieu of land surrendered for other purposes as specified by State Government.
2. Purpose of TDR:
The process of land acquisition in urban areas for public purpose especially for road widening, parks and play grounds, schools etc., is complicated, costly and time consuming. In order to minimize the time needed and to enable a process, which could be advantageously put into practice to acquire land for reservation purposes mentioned above.
3. Competent Authority:
An Officer of the Local Body/UIT/Development Authority designated for the purpose of TDR not below the rank of Commissioner in ULB or Secretary in case of UITs/ Development Authorities.
4. Development Rights Certificate (DRC)
If the owner of any land which is required for road widening for formation of new roads or development of parks, play grounds, civic amenities etc., those proposed in the plan shall be eligible for the award of Transferable Development Rights. Such award will entitle the owner of the land in the form of a Development Rights Certificate (DRC). Which he may use for himself or transfer to any other person
5. Calculation of Development Right (DR):
In a plot area of 500 square meters at road A, where floor area ratio is 1.6 and Development right of 150 sqm originated at road “B” is transferred:
| I. | Plot area | : 500 sqm |
| II. | Permissible floor area | : 1.6 |
| III. | Buildable Floor Area | : 500 x 1.6 = 800 sqm |
| IV. | Additional floor area transferred for road “A” | : 150 sqm |
| V. | Total Buildable floor area | : 800 + 150 = 950 sqm |
6. General Terms and Conditions:
1) The Transferable Development Rights Certificate will be issued only in the name of individuals, Private Limited and Limited companies, Statutory Corporations or institutions & registered trusts. It shall not be issued in the name of partnership firms, nominees, agents or any other such persons. If the property stands in the name of partnership firms, TDR shall be issued in the name of partnership firm.
2) The specimen signature / thumb impression in application for grant of TDR shall have to be attested by a Magistrate under his official seal.
3) In respect of property held jointly by several persons, the Competent Authority of ULB's shall issue only one certificate and delivery of TDR Certificate to one of the several joint holders only on the written request made through an application duly signed by all and the same shall be treated as sufficient delivery to all such holders. However it will be necessary to obtain a registered relinquish deed from other co-owners for issuing TDR certificate in the name of one owner.
4) TDR shall be issued under the seal & signature of the Competent Authority of ULB’s. Two original TDR certificates shall be prepared, of which one is required to be kept in official record of the Competent Authority and second will be issued to the applicant after entry in a ledger and an account number shall be assigned.
5) The TDR shall be revalidated after 15 years for next 5 years subject to payment of processing fee. of revalidation @ of 0.5% of actual valuation of TDR value on the basis of prevailing DLC rate of the area from where TDR is generated except land surrendered under Affordable Housing Policy. In case of affordable housing projects 0.1% of actual valuation of TDR value on the basis of prevailing DLC rate of the area from where TDR is generated shall be charged. However after a period of 20 years from the date of issue of TDR certificate revalidation can be done every 5 years only after payment of processing fee @ 5% of actual valuation to be calculated on the basis of prevailing DLC rate at the time of revalidation.
6) The registered holders of the TDR shall not mortgage, pawn, pledge, hypothecate or create any charge or claim on the TDR. The local bodies will not accept any application or claim for transfer of TDR on the basis of any charge as aforesaid created on the TDR. The TDR will not be split on the basis of any charge created on the TDR.
7) In case the TDR Certificate is defaced, lost or destroyed and sufficient proof thereof is submitted to the Competent Authority of ULB, the same may be replaced on payment of charges as 0.1% of the prevailing DLC rates of the land on which TDR has been issued and on submitting the necessary undertaking, indemnity bond, investigating evidences (copy of FIR), etc. and by giving advertisement in 2 local newspapers.
7.Utilization of Transferable Development Right Certificate
1. TDR generated in an urban area can be utilized within the same urban area only.
2. In case the applicant is holder of power of attorney or limited company or corporate body of registered societies and trust, the registered power of attorney or relevant resolution regarding authority to file application or request for transfer, together with certified copy of the Memorandum & Article of Association and / or Bye-laws should accompany the application and utilization form.
3. The TDR shall be utilized in various receiving zones over and above the prescribed standard FAR subject to the maximum FAR in Building Regulations or as per the directions issued by the Government from time to time.
4. In case there are two Competent Authorities in any urban area, before permitting utilization of TDR, NOC will be obtained from the agency in whose jurisdiction land falls where it is proposed to be used
5. The utilization of TDR in favour of an NRI and a foreign national will be subject to rules and regulations of the Reserve Bank of India/Government of India.
6. The utilization of TDR shall be in multiples of 50 sq. mts. only except the last remainder. Any request of the transferor / or of transferee for utilization of TDR other than in multiples of 50 sq. mts. shall not be considered.
7. The Competent Authority may reject the application for utilization of TDR in the following circumstances: -
a) If any dues payable by the owner of the property, to the State Govt. / Municipal Corporation prior to the date of submission of project or surrender of land , then the Competent Authority can withhold utilization of the TDR unless all the State Govt. / Municipal Corporation dues are paid by the owners.
b) If the property is handed over to the ULB's and TDR is obtained by fraudulent means (illegal title of land surrendered/wrong measurement etc.), then the Competent Authority shall reserve the rights for grantingpermission to transfer / utilize the TDR and / or forfeiting TDR.
8. In case of a utilization of TDR jointly held all the joint holders of TDR Certificate shall have to sign the application form to be used for utilization.
9. The utilization of the TDR shall not be accepted unless and until the entry forutilization of TDR is authenticated by the Competent Authority.
10. Any utilization of TDR shall be charged at the rate of Rs. 10/- per sq. mts. subject to minimum of Rs. 1000/- as utilization fees.
11. The utilization of TDR can be considered by the Competent Authority only if the application for utilization is submitted in prescribed form along with the necessary documents and on making payment of utilization fees. The procedure for utilization of TDR shall be as under
12. The applicant seeking to use the TDR shall obtain a letter in the prescribed format from the building plan approving officer of the concerned local body stating the extent to which TDR can be utilized on the proposed plot of land. Building Plan approving officer shall issue this certificate within a
period of 3 months.
13. The applicant shall submit the above letter with an application to the competent authority of ULB for issue of authority letter for utilization of TDR in the name of building plan approval authority with full details where the TDR is proposed to be used.
14. The competent authority (who had issued TDR certificate) after examination of the TDR certificate and records shall issue a authority
8. Utilization of DRC:
- The DRC so permitted may be utilized either at the remaining portion of the area after surrender which will be limited to a maximum of 0.6 times eligible floor area ratio as additional floor area ratio in lieu of transfer of DRC, irrespective of road width.
- The receiving plot shall abut not less than 12 mtr. wide road.
- The receiving plot can utilize a maximum of 0.6 times the eligible FAR for that plot.
- he utilization of DRC in favour of NRI or Foreign Nationals will be subject to rules and regulations of the RBI
- The Authority may charge a fee of Rupees one hundred for grant transfer / utilization / revalidation etc., of DRC.
- The TDR will be allowed to be utilized in multiples of 10 sq.mtrs only, except the last remainder.
- The instrument of utilization of DRC shall have to be executed by both the parties – transfer and transferee.
- For each request to utilize the DRC separate utilization form shall be submitted to the Authority.
- The utilization form requesting to utilize the DRC shall be valid for six months from the date of issue of utilization form.
- The DRC shall be valid for a period of 5 years. However, the same will be revalidated for a further period of 5 years. The DRC shall however, shall lapse after expiry of 10 years.
The Authority may reject / cancel the grant of DRC in the following circumstances
- If any dues payable by the owners of the property to the State Government / Local Authority, prior to the date of handing over physical possession of the properties to the (Bangalore Mahanagar Palika) Authority.
- Where DRC is obtained by fraudulent means,
- Where there is a dispute on the title of the land, till settled by the competent court.
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