TRANSFER OF DEVELOPMENT RIGHTS

Rapid urbanization has been intensifying the demand for urban construction land-housing,
manufacturing-related expansion, traffic and transportation and other infrastructure development to
ensure sustainable development and to improve the quality of life of urban dwellers. The problem is
aggravated in metropolitan cities, where there is movement of population with the prospeckkt of better
livelihood. Land, a scarce resource with high cost is essentially required for creation of public and
common assets. The major portion of land in the State is under private ownership. Transfer of
Development Rights (TDR) has emerged as a popular instrument world-wide to minimise the time and
cost for obtaining the land and supporting the ULBs in saving cost required for developing urban
infrastructure projects. Since the first TDR program was implemented in New York City in the 1960s
(Richards, 1972; Nelson et al., 2013), the utility of TDR has spread to other developed and developing
economies. The TDR is considered as a fair mechanism for both the landowners and the local bodies,
preserving the building rights of the property owners on land and enabling ULBs to providing
infrastructure/amenities without huge expenditure for a larger public good. In its simplest form, the
concept of TDR involves the surrender of land reserved for various public purposes in the development
plan free of cost and in exchange of a right to the holder to construct a built up area equivalent to the
permissible FSI of the land handed over by him on one or more plots in the zone specified; the rights
being transferable.

The provisions made for the development rights that arise from a piece of land and yet acquire a separate
and independent existence with the added flexibility of being transferable come very useful in case of
plots of land shown in the Development Plan as reserved for some public purpose or amenity that
prohibits their owners from developing those plots by making any other kind of construction.

In India, the concept of TDR was introduced for the first time in the Maharashtra Regional Town
Planning Act in the year 1993 by an amendment of Section 126(1)(a), (b) and (c) of the said Act. The
modalities for grant of TDR were brought into force by the amended Development Control Regulation
(for short 'DCR') N-2.4 with effect from 5.6.1997. TDR had its origin in the Draft Regulation Bill of
1984, whereby it was conceptualised as a mode to allow the owners of the lands reserved for various
social amenities in the development plan to develop the said plots for combined uses thereby getting the
reservation site developed for the amenity for which such land is reserved at the same time allowing the
owner to get certain potential of the plot for his beneficial use’ (MCGB, 1984) 1. In 1986, the state
government constituted Committee under Mr. J.B.Dsouza 2, also known as the Bombay Development Plan
Advisory Committee (BDPAC), justified substantial modification to the Development Control Rules. The
said recommendations finally found refection in the Development Control Regulations, which came into
force in March 1991. However, though the section on TDR in the Draft Development Plan expressed
concern on the municipal corporation’s inability to raise sufficient funds to keep pace with the growth in
population of the city, TDR was recommended as a measure for enhancing public participation in
implementing the Development Plan.

TDR effectively allows developers to exceed the permitted Floor Space Index on the land proposed to be
developed. The award of TDR entitles the owner of the land to a DRC which he may use himself or
transfer it to any other person. TDR is being by various ULBs in some states, Maharashtra, Andhra
Pradesh, Gujarat and Telangana falling under this category and in selected cities in other states
(Bangalore and Mangalore in Karnataka; Chennai in Tamil Nadu; Madhya Pradesh, Rajasthan and
Telangana. States like Assam, Haryana, Jharkhand, Uttarakhand and Uttar Pradesh have formulated
1
MCGB. 1984. Report on the Draft Development Plan (revised) 1981-2001. Mumbai: Municipal Commission of
Greater Bombay
2
D'Souza, J. B., 1987. Report on Bombay's Second Development Plan, 1981-2001. Mumbai: Mumbai
Development Advisory Committee, Government of Maharashtra. Government of Maharashtra, 1987. Report on
Bombay's Second Development Plan, 1981-2001. Mumbai: Mumbai Development Advisory Committee,
Government of Maharashtra.
policy/developed rules. The present Section is divided into three parts; first part covering the three states
where the instrument is implemented across various ULBs; second part covering those states where it is
implemented in select cities and final part discussing the key features of the TDR policies in upcoming
states which are yet to implement. The fourth part of the section summarises the key technical differences
across the TDR policies all states. Some important judicial interpretation of implementation of TDR is
presented in the fifth part of the section followed by conclusion.

I States with Wide Implementation of TDR

1. MAHARASHTRA
Law/Policy/GOs: The Maharashtra Regional and Town Planning (MRTP) Act, 1966 and Unified
Development Control and Promotion Regulations (UDCPR), 2020.

Under MRTP Act (Section 126 1(b), if any area of land/ plot falling under Regional Plan, a Development
or any other plan or town planning scheme, or any land is reserved for public purposes, the Planning
Authority (or any appropriate Authority) acquire the land from the landowners for TDR against the area
of land surrendered free of cost and free from all encumbrances, as well as additional FSI or TDR against
the development or construction of the amenity on the land at their own cost.

Definition: TDR is compensation in the form of Floor Space Index (FSI) or Development Rights which
shall entitle the owner for construction of built-up area subject to provisions in this regulation.

Eligibility/Purposes: The UDCPR, 2020 outlines the purposes for which compensation in terms of TDR
is allowed:
 lands under reservations for public purposes proposed in the Development Plan
 lands under any deemed reservations prepared as per the provisions of MRTP Act, 1966
 lands under any new road/road widening proposed under local govt. legislations
 development or construction of the amenity on the reserved or deemed reserved land
 unutilized FSI of any structure or precinct which is declared as Heritage structure
 housing for slum-dwellers
 development of housing under PMAY
 Other purposes notified by the Government from time to time.
TDR is not permissible in earlier land acquisition cases; cases where compensation had already been
paid/award declared; layout has already been sanctioned (prior to the regulations); possession of land has
been taken by mutual agreement; allocations not subjected to acquisition and existing nallah, river,
natural stream, natural pond, tank, water bodies etc.
Requirements: TDR is being implemented by both the ULBs and UDAs including the Metroploitan Area
Development Authorities in the State. The State including the FSI credit is issued as a certificate called
the Development Right Certificate (DRC). The DRC shall specify the FSI credit in square meters of the
built-up area to which the owner or lessee is entitled, the place from where it is generated and the rate of
that plot as prescribed in the Annual Statement of Rates issued by the Registration Department for the
concerned year. TDR generated within the jurisdiction of a particular Authority is to be utilised within the
jurisdiction of the same Authority as per this regulation. The DRC is issued only after the land is
surrendered to the Authority, free of cost and free from encumbrances.

The technical requirements on the part of the landowner includes levelling of the land to the surrounding
ground level and after constructing/ erecting a 1.5 m. high compound wall / fencing i.e. brick/stone wall
up to 0.60m. above ground level and fencing above that upto remaining height with a gate. These are to
be done at the cost of the owner and to the satisfaction of the Authority. If levelling of land and
construction/erection of the compound wall/ fencing as per Clause (b) below to the land under surrender
is not desirable considering the total area of reservation, the quantum of TDR shall be reduced to 1:1.85
and 1:2.85 in non-congested area and congested area respectively. In such cases, the owner shall have
also an option of paying the cost of construction of compound wall (as decided by the Authority) without
reducing the quantum of TDR.

In case of lessees, the award of TDR shall be subject to lessee paying the lessor or depositing with the
Authority for payment to the lessor, an amount equivalent to the value of the lessor's interest to be
determined by the Authority on the basis of Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement (RFCTLARR) Act, 2013 against the area of land
surrendered, free of cost and free from all encumbrances. In case of lands having tenure other than Class-
I, Inam lands, tribal lands etc., N.O.C. from Competent Authority shall be produced by the land holder at
the time of submission of application for grant of TDR.

TDR Generation and Utilisation

Entitlement: The entitlement for TDR in the congested area is three times the area surrendered in
congested area and two times the surrendered area in non-congested area. If the landowners submit their
request for the grant of TDR in the development plan within two years of the approval of these
regulations, incentive TDR of 5% of the surrendered land area is allowed.

Construction Amenity TDR: The quantum of TDR generated in cases of building of an amenity or the
construction of a reservation/road, Slum TDR, Heritage TDR are however different. Incase of
construction amenities, an owner or lessee may be granted TDR if they develop or construct an amenity
on a surrendered plot at their own cost, subject to the Authority's approval. The Construction Amenity
TDR is arrived as given below:
A/B * 2.00 (in sqm)
Where,
A = cost of construction of amenity in rupees as per the rates of construction mentioned in Guideline
Values for the year in which construction of amenity is commenced.
B = land rate per sq.m. as per the Guideline Values for the year in which construction of amenity is
commenced.

Utilisation: The TDR generated from any land use zone can be utilised on any receiving plot, regardless
of the land use zone. The equivalent quantum of TDR to be permitted on receiving plot is governed by a
formula.
Formula: X = (Rg/ Rr) x Y, Where,
X = Permissible Utilisation of TDR/DR in sq.m. on receiving plot.
Rg = Rate for land in Rs. per sq.m.as per GV in generating year.
Rr = Rate for land in Rs. per sq.m. as per GV of receiving plot in generating year.
Y = TDR debited from DRC in sq.m.

The areas restricted from utilisation of TDR include the following:

 Agricultural/ No Development/ Green zone/ Green Belt/ Regional Park/ HTHS Zone and Bio
Diversity Park reservation in the Development Plan.
 Area within the flood control line specified by Irrigation Department.
 Coastal regulation zone.
 Area having developmental prohibition or restrictions imposed by any legislation
 Koregaon Park area in Pune Municipal Corporation area

Implementation: According to information received from Maharashtra, 39 ULBs in the state, spread
across all the six divisions (Pune, Konkan, Nashik, Aurangabad, Amravati and Nagpur) are implementing
TDRs in the entire state. Table shows the division-wise generation and utilisation of TDR. Konkan
division that includes Brihanmumbai, Thane among others generates about half of the TDR generated in
the state and 55 percent of the TDR utilised followed by Pune division at 34 percent and 26 percent
respectively. Among MCs across all the divisions, Pimpri Chinchwad MC from Pune Division tops in the
generation of TDRs (28% of total) followed by two MCs from Konkan division viz. Kalyan Dombivali
MC (23%) as well as Thane MC (15%).

On the other hand, Kalyan Dombivali in Konkan Division tops in the utilisation of TDRs with almost
one-third of the total TDRs utilised in the state followed by Pimpri Pinchwad (21%) and Thane (16%). In
Maharashtra, 1970 acres of land have been acquired through TDR. Compensation worth 21500 crores
have been substituted by the TDRs, yielding significant benefits to both the state and landowners.

Table TDR Generated Division-Wise (in Sqm)

Division ULBs (MCs) TDR TDR Land Savings
Generated Utilized acquired (Cr.)
1 Pune Talegaon Dabhade, Pune, Pimpri, 1379.66 668.16 76.37 479
Islampur MCl, Sangli Miraj Kupwad, (34.17) (26.16)
Ichalkaranji Kolhapur, Barshi, Solarpur

2 Konkan Brihanmumbai, Thane, Kalyan 1944.87 1420.93 1388.23 19327

Dombivali, Mira Bhaindar, Ambarnath, (48.17) (55.64)
Ulhasnagar, BNC, Kulgaon Badlapur,
Palghar, Karjat, Khopoli, Panvel,
Malvan
3 Nashik Jalgaon, Ahmednagar, 221.30 99.92
Dhule (5.5) (3.9) 144.90 586
4 Aurangab Aurangabad, Jalna, Parbhani, Omerga 162.51 94.80 121.67 465
ad Nandedwaghala, Latur, Osmanabad (4.02) (3.71)

5 Amarav Amaravati, Khangaon, Malkapur 149.39 176.84 167

ati Yavatmal, Washim (3.7) (6.91)
113.88
6 Nagpur Nagpur, Gondia 179.60 93.18 518
(4.44) (3.64) 125.17
Total 4037.32 2553.83 1970.22 21,542

2. ANDHRA PRADESH
Law/Policy/GOs: TDR was introduced in Andhra Pradesh Building Rules since 2007. Presently, the
Andhra Pradesh Building Rules, 2017 and GO issued in the same year governs the operationalisation of
TDR. A real time online TDR portal was launched in the state from October, 2019.

Definition: TDR is an award specifying the built-up area an owner of a site or plot can sell or dispose or
utilize elsewhere, whose site or plot is required to be set apart or affected for a community amenity or
development for public purpose in the Master Plan or in road widening or covered in recreational use
zone etc. The award would be in the form of a TDR Certificate issued by the Competent Authority.

Eligibility/Purposes: Compensation in the form of TDR is allowed for the following purposes:
 Master Plan Road/Road Development Plan/Circulation network
 Traffic/transport infrastructure/Bus Rapid Transport System
 Affordable housing projects
 Urban infrastructure projects-water, sewerage, education etc
 Conservation &development of lakes/water bodies/nalas foreshore
 Recreational buffer development, either side of Electrical Tower lines
 Clearance distance left for oil/gas pipeline
 Heritage buildings/precincts

Requirements: TDR is granted by both the UDAs and ULBs in Andhra Pradesh. The TDR Certificate
(issued by the Competent Authority) is awarded to the landowners when the lands for various purposes
(Table 1) are transferred to the local body/Development Authority by way of registered gift deed. N o
development permission is given in the remaining site unless this condition is complied with. In case of
ULBs, where the town planning section head is in the cadre of Deputy Director or above, the Municipal
Commissioner is competent to approve the Road Development Plan/Circulation Plan and TDR and in
case of other ULBs shall obtain technical approval of concerned RDDTP for approval of Road
Development Plans/Circulation Plans and TDR. In case of Gram Panchayat falling in Development
Authorities Jurisdiction, the Commissioner/Vice-Chairperson/ Metropolitan Commissioner of the
concerned Development Authority is competent to approve and implement the Road Development
Plan/Circulation Plan and to issue TDR.

TDR Generation & Utilisation

Entitlement: The Competent Authority shall have the discretion in the matter of applicability of TDR.
The TDR shall not be allowed in unauthorized buildings / structures / constructions and shall be
considered only after the land is vested with the Local Authority/ Development Authority. Table 1 shows
the quantum of TDR generated upon surrendering land for the following purposes.

Table 1 TDR Generated For Areas Surrendered for Various Purposes

Purpose and TDR Generated
400% of Area Surrendered
I  Master Plan Road/Road Development Plan/Circulation network
 Traffic/transport infrastructure/Bus Rapid Transport System
 Affordable housing projects
 Urban infrastructure projects-water, sewerage, education etc.
200% of Area Surrendered
II  Conservation &development of lakes/water bodies/nalas foreshore
 Recreational buffer development, either side of Electrical Tower lines
100% of Area Surrendered
III  Clearance distance left for oil/gas pipelines
 Heritage buildings/precincts

Utilisation: The TDR may be arrived at on the basis of relative land value and equivalent amount in both
export and Import areas, as per the Registration Department records at the time of utilization. The TDR
certificate issued can be permitted to utilize/ dispose for construction of additional built-up area in any
ULB/UDA/CRDA (except capital city). For utilisation of TDR, two additional floors with setback
relaxations are allowed in the entire state excluding sites falling in old/existing built-up areas, congested
areas and settlement/gram khantam/abadi, TDR generated in such sites is not allowed to be utlitised for
constructing two additional floors:
 Non-High-Rise Buildings (upto 18m Height from ground level including TDR Floors)
 High Rise buildings

Other than that, the rest of the areas are considered as TDR receiving zones with two additional floors so
as to densify the less densification areas. Thus, decongestion of city core & re-densification of city
periphery is facilitated.

Implementation:
1. Year-wise spread of TDR: As per data received from Govt. of AP, TDR worth 743.5 acres of land
has been generated for various purposes during the 15-year period, from 2007-2022 in the State. Table 1
shows the year-wise spread of TDR generation in the state. Out of the total TDR generated, about 90
percent has been during the period 2015-2022 i.e. after bifurcation of the united state of Andhra
Pradesh. There has also been a marked increase in the utilisation of TDR during the last decade.
 Table 1 Year-wise TDR Generated and Utilised in Andhra Pradesh (Acres)
S.No Year TDRs Issued Land Acquired TDR Issued TDR Utilised Utilised %
1 2002 55 0.46 0.46 0.13 28.3
2 2003 47 0.45 0.45 0.17 37.8
3 2004 5 0.06 0.06 0.01 16.7
4 2005 3 0.03 0.03 0.02 66.7
5 2006 51 0.86 0.85 0.18 21.2
6 2007 24 0.58 0.58 0.15 25.9
7 2008 167 9.21 9.24 1.72 18.6
8 2009 155 6.29 6.56 1.17 17.8
9 2010 237 6.43 6.45 2.83 43.9
10 2011 570 8.79 8.80 4.20 47.7
11 2012 400 7.20 8.51 3.21 37.7
12 2013 329 8.32 16.02 8.37 52.2
13 2014 308 10.07 18.17 11.78 64.8
14 2015 171 7.40 11.79 9.19 77.9
15 2016 1038 13.39 21.92 13.35 60.9
16 2017 591 12.37 21.44 11.64 54.3
17 2018 912 33.76 92.81 58.11 62.6
18 2019 746 30.44 99.61 74.36 74.7
19 2020 202 16.55 64.03 54.73 85.5
20 2021 491 49.15 190.42 151.18 79.4
21 2022 739 38.23 152.88 77.35 50.6
22 2023 129 3.15 12.44 1.72 13.8
Totals 7370 263.16 743.52 485.56 65.3

2. Purpose-wise Spread of TDR: Table 2 shows the purpose-wise TDR generated in the state. About 82
percent of the TDR generated in the State during the period 2007-22 was for road widening followed by
17 percent for parks/public utilities.

Table 2 Purpose-wise TDR Generated in the State (Acres)

S. No Purpose TDR Issued (sq.m) TDR Issued (ac) %
1 Road Widening 24,59,828.72 607.82 81.75%
2 Reading Rooms 3,276.91 0.81 0.11%
3 Nalas 170.61 0.04 0.01%
4 Drain Construction 16,122.48 3.98 0.54%
5 Parks/Public Utilities 5,22,509.60 129.11 17.36%
6 Water Tanks/Treatment Plans 3,731.85 0.92 0.12%
7 Heritage Building 3,399.36 0.84 0.11%
Total 30,09,039.53 743.52

3. Geographical Spread of TDR: The ULB-wise land surrendered for public purpose and extend of
TDR granted is given in Table 2. The top five ULBs accounting for 46 percent of total TDR utilised is
given in Table 2. The Greater Vishakhapatnam MC, Andhra Pradesh Capital Region Development
Authority (APCRDA) and Vijayavada MC together account for more than one third of TDR generated
and utilised.

Table 3 TDRs-Granted and Utilized in the Top 5 ULBs/UDAs (2002-2023) – Major ULBs
S. No ULB/UDA Nos TDR Granted TDR Utilised % Utilised
1 Greater Vishakhapatnam 2789 114.03 (15.34) 84.34 (17.37) 73.96%
 2 APCRDA 987 89.01 (11.97) 45.86 (9.44) 51.52%
3 Vijayawada 736 78.97 (10.62) 43.90 (9.04) 55.59%
4 Guntur 390 31.36 (4.22) 19.48 (4.01) 62.12%
5 Kakinada 414 28.91 (3.89) 17.60 (3.62) 60.87%
Total 5316 342.28 (46.03) 211.18(43.5)  

Andhra Pradesh has 123 ULBs and 20 UDAs. In 2021-22, 27 ULBs (one-fifth of total) and 6 UDAs (one-
third of total) are making use of the TDR as an alternative to compensation for acquisition of land. Table
4 shows the ULB wise TDR generation in 2021-22. For 61 acres of land, TDR worth 238.41 acres was
generated in 2021-22. in 33 ULBs across the state. Tanuku Municipality, the 4th largest ULB in West
Godavari district has generated the maximum TDRs worth 47 percent of the total granted for the period
for lands. This is followed by Kurnool MC (14%) in Kurnool district and Tirupathi MC (9.8%) in
Tirupathi district.

Assuming an average guidance value of Rs. 10,000/- square yard, this would imply a reduction of 2067
crores in land acquisition cost for 214.5 acres of land (acquired since the coming into force of the new
land acquisition act in 2014), where TDR was generated in lieu of compensation). By the same yardstick,
the cost reduction would be about 600 crores in 2021-22.

Table 4 Area Surrendered and TDR Granted in 2021-22 (Acres)

S.N UDA/DA Area Surrendered TDR Granted
1 Anantapur MC 0.02 0.07 (0.03)
2 APCRDA 5.10 20.33 (8.53)
3 Bapatla Municipality 0.13 0.54 (0.23)
4 Bhimavaram Municipality 0.67 2.68 (1.12)
5 Bobbili Municipality 0.04 0.15 (0.06)
6 Chilakaluripet Municipality 0.06 0.24 (0.10)
7 Chirala Municipality 0.01 0.03 (0.01)
8 Chittoor MC 0.16 0.65 (0.27)
9 Eluru Municipal Corporation 0.05 0.21 (0.09)
10 Greater Vishakhapatnam MC 2.65 10.54 (4.42)
11 Guntur MC 0.94 3.76 (1.58)
12 Hindupur Municipality 0.02 0.07 (0.03)
13 Kadapa MC 0.51 2.05 (0.86)
14 Kadiri Municipality 0.00 0.01 (0.01)
15 Kakinada MC 1.92 7.60 (3.19)
16 Kakinada UDA 0.18 0.73 (0.31)
17 Kovvur Municipality 0.40 1.62 (0.68)
18 Kurnool MC 9.60 33.47 (14.04)
19 Kurnool UDA 1.22 4.86 (2.04)
20 Machilipatnam UDA 0.13 0.50 (0.21)
21 Mangalagiri Tadepalli MC 0.03 0.12 (0.05)
22 Nandigama Nagar Panchayat 0.03 0.14 (0.06)
23 Nellore MC 0.02 0.06 (0.03)
24 Ongole MC 0.25 0.99 (0.42)
25 Rajahmundry MC 0.39 1.59 (0.67)
26 Rajamahendravaram UDA 0.55 2.20 (0.92)
27 Ramachandrapuram Municipality 0.01 0.02 (0.01)
 28 Srikakulam MC 0.05 0.19 (0.08)
29 Tanuku Municipality 28.45 113.83 (47.75)
30 Tirupati MC 6.07 23.43 (9.83)
31 Tirupati UDA 0.29 1.18 (0.49)
32 Vijayawada MC 0.85 3.39 (1.42)
33 Vizianagaram MC 0.29 1.17 (0.49)
Total 61.08 acres 238.41 acres
Note: Figures in Parenthesis denotes percentages

Reforms: There is a real time Online TDR application that is developed for the issuance, utilisation and
transfer of TDR across State. Andhra Pradesh is the first state to have initiated the online system.
GUJARAT
Law/Policy/GOs: In Gujarat, the provision for TDR is given under the Gujarat Town Planning and
Urban Development (Amendment) Act, 20143. The Comprehensive Development Control Regulations
(DCR), 2017 as well as the 2013 Policy for in-site rehabilitation of slums situated on public land by PPP
under Mukhya Mantri GRUH Yojana under Gujarat Slum Areas Improvement, clearance and
rehabilitation Act, 1973 also incorporates the provisions of TDR.

Definition: Transferable Developmental Rights means transfer/trade/sale of developmental rights from

one land to another land. Such rights will be given in the form of certificates showing time limit and price
by Local Self-government or Development authority (Policy for in-site rehabilitation of slums situated on
public land by PPP under Mukhya Mantri GRUH Yojana under Gujarat Slum Areas Improvement,
clearance and rehabilitation Act, 1973). "Development right" means a right to develop the land or
building or both on any land to be acquired under section 20 to the extent as may be decided in the
development plan. The area development authority or any other authority for whose purpose land is
designated in the final development plan may acquire the land in lieu of any development right by
granting the owner against the area of land surrendered free of cost and free from all encumbrances;
(Section 2, Gujarat Town Planning and Urban Development (Amendment)Act, 2014).

Eligibility/Purposes: In Gujarat, TDR is used only for redevelopment purposes (slum and public
housing) unlike other states where it is being used extensively for alternative to compensation in land
acquisition for road widening and other urban infrastructure projects. As given above, TDR is being
issued in the state for largely three purposes;
 slum rehabilitation
 heritage conservation, and
 public housing redevelopment projects.
Both ULBs and UDAs are authorised to use TDRs as an alternate for compensation in land acquisition for
public purpose and within the MC limits. The beneficiaries can use TDR in the remaining portion of land
as well as other areas falling within the local planning where chargeable FSI is permissible.

TDR Generation and Utilisation

3
Section 20(1), GTPUDA, 1976: The area development authority may acquire the land,- (a) by an agreement, or;
(b) in lieu of any development right by granting the owner against the area of land surrendered free of cost and free
from all encumbrances; (c) under the provisions of the Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013."
Entitlement: The total TDR generated is the co nstruction Cost minus the plot value of remaining space
available after construction. In case of heritage conservation projects, TDR is provided for a Building‐unit
with Heritage Structures or Building, or for Building‐units within a Heritage Precinct notified by the
Competent Authority in the Heritage Conservation Plan. The heritage is classified on the basis of their
respective heritage value as per Heritage Conservation Plan and TDR is provided on the basis of the
respective utilized FSI, irrespective of the area of Building‐ unit. For heritage structures with highest
heritage value, 50 percent of total utilised FSI is granted as TDR and in case of other structures with
high/moderate heritage value, 30 percent of the total utilised FSI is granted as TDR. No TDR is granted
for non-listed structures.

Utilisation: While a maximum of 10 percent of the Floor Space may be used for extensions or alterations
to the existing notified heritage buildings (within maximum permissible FSI), the rest can be utilized
through TDR in zones where chargeable FSI is permissible.

Implementation: The total TDR generated and utilised in Gujarat state as a whole during the period
2019-20 to 2021-22 is given in Table 1. The figures are consolidated of eight MCs (Ahmedabad,
Gandhinagar, Surat, Vadodara, Rajkot, Jamnagar, Junagadh and Bhavnagar) and 14 UDAs (Ahmedabad,
Gandhinagar, Surat, Vadodara, Rajkot, Junagadh, Bhavnagar, Navsari, Anand Vallabhvidhyanagar
Karamsad, Khambhalia, Bhuj, Bharuch Anklesawar, Surendranagar Wadhwan, Bardoli.

Table 2 TDRs-Granted and Utilised in ULBs (2007-2022) – Major ULBs

ULB/UDA TDR Generated (Sqm) TDR Utilised (Sqm)
1 2019-20 213 16040
2 2020-21 4235 5144
3 2021-22 12043 74185
4 Total (2019-20 to 2021-22) 16491 95369
Grand Total
Note: The utilised TDR also belongs to those generated in the earlier years.

II States Implementing TDR in Select Cities

1. KARNATAKA
Law/Policy/GOs: Section 14B of The Karnataka Town and Country Planning Act 1961 provides for
Benefit of Development Rights. The Law was amended in 2004 to incorporate the provision and further
on in 2021 to change the quantum of TDR allowed. According to the provision, where any area within a
local planning area is required by a Planning Authority or local authority In a Local Planning Are if any
Public Authority requires any 'Area' for the public purpose, it shall notify the same in such manner as may
be prescribed and the owner of such 'Area' hands over possession of such 'Area' free from all
encumbrances to such Public Authority in lieu of any compensation, under the Right to Fair
Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (central
Act 30 of 2013) or any other law, he shall, notwithstanding anything contained in this Act or regulations,
be entitled to be granted Development Rights (DR) in the form of Notional land.

Definition: TDR is in the form of notional land transferred by the owner to a transferee, which may be
sold or disposed or utilized elsewhere in the Local Planning Area or any other area notified by the
Government. The DR of the ‘Area’ surrendered in the form of Notional land, shall be permitted to be
utilized as TDR, only after factorizing the market value of the originating plot and the receiving plot, as
specified in the terms and conditions; The "Notional Land" means the Development Rights in the form of
theoretical land area and not in the form of real/physical land area, in lieu of compensation;

Eligibility/Purposes: Compensation in the form of TDR is allowed when state government (Local
Authority/Development Authority) requires land for the following purposes:
  Road widening/formation proposed in Master Plan
 Infrastructure Projects approved by the Government (Transportation, Water Supply, Sewage,
Electricity, etc)
 Parking, Parks, playgrounds, and open spaces, or any other public places proposed in the Master
Plan/by Local Authority and redevelopment projects on private land
 EWS/LIG/ affordable housing/Slum redevelopment project on private land
 Other public purposes notified by the Government

Process: The Development Rights is calculated based on the land area or building area surrendered by the
owner to any Public Authority free from all encumbrances and without claiming any compensation. The
Karnataka law clearly specifies that if the owner does not agree to surrender his 'Area" required by a
public Authority for any public purpose, for the Development Rights and demands for monetary
compensation, then the public Authority may acquire such 'Area' by providing compensation as per the
provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013 (central Act 30 of 2013) or any other law prevailing.

TDR Generation & Utilisation

Entitlement: The Land or building area so surrendered shall be converted into 'Notional Land' to extent
specified in the Table below based on the value of the land determined on the basis of Market value
notified by the State Government under the Karnataka Stamp Act, 1957. In case of land, DRC in the form
of notional land is equal to two times of the Area surrendered in case of the following
 Road widening/formation proposed in Master Plan
 Infrastructure Projects approved by the Government
 Parking, Parks, playgrounds, and open spaces, or any other public places proposed in the Master
Plan/by Local Authority and redevelopment projects on private land
 EWS/LIG/ affordable housing/Slum redevelopment project on private land
 Other public purposes notified by the Government

For the building development rights, applicable on all types of buildings, the area considered for
quantum of Development Rights is the area surrendered limited to the allowable Floor Area Ratio
(FAR) for such building area. The Development Rights in the form of notional land is equal to two
times the land area derived by dividing the value of the building/portion of the building surrendered, by
the market value of the land/plot on which the building is situated.

Utilisation: The Development rights may be utilized within the same plot or in other area in the same
Local Planning area or as notified by the Government, by the owner or the owner of such Development
Rights may transfer the Development rights to a transferee which may be sold or utilized in any area as
prescribed within the Local Planning Area or as notified by the Government.

Implementation: Presently, TDR is implemented in only two cities in Karnataka, Bangalore and
Mangalore, in the former by the Bangalore Development Authority and the latter by Mangalore City
Corporation. The total TDR generated during the last three years, 2019-20 to 2021-22 is 11.74 acres out
of which TDR generated in Mangalore and Bangalore is 8.08 acres and 3.66 acres respectively.

Table TDR Generated and Utilised (Acres)

ULBs (MCs) TDR Generated TDR Land Savings
Utilized acquired (Cr.)
1 BDA 3.66
2 Mangalore City Corporation 8.08 0.37 (4.6) 4.4 73.52
 Total 11.74

2. Madhya Pradesh
Law/Policy/GOs:: The Madhya Pradesh Transferable Development Rights (TDR) Rules, 2018 were
framed in exercise of powers conferred by Section 85(1) and Section 24(3) of the MP Town and Country
Planning Act, 1973.

Definitions: “Transfer of the Development Rights (TDR)” means making available certain amount of
additional built-up area in lieu of fair compensation of the area relinquished or surrendered by the owner
of the land for the public purpose, so that owner can use extra built-up area either himself/ herself or
transfer it to another in need of the extra built-up area.

Eligibility/Purpose: The TDR rules extend to all the “Public Projects”, “Generating Areas” and
“Receiving Areas” declared under the 1973 Act. which are so declared under section 2 of the Madhya
Pradesh Nagar Tatha Gram Nivesh Adhiniyam, 1973 (No. 23 of 1973). The generating areas should be
public projects in the respective planning area including the following:
 public amenities and facilities
 recreation
 transportation
 slum rehabilitation
 public housing
 infrastructure
 any other special use by the Government and its undertakings
TDR is not allowed on land or buildings having historical importance.

Process: Both UDAs and ULBs are empowered to grant TDRs. It is necessary to the land owner to level
and fence the land with 1.5 m. barbed wire fence before surrendering. For DRC given in lieu of land
acquisition, the validity will remain for only ten years and if the certificate holder doesn’t use it or sell it,
then the certificate will be 'illegal'. The DRC can be used only in the 'Acquisition Area' and 'Impact Area'
declared by the state government. State government will declare those areas as 'Acquisition Area' where
the development work is comparatively low. At the same time, both the Metro Route and the 500-meter
area will be considered as 'Impact Area' so that there multi-storey building can be constructed. Where
land is part of project influence area notified as receiving area, the first 50 percent of maximum
permissible additional buildable area will have to be purchased from the project authority which is the
Implementing Agency and the remaining may be acquired through DRC.

Unlike other states, Madhya Pradesh TDR policy has a unique provision. The implementing agency
generating TDR has to propose for the notification of the influence area along with the following
assessments:
 Generation of demand for additional floor area space factoring in the receiving capacity generated in
the influence area from the project impact;
 Incremental value creation and appreciation of land value through the project;
 Absorption of the DRC issued in lieu of land acquisition in the generating area.

TDR Generation and Utilisation

Entitlement: For surrender of the gross area of the land which is required under the Public Project, free
of cost and free from all encumbrances, the owner is entitled for TDR, the formula for which is given
below:

Value of TDR in terms of Additional Y x Area surrendered under the Public Project (in
Buildable Area (in sq.m) (B) = sq.m)
Y = Multiplication factor as decided by the Government on the recommendation of the Implementing
Agency, which shall not be less than two.
Utilization: Any DRC may be utilized on one or more plots or lands in the receiving areas or influence
area. The equivalent quantum of TDR to be permitted on receiving plot is arrived by the following
formula:
A = (Rg/Rr) x B
Where;
A = Equivalent quantum TDR permitted on receiving plot
Rg = Rate in Rs/sq.m in Generating Area as per Collector guideline in generating year.
Rr = Rate in Rs/sq.m in Receiving Area as per Collector guideline in Generating year.
B = Transfer of Development Rights debited from DRC in sq.m
The utilisation of TDRs shall be in multiples of 50 square metres only except the last remainder.

Implementation: According to data received from the state, Indore UDA is implementing TDR under
their jurisdiction. Till now, 11.35 ha of lands has been acquired in exchange for TDR.

3. Tamil Nadu
Law/Policy/GOs: TDR is being implemented in Tamil Nadu in the capital city of Chennai since 2008,
with the second master plan. To give statutory backing to the TDR, the Govt. of Tamil Nadu amended the
Tamil Nadu Town and Country Planning Act, 1971 in 2018. Subsequently, the Housing and Urban
Development published the Tamil Nadu Transfer of Development Rights Rules, 2019 (vide Notification
No. G.O. Ms. No. 198). Presently, the Chennai Metropolitan Development Authority (CMDA) and Metro
Rail Corporations in the State are granting TDR.

Definitions: The Tamil Nadu Amended Act in Section 35-A defines Transfer of development rights thus,
“Where any area is required by a planning authority for a public purpose and the owner of any site or land
which comprises such area, surrenders it free of cost and hands over possession of the same to the
planning authority free from encumbrances, or maintains the land or restricts development on the land as
per the requirement of the Government, the planning authority may permit the transfer of development
rights in proportion to the land area surrendered or the restrictions placed on developments.

Eligibility/Purposes: Planning authorities may acquire land required for the development of a regional
plan, master plan, detailed development plan, new town development plan, or re-development or
improvement of an area within their jurisdiction and grant TDR in lieu of compensation. The purposes
eligible for granting of TDR as specified in the 2019 TDR Rules is given below:
 Forming new road and widening of the existing road proposed in Development Plans approved under
the Act or notified by a government department, local authority or by a government agency;
 Traffic and transport infrastructure development
 Urban infrastructure development
 Conservation as heritage sites/buildings/precincts or as natural feature areas;
 Other purposes notified by the Government, from time to time.

Process: TDR is granted only after such lands are surrendered to the Local Authority/ Government/
Government Agency by a registered deed. The TDR is not permissible if the possession of the land is
taken after passing of an award or based on mutual agreement. It is also not permissible if there is
compulsory reservation of space for public purpose or recreational uses or economically weaker section
or social housing and in the case of subdivisions, layouts, group developments, high rise buildings or non-
high rise buildings or such other developments prescribed in the Tamil Nadu combined Development and
building Rules, 2019. If the floor space index eligible for the land surrendered is availed or received fully
in the remaining part of the available site itself, then the Development Right Certificate shall not be
issued or if floor space index is availed partly in that site, the DRCe shall be issued for the balance
portion. The transfer of development rights value may be adjusted towards regularisation charges and
premium floor space index charges.
TDR Generation & Utilisation
Entitlement: The owner of the land shall be entitled for TDR in terms of the value of the land
surrendered on the basis of the guideline value for the surrendered site or if the guideline value of the site
is not available, the GV of lands surrounding such land.

S.No Area Entitlement

1 Area surrendered for road formation, 2.25 times guideline value of the
widening/public infrastructure project. surrendered land
2 Slum household rehabilitated by the Slum 30 sq.meter of FSI of the
clearance board. house hold.
3 Conservation as heritage site / building Guide line value of equivalent land

Utilisation: TDR can be utilised in the remaining portion of land or in any local planning area. If the
floor space index eligible for the land surrendered is availed or received fully in the remaining part of the
available site itself, then the Development Right Certificate shall not be issued or if floor space index is
availed partly in that site, the Development Right Certificate shall be issued for the balance portion. The
TDR Values are calculated as per the following formula:
1. TDR terms of land value in the generating site = extent of the site surrendered x 2.25 times GV at
generating site at the time of utilisation of TDR.
2. TDR in terms of floor space credit = extent of the site surrendered x 2.25 times guideline value
generating site at the time of utilisation of TDR x FSI at generating site.
The utilisation of development rights shall be in multiples of 10 sq.mts., only except the last remainder.
The DRC can be utilized only in the areas notified for the purpose and subject to the conditions contained
in the DR. To arrive at the development right value credit, GV of the land surrendered and the GV value
of the land at the utilising site is taken for the calendar year of utilisation. The FSI at the utilising site
shall not exceed the permissible FSI as per the development regulations.

Implementation: TDR is being implemented only in the CITY of Chennai. In Tamil Nadu, TDR is
mandatory and the sole entitlement if the lands are reserved for road widening, slum rehabilitation and
metro rail. The Annual actual TDR generated during the last three years from 2019-20 to 2021-22 is
given below in Table 2.

Table1 Annual TDR Generated & Utilised (Sqm) -CMDA

Duration Generated Utilised Saving (Cr.)
2019-20 1485.70 NA
2020-21 3403.39 28.76
2021-22 5198.67 21.46
Total 10087.76 50.22

Table 2 shows the purpose-wise TDR generation of 5.79 lakh square metres or 140 acres, 90 percent of
which has been for road widening. This however reflects the total area for the mentioned purpose. In the
other states, TDR generation data reflects the actual TDR granted and consented by the landowner in lieu
of compensation. In Tamil Nadu, TDR is not considered substitute of monetary compensation but the
only option for road widening.

Table: TDR Generation and Utilised based on Purpose

S. No Purpose TDR (sq.m) TDR (Acre)
1 Road Widening 5,46,293 (96) 135
2 Special TDR for slum rehabilitation 20,520 (3.6) 4.2
3 Metro Rail 3,038.27 (0.5) 0.8
Total 5,69,851.27 140
 CMDA has initiated a ‘Study on land value and density distribution in Chennai Metropolitan Area’ under
World Bank assisted Tamil Nadu Housing and Habitat Development Project (TNHHDP). The key objective
of this study is to collect information on the spatial distribution and temporal trend of land value and density
across the CMA and use such information to make inferences on urban development hotpots and urban
investment needs. The Study is expected to provide valuable insights to expanding the use of TDR.

3. RAJASTHAN
Law/Policy/GOs: In 2012, the Urban Development, Housing and Local Self Government Department, Govt.
of Rajasthan came out with the Rajasthan Urban Area Transferable Development Rights (TDR) Policy,
2012. Both Development Authorities and ULBs are authorised to grant TDR.

Definition: TDR is defined as land development rights (permitted to be used on new and existing
buildings) issued by the ULBs in the form of a certificate regulated under the building byelaws or in
conjunction with the TDR guidelines that are periodically framed d by the state government from time to
time. TDR enables transfer of development potential partly or fully from one plot to another

Eligibility/Purposes: TDR certificate is granted in lieu of land surrendered by owner/developer, free of

cost and free from all encumbrances for the development of the following:
 Affordable Housing
 Green spaces/parks/open spaces/playgrounds etc. as in Master Plan
 Road and road widening
 Public parking lots
 City level facilities as per Master Plan
 Slum rehabilitation scheme
 Other purposes as specified by State Government
A developer/owner/lessee can use TDR fully/partly or he can sell off or dispose of the same to other
parties fully or partly. The policy conceptualised introduction of TDR in the major towns such as Jaipur,
Jodhpur, Udaipur, Kota, Bikaner, Ajmer, Alwar, Bhilwara, Bharatpur, Bhiwadi, Shahjahanpur,
Sriganaganagar besides towns covered under phase 1 of the States affordable housing policy namely
Dausa, Chaksu and Kuchaman city.

Lands prohibited by Court and lands under acquisition are ineligible for grant of TDR. Rajasthan also
provides a list of No TDR zones in the policy (given below:
 Area included in walled city in the Master Plan
 Congested areas with traffic intensity notified by government (like MI Road in Jaipur).
 Restricted area notified by the concerned ULBs/ State Govt.
 Beyond the prescribed height as per prevailing building regulations.
 Structures listed as heritage precincts/structure identified by ASI/State Archaeology.

Process: The owner will have to demarcate the land and for facilities in the master plan erect pillars at
every 30m and on every corner and each pillar shall be 1m*0.5m*0.5m. While technical requirements for
grant of TDR varies in different states, in case of Rajasthan, there are also some requirements that have
cost implications, as given below:
 A processing fee at the rate of 1% of actual valuation of TDR value on the basis of prevailing DLC
rate of the area from where TDR is generated is to be charged at the time of issue of TDR certificate
(except in case of affordable housing and slum rehabilitation scheme.
 The advertisement charges for inviting public objections to verify the ownership of land and
objections against change of land use (if not in conformity with the master plan) is also to be paid by
the developer/ owner of the land.
The TDR shall be revalidated after 15 years for next 5 years subject to payment of processing fee of
revalidation @ 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.

TDR Generation & Utilisation

Entitlement: For lands surrendered for roads, public parking facilities, green space, full TDR subject to
permissible maximum FAR (2.25) is allowed. In case of affordable housing/Slum Rehabilitation
Schemes, the TDR shall be calculated on the total plot area being reserved for affordable housing project
including EWS/LIG subject to the norms as prescribed in housing policy. The upper ceiling of the TDR
shall be 1.5 times of the total project area. The developer shall be allowed to have a double of the
permissible FSI and shall be bound to consume the maximum FSI on the proposed project site keeping in
view of the planning norms. The unutilized FSI shall be taken as TDR, which shall not be more than 1.5
times of the total project area. TDR will be based on the present use of the land as per lease deed/ patta (if
agriculture land is surrendered than TDR will be calculated as standard FAR of residential use whereas in
case of abadi land the TDR will be calculated as standard FAR of the use for which patta/ lease deed has
been issued.

Utilisation: A comparison of DLC rates (prevailing at the time of utilization/ transfer) of the specific use
of the area from where TDR is generated and DLC rates (prevailing at the time of utilization/ transfer) of
specific use in TDR receiving area shall be compared to calculate the proportionate transfer of TDR. The
TDR shall be subject to proportionate increase or decrease in DLC rate. For example, if the residential
DLC rate in generating zone is Rs. 2,000/- per sq.m, from where TDR has generated and the residential
DLV rate is Rs. 20,000/- per sq.m, in receiving zone then the proportionate TDR to be transferred shall be
1/10th of the total TDR generated subject to minimum of 10% of total TDR. TDR generated in an urban
area can be utilized within the same urban area only. Any

Implementation: According to data received from the state regarding TDR generation, 1.14 lakh sqms or
about 28 acres of TDR has been generated in the last three years in the state.

4. TELANGANA
Law/Policy/GOs: TDR implementation started in the State in 2006. The state has issued GOs from time
to time improving the TDR entitlement. The first GO was issued in 2006 (GO Ms. No.86) providing for
100 percent TDR in Master Plan Roads; 50 percent for Lakes/Water Bodies and Heritage Buildings). This
was subsequently amended in the G.O Ms. No.168 in 2012 where TDR was enhanced to 200 percent for
Master Plan roads widening, 100 percent for Lakes/Water Bodies and Heritage Buildings. The latest
amendment in 2017 (GO MS 330) further enhances it and is discussed below. The Building Rules, 2012
that is applicable for all UDAs and ULBs in the State provides for these. TDR is implemented in
Hyderabad by both Hyderabad Metropolitan Development Authority (HMDA) and Greater Hyderabad
Municipal Corporation under their respective areas of jurisdiction

Definition: TDR means an award specifying the built-up area an owner of a site or plot can sell or
dispose or utilize elsewhere, in lieu of surrendering land free of cost which is required to be set apart or
affected for public purpose as per the Master Plan or in road widening or covered in recreational use zone,
etc. The award is in the form of a TDR certificate issued by the competent authority.

Eligibility/Purposes: TDR can be awarded for the three following purposes:

 Master Plan Road/ Road Development Plan and Developed/ Peripheral Road in Group Development
Schemes
 Conservation and development of lakes/ water bodies/ Nalas foreshores & Recreational buffer
development with greenery etc.
 Heritage buildings and heritage precincts
 In addition to the above, Telangana is also unique in allowing for granting of TDR for the following
purposes:
 RoW under Electrical lines: TDRs as applicable to road widening cases can be granted wherever the
road is not feasible and green belt can be provided below the HT line in addition to 10% open space.
 Public access road: TDR applicable to road widening cases shall be allowed in cases where aa
thorough public access road of 12m width with 2 lane black-topped is to be developed within n
applicant’s site for accessibility of other sites and lands located in the interior.
 Amalgamation of plots: To encourage amalgamation of plots in congested areas /slums (maximum
plot size before amalgamation being 100 Sqm and minimum plot size after amalgamation being 300
Sqm) can be allowed TDR equivalent to one additional floor

Process: TDR is generated only when such lands are transferred to the local body/UDA by way of
registered gift deed. The utilisation of development rights shall be in multiples of 10 sq.mts., only except
the last remainder. The GHMC has established an Online TDR Bank, which allows for online digitized
certificates and acts as a platform for buyers and sellers, including between different government
departments. 

TDR Generation & Utilisation: The quantum of TDR generated up on area surrendering for various
purposes is given in Table 1(as per GOMs No. 330).

Table1 Percentage of Area surrendered for TDR Generated

S. No Purpose TDR as % of
Area
Surrendered
1 Master Plan Road/ Road Development Plan and Developed/ Peripheral Road 400%
in Group Development Schemes
2 Conservation & development of lakes/water bodies/Nalas foreshores,200%
Recreational buffer development with greenery etc
3 Heritage buildings and heritage precincts 100%

Utilisation: TDR may be arrived at on the basis of relative land value or GV and equivalent amount in
both export and import areas. According to the Rules, the competent authority shall have the discretion in
the matter of applicability of TDR. The TDR can be allowed to be utilized for construction of two
additional floors over the normal permissible floors without the requirement of additional setbacks or
higher road width for example, in normal course the maximum height permissible on roads 12m (40 ft)
width is 24m, but with TDR two additional floors can be allowed without insisting additional setbacks
and without insisting higher road width. In 2022, the State government amended the Comprehensive
Building Rules-2012 allowing redemption of the TDRs anywhere within the Hyderabad Metropolitan
Development Authority (HMDA) limits irrespective of the agency issuing those certificates. Earlier,
the issuance of TDR was limited to areas up to Outer Ring Road (ORR) limits. The buildings that are
seeking regularisation under Section 455A of HMC Act would be considered for granting permissions
with utilisation of equivalent value of TDRs (equivalent to 33 per cent compounding fee) subject to
the satisfaction of all other rules and regulations.

Implementation:

Table1 TDR Generated and Utilised (GHMC)

TDR TDR Lands Amount
S. No. No. of TDRs Generated Utilised Extent Saved
(Acres) (Acres) Acquired (Crores)
1 258 (2019-20) 102.31 1028.33
2 133 (2020-2021) 102.61 1230.1
 3 105 (2021-2022) 51.15 586.29
Grand Total 256.07 2844.72

Table: TDR Generated and Utilised (HMDA)

TDR Amount
Lands Extent
S. No. No. of TDRs Generated Utilised Saved
Acquired
(Acres) (Crores)
1 2020 0.70 0
2 2021 38.95 2.40 (6.15)
3 2022 117.14 0.07(0.06)
Total 156.79 2.47 (1.6)

3.States with TDR Policies (Yet To be Implemented)

1. ASSAM
Law/Policy/GOs: The Govt. of Assam vide notification dated 28.09.2022 notified Policy for grant of
TDR under Section 11of Assam Town and Country Planning Act, 1959. The policy extends to the
master plan areas of whole of Assam except for areas under Autonomous Districts, provided that if
any District Council desires that all or any of the provisions of this Policy should apply to the
Autonomous District concerned, a notification may be issued to that effect and this Policy shall then
extend to that Autonomous District subject to such exceptions or modifications as may be specified in
the notification.

Definition: TDR is a compensation in the form of FAR or Development Rights which shall entitle the
owner for construction of a built-up area subject to provisions in this policy. This FAR credit shall be
issued in a certificate which shall be called as Development Right Certificate (DRC). The DRC shall
provide in figures and in words, the FAR credit in square meters of the built-up area to which the owner
or lessee is entitled, the place from where it is generated, and the rate of that plot as prescribed in the
Circle Rates issued by the Revenue Department for the concerned year. Such DRC will be issued by the
Authority.

Eligibility/Purposes: All zones in Master Plan shall be TDR emanating zones and zones except
restricted area zones, conservation zones, water bodies where development is not allowed shall be TDR
receiving zones. In the master plan area, TDR is in lieu of compensation is to be generated for the
following purposes:
 Lands under various reservations for public purposes, new roads/widening etc.
 Lands reserved for public amenities (solid waste processing sites, water supply etc) Unutilized FAR
of any structure/precinct declared as a Heritage structure
 Affordable Housing (subject to a ceiling of maximum FAR of 325)
 Conservation or restricted area zones
 Plots falling under Water bodies

An additional requirement envisaged is that of constructing/erecting a brick/stone wall up to 0.60 metre

above ground level. If the compensation paid in the form of FAR to the owner is to be utilized on
unaffected part of the same land parcel,the procedure of DRC is not required.

TDR Generation and Utilisation

Entitlement: Landowners surrendering the land free of cost/encumbrances, are entitled to TDR at the
rate of 2 times the surrendered area in Non-CBD Area and 3 times in CBD Area. Only plot area is
considered for generation of TDR. An additional i ncentive T D R i s a l s o e n v i s a g e d to the extent of
I 0%, 8%, 5% and3% of the surrendered land area to the land owners who submit the proposal for grant
of TDR within I, 2, 3 years and 5 years from the notification respectively. For affordable housing, an
 additional 10 percent of TDR is envisaged.

Utilisation of TDRs: DRCs can be utilized for the extent required with application for development
permission in CBD/non-CBD area earmarked on the Master Plan but subject to z oning regulations. The
equivalent quantum of T D R is permitted on receiving plot shall be governed by the formula given
below: -
X = (Rg/Rr) x Y Where,
X = Permissible Utilization of TDR/DR in sqm on receiving plot
gRg = Rate for land in Rs. per sq.m. as per Circle Rate of generating plots in generating year Rr=Rate
for land in Rs. per sq.m. as per Circle Rate of receiving plot in generating year
Y = TDR debited from DRC in sq.m.

The total maximum permissible built-up area and utilization of TDR R) on receiving plot shall be, subject to
the road width. Any DRC may be utilized on one or more plots or lands whether vacant. or already
developed fully or partly by erection of additional storeys, or in any other manner consistent with the
prevailing Master Plan and existing building rules/bye-laws. All zones are receiving zones except those
where restrictions are imposed in the Master Plan viz. green belt zones, water bodies, reserved forest,
eco zones, water bodies, heritage zones, flood prone areas and those zones where permissible basic
Zonal FAR is 50 or less is restricted.

2. HARYANA
Law/Policy/GOs: In 2019, Haryana came out with the public notice of a new policy for grant and
utilisation of TDR under the provisions of Section 6A read with Section 9A of the Haryana Development
and Regulation of Urban Areas Act, 1975. This policy intends to make it simple for such land-owners
wishing to surrender land that is required for critical infrastructure needs of the development plan in
return of a TDR Certificate.

Eligibility/Purposes: To enable aggregation of land for integrated infrastructure development within the
urbanisable limits, a TDR Certificate can be issued on such land/ site designated for the following
purposes based on the approved sectoral plan:
 Sector Roads & Green Belts [SRGB] provided in the development plans
 Sectoral Plan Road Pockets [SPRP] or as sub-arterial roads of development plan
 EDC Works site [EDWS] earmarked as College, Hospital in the sectoral plan.
 Open Space Zone [OS] in the development plan
 Public & Semi-Public Zone (PSP)
Process: A provisional offer is first issued if the application by the land-owner for TDR is found in order
following which the land has to be transferred in favour of State Government by duly paying the stamp
duty and also delivering possession of the said land. The landowners are required to give an undertaking
that no claim against comparison of benefits accrued under the present TDR policy and the
compensation/enhancement paid for the acquisition of balance land for any such project shall be made.
the land surrendered for SRGB/ SPRP/ EDWS /OS/PSP shall be kept safe by fencing by the applicant(s)
at the time of grant of TDR certificate.

TDR Generation and Utilisation

Entitlement: Haryana policy has a unique provision of TDR entitlement by providing for normalising all
TDRs issued in different corners of the Development Plan to bring them at the same level and make them
comparable. The TDR is to be issued after conversion of the site area in the form of a notional land by the
following formula:

Calculation of Notional Land for which TDR Certificate is to be issued:

Land Rate Index as per weighted average
Notional = collector rate for the surrendered land applicable * Area of land * Land
Land (in as on 1st January of the calendar year of surrendered Use
 acres) application submission (in acres) Index

For ‘Land Rate Index’, the collector rate/GV of vacant agricultural land of the 1st January of the calendar
year of application is considered for the purpose of grant of TDR certificate irrespective of the date on
which it is eventually utilized. The Land Use index, varying from 1.5 to 2 based on the eventual land use
of the surrendered land is made use of for arriving at the index (Table 1).

Table 1 Land Use Index of Surrendered Land for Notional Land Value Calculation
S. No Land Use of surrendered land Land Use Index
I Land/site designated as SRGB; 2.00
SPRP in Residential/Commercial/Special zones 2.00
SPRP in Industrial/Public & Semi Public Zones 2.00
II EDC works sites approved in the sectoral plan 1.75
Open space zone other than any included above 1.75
II Public & Semi Public zone (PSP) 1.5

Haryana TDR Policy is unique in mandating certain minimum area norms for consideration of TDR for
certain purposes. For open spaces, the minimum area of land to be surrendered shall be 5 acres and for
EDWS/PSP, a minimum of 2.5 acres approachable from minimum 4 karam revenue rasta. For SRGB and
SPRP, there is no minimum area norms. The TDR Certificates carry an FAR of 2.0.

CONSTRUCTION AMENITY TDR:

When external development works are carried out on land already vested in the Govt and constructed
amenity handed over free of cost to the concerned Department, a construction amenity TDR is granted for
utilisation in the same development plan as given below:

Construction Cost of construction as per Average Weighted Collector

Amenity TDR rates of construction ÷ rate for the land as on 1 st
(Sqm) = specified specified in PWD January of Calendar Year when
plinth area rates / Haryana construction is commenced * 2.0
Schedule of Rates (in Rs.)

Utilisation: For the purpose of availing the benefit of development rights on the site receiving the TDR,
the 'notional land of TDR certificate' shall be converted into 'notional land of the receiving based on the
following formula:

Notional land Notional Land of Land Rate Index (Weighted average collector rate for
of Receiving TDR Certificate (in ÷ the receiving site applicable as on 1 st January of
Site = acres) Calendar Year of application submission in which
TDR is to be utilised

Any TDR certificate issued in a specific development plan shall be valid for only in the same
development plan. The additional FAR granted by the TDR varies The Additional FAR can be availed by
the applicant or by the purchaser of TDR Certificate on the following types of projects to the following
extent:
Sr Type-Colony/ Applicable Applicable Density Max FAR with Max Density
No Site/ Project FAR (ppa) TDR (ppa) with TDR

L GH L50/L75 300-400 3.0 Existing +200

2. AGH 2.25 750-900 3.0 Existing + 175
3. HDGH 1.75 450 3.0 Existing +200
4. TOD (GH) 3.5/2.5 600/430 (±10%) 5.0/4.0 Existing +150
 5. CL 1.75 NA 3.0 NA
6. TOD-CL 3.5/2.5 NA 5.0/4.0 NA
7. NILP-CL 3.0 NA 4.5 NA
8. MLU 1.75 80 3.0 Existing +70
9. TOD-MLU 3.5/2.5 NA 5.0/4.0 NA
10. NILP-R 1.25 300 2.5 Existing +125
IL CP/CC 2.5 NA 5.0 NA
12. TOD(IT/ITES) 3.0/3.5 NA 4.5/5.0 NA
13. IILP-IND LO NA 2.0 NA
14. CS/ 1-CLU L0/1.5 NA 2.0 NA
15. Residential Plot LO to L65 18 2.4/2.64 (as No change
applicable)
Notations:
1. SRGB=Sector Roads and Green belts along such Sector roads;
2. SPRP=Sectoral Plan Road Pockets;
3. EDWS=Sites of EDC Works shown in Sectoral Plans in all land use zones
4. R=Residential Zone;
5. C=Commercial Zone;
6. S=Special Zone;
7. IND=Industrial Zone;
8. INS=Institutional or Public & Semi-Public Zone;
9. GH=Group Housing Components (1.5/1.75 FAR) in such colonies where permitted,
10. AGH=Affordable Group Housing Component in all such colonies where permitted
11. HDGH=High Density Group Housing Project as provided in development plan
12. TOD-GH=Group Housing Licence under TOD
13. CL=Commercial Components in all colonies where permitted or Commercial CLU
14. TOD-CL= Commercial Licenced Colony under TOD
15. NILP-CL= Commercial Licence granted under the NILP Policy dated 26.10.2015
16. MLU= Mixed Land Use Licence granted under policy dated 03.01.2014
17. TOD-MLU= Mixed Land Use Project under TOD Policy
18. NILP=Residential Licence granted under New Integrated Licencing Policy dated 26.10.2015
19. CP/CC/ IT-ITES= Cyber Park/Cyber city/ IT or ITES Units
20. TOD-IT/ITES= IT/ITES Project under TOD Policy
21. IILP-IND=Industrial Component under IILP policy dated 11.10.2017.
22. CS=Community Sites in licenced colonies
23. I-CLU= CLU Projects for Institutional Use
24. Res. Plot= Residential Plot in a Residential Plotted colony

3. JHARKHAND
Law/Policy/GOs: The Jharkhand Transferable Development Rules, 2017 were published by the
government exercising the powers derived by Section 590 and 441 (5) pf the Jharkhand Municipality Act,
2011. The Rules are applicable in all ULBs in the state and the building byelaws are deemed to be
amended to the extent provided under the rules.

Definition: TDR Certificate means certificate issued by the Competent Authority to an owner or lessee of
land, permitting him/her to exercise Transferable Development Right in accordance to the provisions of
the above rules.

Eligibility/Purposes: The Rules were formulated to facilitate the landowners to surrender to surrender
their lands to the authority in lieu of consideration of development right for the lands to be used for public
roads, drainage, open spaces, park, community building, recreation areas etc, as earmarked in the master
plan by ULBs or by the Urban and Housing Department (as per Jharkhand Affordable Housing Policy,
2016).

Process: TDRs can be issued by both the ULBs and UDAs in the state. The policy elaborates on the
process of implementation including publication of notification in newspapers, local enquiry of land
records/ownership, invitation of claims etc. with relevant formats. Notably, the policy also progressively
integrates the requirements of the special tribal laws by incorporating the provision that “No application
for grant of TDR shall be considered if land belonging to SCs/STs, if prior approval from competent
authority under Santhal Paragna Tenancy Act and Chhotanagpur Tenancy Act, which protects the rights
of the communities in land is not taken.

TDR Generation and Utilisation

Entitlement: The TDR is issued to take up development on receiving plot which is permissible over and
above the base FAR for that plot. The total maximum permissible built-up area and utilization of TDR on
receiving plot is subject to road width. The TDR allowed for old area and new area are given in Tables 1
and 2.

Table 1 TDR allowed for Old Area

Category Road Width FAR as per Jharkhand Building Max Admissible FAR with
(m) Byelaws, 2016 TDR for residential and
Residential Non-residential non-residential
0-I 3.6 – 4.8 1.5 Nil Not allowed
0-II 4.8 – 6.1 1.8 Nil Not allowed
0-III 6.1 – 7.5 2.0 2.0 2.15
0-IV 7.5 – 9.1 2.5 2.5 2.70
0-V 9.1 – 12.2 2.5 2.5 2.75
0-VI 12.2 – 18.3 2.5 2.5 2.80
0-VII Above 18.3 2.5 3.0 3.0 and 3.5

Table 2 TDR allowed for New Area

Category Road Width FAR as per Jharkhand Building Max Admissible FAR with
(m) Byelaws, 2016 TDR for residential and
Residential Non-residential non-residential
N-I 6.1 – 7.5 2.0 2.0 2.20
N-II 7.5 – 9.1 2.5 2.5 2.75
N-III 9.1 – 12.2 2.5 2.5 3.0
N-IV 12.2 – 18.3 2.5 2.5 2.90
N-V 18.3 – 24.4 2.5 3.0 3.10 and 3.60
N-VI Above 24.4 3.0 3.0 3.60

Utilisation: The holder of the TDR can utilise it in the remaining portion of the area surrendered or
anywhere else in the state either by himself or by way of transfer to any other person. As in the other
states, the movement of TDR from the sending plot to the receiving plot shall be in proportion of
prevailing benchmark valuation rate as specified in the Jharkhand Stamp Rules. For e.g., if the benchmark
of sending plot is Rs. 1000 per sqm and that of the receiving plot is Rs. 10000 per sqm, then the
proportional TDR is to be transferred shall be 1/10th of the total TDR generated.

4. ODISHA
Law/Policy/GOs: The Odisha Transferable Development Rights Rules, 2015 was published deriving
power under Section 125 of the Odisha Development Authorities Act (ODA), 1982. These extend to all
development areas declared under the ODA, 1982.
Definition: “Transferable Development Rights (TDR) Certificate” means a certificate issued by the
Competent Authority to an owner or a lessee of the land permitting him to exercise transferable
development rights in accordance with the provisions of these rules. “Sending Plot” means revenue plot
of land or part thereof which is proposed to be surrendered to competent authority in lieu of TDR
Certificate. “Receiving Plot” means revenue plot of land over which TDR certificate is proposed to be
consumed.

Eligibility/Purposes: The land which is reserved for building amenities as per approved development
plan is eligible for award of TDR. TDR can also be granted for incentivising development of affordable
housing schemes or slum redevelopment projects

Process: The TDR Certificate is valid for 5 years and can be revalidated for a further period of 5 years.
The TDR Certificate shall be shall be registered under the Registration Act between original land owner
and authority but no stamp duty shall be payable. Some specific features of the Odisha TDR policy that
merit attention is given below:
 TDR Certificates can also be issued to DAs, ULBs or any other government agency who can either
utilise these in their projects or sell it through public auction.
 The Odisha Rules specifically excludes lands which are under acquisition under the RFCTLARR Act,
2013.
 In states with scheduled areas like MP and Jharkhand, TDR is granted to tribals in specific region only
after approval by competent authority. However, in case of Odisha, the requirement for approval by
competent authority under specific rules is extended to all members of SC and ST community though
there exists lack of clarity of the specific law(s) under which approval is sought.

TDR Generation and Utilisation

Entitlement: The owner or lessee of lands reserved for building amenities such is eligible for TDR
equivalent to permissible FAR of 2 (two) for that plot. For e.g. if 10,000 square feet of land is surrendered
to the Authority, 20000 square feet of TDR is granted. TDR is also granted to incentivize the construction
of affordable houses and re-development of slums (to be governed by the scheme/policy of the
government);

Utilization: The TDR can be utilised to take up development on the receiving plot over and above the
base far and within the maximum permissible FAR. The Movement of TDR from the sending plot to
receiving plot shall be in proportion of the prevailing Benchmark Valuation rates as specified in Odisha
Stamp Rules, 1952, as amended from time to time, which shall be subject to proportionate increase or
decrease in benchmark rates. (Illustration: If the benchmark valuation of sending plots is Rs. 1000 per
sq.m and for receiving plot, it is Rs. 10,000 per sq.m then the proportionate TDR to be transferred shall be
one-tenth of the total TDR generated subject to maximum permissible FAR prescribed for the receiving
plot.

5. UTTARAKHAND
Law/Policy/GOs: In 2022, the Housing Department, Govt. of Uttarakhand issued a comprehensive TDR
Policy that covers all aspects of the operationalisation of the instrument.

Definition: TDR is compensation in the form of Floor Area Ratio that permits the owner to construct
additional built-up area in lieu of land relinquished or reserved for other purposes as stated by the
government, subject to provisions in building bye-laws or government recommendations. This FAR credit
is issued in a certificate which is called as DRC. DRC issued by the competent officer, the FAR credits in
square metres of built-up area, place from which it is generated, and rate of plot, and can be used at
remaining part of building or other plot as specified in Master Plan/Zonal Plan/ Local Area Plan/ Town
Planning Scheme/ Influence Zone Plans.
Eligibility/Purposes: Compensation in terms of TDR is allowed for the following purposes:
 Land under various reservations for public purposes, new roads, road widening etc. which are
subjected to acquisition or Lands under any deemed reservations proposed in the Master Plan/ Zonal
Plan/ Local Area Plan/ Town Planning Scheme/ Influence Zone Plans of TOD or s intended by the
Government.
 Lands under deemed reservations proposed in the master/zonal/local area plans/town planning
schemes/influence zones of TOD by government
 Development or construction of the amenity on landUnutilized FAR of any structure or precinct or
area which is declared as Heritage Structure or Precinct

Areas Restricted: The following are the areas restricted from utilisation of TDR:
 No development zone in Master Plan / Green zone/ Reserve Forest Area/ Sanctuary zone/ Land Slide
zone and Bio Diversity Park etc.
 Area within flood control line/ prohibitive zone by National Green Tribunal/ Courts
 Road width less than 6 meters in hills and 9 meters in plain
 Area having developmental prohibition or restrictions imposed by any notification
 Area in the periphery of 100m of notified Heritage Buildings

TDR Generation and Utilisation

Entitlement: The Entitlement for TDR as per the policy is given below in Table 1. TDR is granted
equivalent to the affected built up area of land.

Table 1 Entitlement of TDR in Uttarakhand

S. No Area Designated on Master Plan/ Zonal Plan/ Local Entitlement of TDR
Area Plan/ Town Planning Scheme/ Influence Zone
Plans of TOD
1 Less dense built-up area or Less density area or non- 2 times the area of surrendered land
Congested area
2 High Built-up area or Core Congested Area 3 times the area of surrendered land
TDR Certificates shall be provided for the preservation/ reservation/ conservation of ecological
sensitive areas, lakes/ water bodies/ Rivers/ Nalas along with their buffer areas, area specific Agro-rich
crops/ orchards/ tea etc, equivalent to 2 times of such buffer area/ preservation area preserved at the
owners' cost.

For example: If one surrendered 30 sq.m area free of cost and free from all encumbrances, the owner will
be entitled to get TDR of 60 sq.m if his land is in less dense built-up area and 90 sq.m if his land is in
high built-up area or core congested area. Furthermore, additional/incentive TDR to the extent of 40
percent and 30 percent of the surrendered land area is to be allowed to land owners who submit the
proposal suo-moto for grant of TDR within three and two years, respectively. The methodology is
different for TDR generated by the construction of amenity, slum, and heritage TDR, as given below:

Construction Amenities When an owner or lessee develops or constructs an amenity on a surrendered

plot or land already vested in the Planning Authority, at their own cost and to the satisfaction of the
officer designated by the State Government, they may be granted a TDR as given below:
Construction Amenity TDR in sq.m = A/B * 1.25, where
A = Cost of Construction of amenity in rupees as per the PWD schedule of Rates (SOR) of construction
mentioned for the year in which construction of amenity is commenced.
B = Circle rate per sq.m of the land for the year in which construction of amenity is commenced.
Affordable Housing or Slum Re-Development Projects: TDR certificates to be issued to EWS
beneficiaries will be the extent equivalent to EWS housing built-up area, subject to conditions prescribed
in State Government policies and schemes.
Heritage Buildings: Owner is entitled to TDR if deprived of FAR on Heritage Building Plot
Site/Heritage Precinct site. TDR shall be provided for a building unit with Heritage structures or building,
or for building units with a heritage precinct notified in the Master Plan/ Zonal Plan/ Local Area Plan/
Town Planning Scheme/ Influence Zone Plans of TOD or ASI notified structures. TDR shall be given at a
maximum of 50 percent of total utilised FAR, with a maximum of 10 percent of this TDR used for
additions or alterations to the existing recognised Heritage Building within the limitations of maximum
allowable FAR. The remainder may be used in another receiving zone using the TDR mechanism.

Utilization: The TDR certificate may be utilised either at the remaining portion of the area or anywhere
else in the receiving area or in the areas earmarked in the master, local plans, either by himself or by way
of transfer. The equivalent amount of TDR to be permitted on receiving plot shall be governed by the
formula: -

Permissible Utilization of TDR in sq.m on receiving plot

X = (Rg/ Rr) x Y, where
X = Permissible Utilization of TDR in sq.m on receiving plot
Rg = Rate of land in Rs. Per sq.m as per circle rate in sending plot in utilizing year
Rr = Rate of land in Rs. Per sq.m as per circle rate on utilizing plot in utilizing year;
Y = TDR from DRC in sq.m

Quantum of TDR to be purchased by the receiving plot

A = (Rr/Rg) x B
Where, A = TDR to be purchased;
B = required Built-up area for receiving plot
For e.g., if Rr is equal to Rs. 4000 per sqm and Rg is equal to Rs. 2000 per sqm and required built up area
is 100 sqm, then the developer needs to purchase 200sqm(4000/2000 * 100) from the TDR
certificate to transalate to 100sqm on his receiving plot

The total maximum permissible built-up area and utilization of TDR on receiving plot in the receiving
zones will be subject to the road width, as prescribed in Table.

S. Plots fronting on road Maximum Permissible TDR Loading Max FAR

No width (existing width in Plot Area (Sq.m) (subject to
meters) Up to 500 500-1000 1000-4000 Above maximum
4000 permissible
height)
1 6.0-7.5m (in hills) 0.10 0.20 0.30 0.40 2.25
2 7.5-9m (in hills) 0.20 0.30 0.40 0.50 2.5
3 9-12m 0.30 0.40 0.60 0.70 2.75
4 12-18m 0.40 0.60 0.80 0.90 3.0
5 18-24m 0.60 0.80 1.00 1.20 3.5
6 Above 24m 0.80 1.00 1.20 1.40 4.0

FAR loading limit on such plot (maximum building potential column) shall be the Basic
FAR+TDR+Additional FAR on payment of premium if any. The basic FAR shall be 0.5 and the max.
Permissible FAR shall not exceed 3.5-4.0.

Implementation: The Uttarakhand Housing department has issued the comprehensive policy only in
2022. The instrument is yet to be implemented.

6. GOA
Law/ Policy: The Goa Land Development and Building Construction Regulations, 2010, which in
exercise of the powers conferred by sub-section (1) and (2) of the section 4 of the Goa (Regulation of
Land Development and Building Construction) Act, 2008 (Goa Act 6 of 2008) incorporates provisions of
TDR.

Definition: Development potential of a plot of land may be separated from the land itself and may be
made available to the owner of the land in the form of Transferable of Development Rights These rights
may be made available by the Government and be subject to the Regulations made at the appropriate
time.

Eligibility/ Purposes: The said TDR regulations will be restricted to the following purposes: -
a) In case of private property which is reserved for recreational purposes under zone R in any Plan
in force and is transferred to Government/Local Authority/PDA without any monetary
compensation, the FAR applicable to the neighbouring zone shall be allowed to be sold for the
development of properties of other developable zones in the specially designated areas.
b) In case of private property which is affected by the road widening as per any Plan in force and the
affected area is transferred to Government/Local Authority/PDA without any monetary
compensation, then the FAR of the said affected area shall be allowed to be sold for the
development of properties of other developable zones in the specially designated areas as under: -
(i) In case the FAR of the said affected area cannot be used fully utilized within the plot, then the
unutilized FAR shall be allowed to be sold for the development of properties of other
developable zones in the specially designated areas.
(ii) In case the FAR of the said affected area is elected not to be used, within the plot, then the
said FAR shall be allowed to be sold for the development of properties of other developable
zones in the specially designated areas, provided an undertaking is given towards the
permanent surrender of the use of such FAR within the plot.
c. In case of Conservation zones where full development rights cannot be utilized due to the
restrictions as per Plan in force, then the unconsumed FAR shall be allowed to be sold for the
development of properties of other developable zones in the specially designated receivable areas
in the plans.

SUMMARY

1. Wide Recognition to TDR: From Mumbai, where the instrument was first implemented in 1991,
TDR is recognised country-wide for its useful role in infrstructure creation in the urban areas. The
Study covered 14 states; including three states (Maharashtra, Gujarat and Tamil Nadu) where TDR is
now being implemented across the state by various UDAs and ULBs; five states viz. Telangana,
Karnataka, Madhya Pradesh, Tamil Nadu, and Rajasthan where the instrument is being implemented
in select cities and six states viz. Assam, Haryana, Jharkhand, Odisha, Uttarakhand and Goa, where
rules/policies have been formulated to implement the instrument.

2. Law/Policy/Rules: Out of the 14 states covered for TDR, four states viz Maharashtra, Gujarat,
Karnataka and Tamil Nadu have amended their State Town Planning Acts to provide statutory
recognition to TDR; the other ten states have rules/policies on TDR that would have to be suitably
upgraded to a law to ensure legal sanctity of the promising instrument.

3. Reforms: Andhra Pradesh and Telangana have addressed the issue of transparency in TDR by
providing information about the current value of TDR in market, TDR owners and purchasers etc.
 Real time online TDR portal was launched by Andhra Pradesh in 2019. The GHMC in Telangana has
pioneered the launching of an online TDR bank, wherein the entire summary of the transaction on the
DRC file and the available balance is dynamically updated and put forth in public domain. The web
portal can be effectively used for tracking utilisation and addressing some of the potential issues like
prevention of cartel formation, unfair trading etc.

4. Economising Resources/Cost: The primary objective of TDR is to economise on the land cost
critically required for urban infrastructure while providing a fair or even a more promising alternative
to the landowners. Though the data has not been furnished by all implementing states, states that have
reported reflect good economisation of resources. These include Maharashtra 21500 crores, about
2000 crores in Andhra Pradesh since 2014

5. Utilisation: The utilisation of TDR was seen low in some states. It is important to assess the reasons
for low utilisation. If there is already high development rights in the city, both demand for TDR and its
utilisation will be less. It is important to recognise that in such a scenario, the landowners will also
find less takers for TDR. It is critical for states conduct thorough assessment of the receiving zones
and ensure that the demand for additional FSI over and above the maximum permissible FSI is
evident. Introducing the instrument without adequate groundwork would only render it unpopular even
potentially jeopardising its successful introduction later.

6. Compensation Vs TDR: TDR was originally introduced as an alternate to compensation. In the

amended legislations, MRTP Act, 1966 u/s 126 (1); GTPUD Act, 1976 u/s 20(1), Tamil Nadu TCP
Act, 1971 u/s 36, TDR is one of the options for acquisition of land besides agreement and acquisition
under the land acquisition law4. In the Karnataka Amended law u/s 14B, TDR is granted in lieu of
compensation under RFCTLARR Act, 2013. However, there is a tendency to make it mandatory in
practice. This is bound to attract judicial intervention (sample cases in Annexure I) and ultimately
undermine its strength. The need is to make TDR attractive rather than compulsory. Monetary
compensation always has a drawback even when assessed fair in the present times

7. Cost for Availing TDR: It is important to recognise that even in cities with a history of successful
TDR implementation, TDR certificates only have FSI credits. Their monetary value depends on the
overall property market in the city and hence is uncertain. They may also not provide for timely
compensation, as suitable buyers may not be available when the money is required by the TDR
certificate holders. 

Considering that TDR is an alternative to compensation, additional cost to the landowners as given
below may be ill-conceived and will go against the promoting the promising tool, particularly in
Some examples are given below
 Stamp duty and registration charges for transfer of land by the landowners to the government to
avail TDR: Most states mention the TDR would be granted after surrender of land free from all
encumbrances to the state. In effect, the conveyance charges are expected to be borne by the
landowners. Odisha is an exemption where it is specifically mentioned that no stamp duty would be
payable by the landowner. In Andhra Pradesh too, the Stamp duty is exempted for property gifted
to the Govt. with free will.
 In-kind responsibilities on landowner prior to transfer of land: Many states provide for issuance of
DRCs after fulfilment of certain responsibilities by the landowners. Some of the mandatory
requirements for issuance of DRCs are given below:
 Assam: Constructing/ erecting a brick/stone wall of 0.60m at the cost of the owner; if such
construction/ erection of compound wall/ fencing is prohibited or restricted by any Regulation,
then quantum of TDR to be reduced

4
The MRTP Act, 2still mentions acquisition under Land Acquisition Act, 1894. The Act has been repealed and the new
law RFCTLARR Act, 2013 is effective since 1st January, 2014.
  Haryana: Applicant should pay scrutiny fee at the time of applying of TDR and shall be non-
refundable.
 Jharkhand: Any fee or charge to be paid to Circle for the purpose of mutation of records or
issuance of Record of Rights (RoR) in favour of Authority shall be borne by the applicant.
 Maharashtra: Constructing/ erecting a 1.5 m. high compound wall / fencing i.e. brick/stone
wall up to 0.60m. above ground level and fencing above that up to remaining height with a gate,
at the cost of the owner and to the satisfaction of the Authority; if not quantum of TDR shall be
reduced to 1:1.85 and 1:2.85 in non-congested area and congested area respectively.
 Rajasthan: Erect pillars at every 30m and on every corner and each pillar shall be
1m*0.5m*0.5m; Processing fee at the rate of 1% of actual valuation of TDR value on the basis
of prevailing DLC rate of the area from where TDR is generated at the time of issue of TDR
certificate (except in case of affordable housing and slum rehabilitation scheme; ects, as per
para registration charges @ 1% of actual valuation of TDR value on the basis of prevailing DLC
rate at the time of issue of TDR certificate shall be charges. In case TDR certificate is issued to
other than the land owner registration charges will be at the rate prescribed for transfer/
transaction of TDR.

8. DRCs: There are wide differences in the formats for DRCs across various implementing States.
Karnataka has a comprehensive DRC that clearly mention that TDR is in lieu of compensation and
provides GPS coordinates of the surrendered property, Besides, the DRC mentions the land use of the
surrendered property, ‘notional’ land area credit of the land area surrendered as well us building area
surrendered, valuation amount of the building surrendered and the market value of the surrendered
plot. A standard template duly mentioning validity, formula for utilising TDR as well as areas where
TDR can/cannot be utilised may be ideal.

9. Issuance to Government Departments: While TDR is generally generated and issued to individuals,
private partnerships, in Odisha TDR Certificates can also be issued to DAs, ULBs or any other
government agency who can either utilise these in their projects or sell it through public auction. TDR
is yet to be implemented in the state.

NITI Aayog (2020) Guidelines on TDR tool had put forth detailed suggestions both as preparatory
steps for development of policy and as way forward for effective implementation. The preparatory
steps suggested included amendments to relevant state legislations; market demand assessment by
ULBs; establishment of digital decision-support system;gital spatial database of the city linked with plot-
wise dynamic database of existing land uses, planned land uses, ownership, abutting road width, and
land values. This database would need to be updated regularly and used as a decision support system
for demarcating the sending and receiving zones and planning adequate infrastructure in the city. Such a
system may aid in avoiding any discrepancies in the TDR issuance and prevent any unforeseen
litigations. IV. Step IV- Identification of ‘Sending and Receiving zones’ a. The ULBs / planning authorities
must clearly demarcate the ‘Sending Zones’ in coherence with the Development / Master Plan of the
city. 13 b. To identify the ‘Receiving Zones’, the ULBs / planning authorities must identify and demarcate
the zones where additional density is planned as per the Development / Master Plan of the city and
market demand assessment indicates the growth in future. C. In certain cities, as per the market
demand assessment and the infrastructural availability, the concept of sending and receiving zones may
be based upon a factor multiple. For example, the DRC generated from a high-density zones may be
used incrementally (2 times) in low density zones while the DRC generated from lowdensity zones may
be used by applying a decremental factor (0.5 times) in the high density zones. V. Step V- Planning for
adequate infrastructure in ‘Receiving zones’- The ULBs may estimate the total TDR generation potential
in all the ‘Sending zones’. This along with existing infrastructural carrying capacity of the ‘Receiving
zones’ shall enable the ULBs to plan for adequate provision of roads, water supply, sewerage and other
infrastructure. The digital spatial database system of the city will be instrumental in planning and
implementation of such infrastructural provisions. VI. Step VI- Revision of building bye laws- The ULBs /
planning authorities would need to revise the building bye laws / development control regulations under
the overall ambit of the TDR policy. VII. Step VII – Assessment of value of DRC award- The value of DRC
should be linked to the conferment of market value of land or as may be decided by the competent
authority. Appropriate formula should be evolved to factor the impact of land values on the DRCs. VIII.
Establishment of an Online banking system for trading TDRs (optional)- To further enhance the
transparency in the TDR trading mechanism, prevent ,misinformation, facilitate better monitoring and to
make the process citizen friendly, an online TDR bank application may be developed by the ULBs. This
portal may have various features like details of TDR Certificates issued, TDR area calculations,
notification of sale and purchase etc. Such a system may also reduce the transaction cost and eliminate
the dependence on broker/middlemen to utilize/ sell the DCR. XIV. Step VIII – Stakeholder consultation
and announcement of TDR policy- Stakeholder consultation (private sector and citizen) may be
conducted once the draft TDR policy is ready. The draft policy may be revised as deemed fit in the public
interest. At this step, the State Governments may declare the TDR policy including the details of its
purpose, applicable zones, standard operation procedures, formulae of fixing values, time frames of DRC
validity, procedures of applying for DRCs, selling the DRCs and utilizing the DRCs, means of techno-legal
assistance to the citizens and other detailed rules for its operationalization. XV. Overall to inspire more
trust in the market and ensure better transparency, municipalities may undertake requisite governance
and accounting reforms before they notify TDR policy.

WAY FORWARD 5.1 POLICY IMPLEMENTATION AND REGULATION I. The Department of Land
Resources (DoLR), Ministry of Rural Development (MoRD) or MoHUA may examine the incorporation
of TDR as one of the (voluntary) options while acquiring land for public purposes. II. A prescribed
authority for regulation of TDR policy may be formed at the State level to perform the function- a)
function as a regulator, mediator and enabler, b) resolve issues related to interpretation and
implementation of the policy, c) ensure convergence of the said policy with all government projects /
schemes/ policy where relevant, d) regulate the pricing mechanism of TDRs to ensure minimum base
selling price of DRCs, and e) regulate the time period for validity/revision of the TDRs. III. The States /
ULBs may prepare the TDR policy, prepare draft amendments in the development control
regulations, undertake the stakeholder consultations with builders, citizens, technical experts etc.,
and submit the policy for approval from competent authorities. IV. The States may begin
implementation of the TDR policy with selected million-plus cities, potential Class – 1 cities and then
expand the scope of this policy to all other cities in the State. V. To keep the process transparent, the
ULBs may ensure that the ‘Sending and Receiving zones’ are marked in the digital spatial database of
the city. The same may be available at the web portal of the concerned ULBs / planning authorities
for public viewing soon after the TDR policy gets notified. Also, a suitable grievance redressal
mechanism may be developed. 5.2 CONVERGENCE WITH OTHER SCHEMES I. The Central, State and
Local governments may examine the possibilities of using the TDR method for implementing the
infrastructure projects like Transit Oriented Development. II. At the time of initiation of a new
infrastructure project, the rules and regulations governing the Value capture methods in the State
may be assessed. This may be the part of the project feasibility studies. III. After finalizing the
‘project’ location, the area of influence of the project, where the land and property values are
expected to increase, may be delineated for applying the TDR policy. This may be the part of the
Detailed Project Report (DPR). IV. Regular monitoring and evaluation of the generated TDR
certificates may be undertaken by the concerned Central/ State governments and their agencies. V.
Once the TDR market matures, it may also be considered as an advantage under PPP projects. In such
cases, prior to the bid, the Authority can package DRCs, along with other project specific rights under
a suitable PPP model. This would enhance the overall viability of the 15 Project as the concessionaire
would get cross-subsidized through the incremental value of the DRCs.
 Annexure

Judicial Interpretation of TDR

Notice impugned dated 13.05.2022 on the face of it is ex facie illegal. The respondent authorities have
issued the said notice dated 13.05.2022 giving go-by to all canons of law and to all the procedures known
to law. The respondent authorities having stated that the land belongs to the petitioner, which is a private
property of the petitioner, directed him forthwith to remove and handover the possession of the road
affected portion of his property to an extent of 41.11 sq.mts to the Greater Warangal Municipal
Corporation on free of cost within 10 days or else it will be removed and taken over under Section 176(1)
and 185 of the Telangana Municipalities Act, 2019. Without application of mind, without even
understanding the consequences of it, the impugned notice is issued. The respondents have no authority to
deprive the petitioner of his right to property without following the due procedure. The respondents also
cannot compel the petitioner to avail the benefits which are given by them. It is for the petitioner to
decide whether he is interested to avail the benefits or he wants compensation. The impugned notice dated
13.05.2022 is accordingly, set aside. The respondents are directed not to interfere with the petitioner's
possession in respect of the property at H.No.2-10-294 situated at Waddepally, Hanamkonda without
following due process of law.
Telangana High Court: Praveen Kumar Mattepally vs The State Of Telangana

This Court holds that the acquisition under Section 126(1)(a) and (b) of the Maharashtra Regional and
Town Planning Act, 1966 has to be by consensus between both the parties and not only at the option of
the Acquiring Authority. Mere approval of the request of the land owner to grant of monetary
compensation or grant of TDR/FSI in lieu of compensation by itself will not always result in a concluded
contract and the question would have to be determined in the facts and circumstances of each case.
Therefore, the land owner can withdraw his request and refuse or decline to surrender the land as long as
there is no concluded contract between the parties. Mere grant of approval or passing of resolution by the
authorities concerned for grant of TDR/FSI in lieu of monetary compensation is not a step for acquisition
of land, thereby commencing the proceedings for the acquisition of land, unless it concludes the contract
between the parties. 
Bombay HC-2022: Shree Vinayak Builders And ... vs The State Of Maharashtra, 

The petitioner has challenged the impugned communication dated 07.06.2022 of the third respondent
Assistant Executive Engineer, whereby, the petitioner has been informed that "the site falls under road
widening as per CMDA land use map hence produce draft for gift deed in road widening portion". There
is no choice with the respondent or the appropriate Planning Authority to insist gifting of land. Only when
there is an agreement for purchase of land is entered into, instead of paying any amount, TDR can be
given. It cannot however be forced upon an applicant if there is no agreement. There is no provision for
gifting of the land under the provisions of the Tamil Nadu Town and Country Planning Act, 1971, as it
stands amended. or under the provisions of the Tamil Nadu Combined Development and Building Rules,
2019. In absence of any mutual agreement for transfer of the land meant for aforesaid purpose, the
respondents cannot force the petitioners to execute a Gift Deed in favour of the local authority. The only
option available with the respondents is to acquire the land earmarked for road widening purpose in terms
of provisions of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013 (Central Act 30 of 2013).Therefore, the respondent Corporation or the
appropriate planning authority has to either enter into an agreement with the owner of the land and if
there is no agreement, the land has to be compulsorily acquired under Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (Central Act 30 of 2013).
MADHC-2022: R. Rajagopalan and Ors. vs. The Commissioner, Greater Chennai Corporation

In the light of the provisions of Section 14-B(6) of the Act, it is clear that, if the petitioner was unwilling
to accept the 'Development Rights Certificates', which was being offered in lieu of monetary
compensation, the respondent-BBMP would have to resort to acquisition under the provisions of Right, to
Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 or
any other law prevailing. Hence, it is made clear that in light of the rejection of offer made by the
respondent-BBMP, the BBMP would not interfere with the rights of the properties of petitioner.
However, the respondent-BBMP is entitled to:
(a) Initiate appropriate proceedings for acquisition of properties of the petitioner as may be required for
the purpose of implementing their project under the provisions of Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 or any other law
prevailing;
(b) They are entitled to obtain transfer of property of the petitioner to the extent as may be required for
the purpose of implementation of the project by negotiations after obtaining the Deed of Conveyance.
KARHC-2019: Mohammed Ebrahim vs. The Commissioner, BBMP and Ors.