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What is TDR ?

When some amount of extra built up space is made accessible by way of the area handed over by the owner of the land, because he will be able to utilize the additional built up area or give it for an approved price to another party who actually needs it. A Transfer of Development Rights is issued for the same.

Purpose of TDR

The act of acquiring land in city/municipal areas for the development of public utilities, such as parks, playgrounds, schools and widening of roads; is tedious, expensive and takes up a lot of time. The purpose of a TDR is to reduce the time factor and to facilitate a procedure which could be beneficial and favorably observed to acquire land for the purpose of reservation as cited above.

Legal Basis for TDR

The Karnataka Government deemed it as essential to modify the K.T.C.P. Act of 1961 so as to authorize local bodies (Corporations/Planning Authorities) to allow extra FAR for the free land provided; as and when such lands are needed for widening and/or formation of roads, for development of parks/playgrounds and for other public facilities. Therefore, the Government has introduced a new section 14B in the K.T.C.P. Act, 1961

Development Rights Certificate ( DCR )

The party, that is, the owner of any land, which falls under the area needed for widening and/or formation of roads, development of parks, playgrounds and public utilities, etc.; proposed in the plan shall be entitled to receive the Transferable

Development Rights in the form of a Development Rights Certificate (DRC), which he may retain for himself or transfer to another person

Calculation of Development Rights ( DR ) ILLUSTRATION FOR USE OF TRANSFER OF DEVELOPMENT RIGHTS

Illustration No. 1: In a land area of 500 square meters at road “A”, wherein the floor area is 1.5:-

  • Area of the plot : 500 sqm
  • Floor area allowed : 1.5
  • Floor area that can be used to build : 500 X 1.5 sqm = 750 sqm
  • Area handed over : 100 sqm
  • Extra floor area in the form of Development rights: 150 sqm.
  • Site area after handover : 500 – 100
  • Floor area that can be built in land area of 400 sqm (after surrender)

a) If the extra floor area is not used in the same land : 750 sqm

b) If the extra floor area is used in the same land : 750 + 150 = 900 sqm

Illustration No. 2: In a land area of 500 square meters at road “B”, wherein the floor area is 0.75:-

  • Land area : 500 sqm
  • Floor area allowed: 0.75
  • Floor area that can be used to build: 500 X 0.75 = 375 sqm
  • Area handed over : 100 sqm
  • Extra floor area in the form of Development rights : 150 sqm
  • Land area after handover : 500 –100 + 400 sqm
  • Floor area that can be built in land area of 400 sqm (after surrender)
  • If the extra floor area is not used in the same land : 375 sqm
  • If the extra floor area is used in the same land : : 375 + 150 = 525 sqm

Illustration No. 3: In a land area of 500 square meters at road “C”, wherein the floor area is 0.75 and the Development right of 150 sqm originally at road “A” is transferred :-

  • Land area: 500 sqm
  • Floor area allowed: 0.75
  • Floor Area that can be used to build: 500 x 0.75 = 375 sqm
  • Extra floor area transferred for road “A”: 150 sqm
  • Total floor area that can be built: 375 + 150 = 525 sqm

Zones of TDR

Taking into consideration the extent of progress, the city is divided into regions, that is, extensive growth (A-zone), moderate growth (B-zone) and low growth (C-zone) zones in the plan. The Development rights shall be transferred from the extensive growth region to the other regions and not the other way round.

Utilisation of DCR

  • The allowed DRC may be used at the balance part of the area after handover, which will be only to the extent of 0.6 times entitled floor area ratio as the extra floor area ratio by way of transfer of DRC, regardless of the road width.
  • The receiving land shall have a road width which is not less than 12 mts.
  • The utilization limit for the receiving land is only to the extent of 0.6 times the entitled FAR for that land.
  • The rules and regulations of the RBI will apply for NRIs or Foreign Nationals to utilize DRC.
  • A fee of Rupees one hundred will be charged by the authorities for grant/transfer/use/validation, etc., of DRC.
  • Using the TDR will be allowed only in multiples of 10 sq mts excluding the finally remaining land.
  • The execution of the document of use of DRC will have to be done by both the parties involved – transferor and transferee.
  • For every application to use the DRC, separate utilization forms shall be furnished to the Authority.
  • The validity of the utilization form requesting to utilize the DRC, from the date of issue, shall be only up to a period of 6 months.
  • The validity of a DRC is for 5 years and the same can be revalidated for another 5-year period. However, after expiry of 10 years the DRC will lapse.
  • The grant of DRC may be rejected/canceled due to the reasons mentioned below:
    • In case of any outstanding dues payable by the owners of the property towards the State Government/Local Authority before the date of submitting the ownership of the properties to the (Bangalore Mahanagara Palike) Authority.
    • If they have acquired the DRC through deceitful ways
    • In case there is an on-going dispute on the title of the property, until it is settled by a competent court.

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Karnataka, India.
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