An overview on Transferable Development Rights in the State of Telangana and Andhra Pradesh

by Rishi Batta Law Firm

The concept of transferable development rights (“TDR”) was introduced in 1916, in New York City, following which many of the countries across the globe followed suit. In India, TDR has been implemented in metropolitan cities such as Mumbai, Bangalore, Chennai and Kolkata.

TDR provides an additional built up area to the landowner in lieu of the landowner relinquishing / surrendering land without any cost to the local body / urban development authority for public purposes such as road widening, open spaces, parking spaces, parks, etc.

The State of the Telangana also adopted the concept of TDR[1] vide the building rules notified under Government Order bearing GO Ms. No. 168, dated April 7, 2012 and amended by GO Ms. No. 330, dated December 28, 2017 (“TS Building Rules”) which inter-alia govern the rules in respect of the TDR.

Grant of TDR Certificate:

Rule 17 of the TS Buildings Rules makes provision for awarding TDR certificates[2]. A TDR certificate  is issued only to the landowner, when the land is transferred to a local body / urban development authority for public purposes without any cost, by way of registered Gift Deed[3]. Further, TDR is not allowed for unauthorised buildings / structures / constructions and is considered only after the land is vested with the local authority / urban development authorities.

Circumstances for Issuance of TDR:

 The circumstances whereby the landowner can avail the benefit of TDR are outlined below:

The government prepares the master plan for the urban areas for carrying out developments and infrastructure for public purposes and for the same, it may require acquisition of the land for road widening, for construction of parking complexes and parks. In such situations, it becomes compulsory for the local body / urban development authority to acquire land from the landowners for the aforesaid purposes. Acquisition of land under the land acquisition procedure may result in the government paying higher compensation and can impasse the construction and development for many years and the landowners’ land can get locked under the land acquisition proceedings. Therefore, to avoid cumbersome procedure for acquisition of land, the local body/urban development authority has introduced the concept of issuing the TDR to the land owners, pursuant to issuance of TDR, the land owner is entitled for construction of 2 (two) additional floors over the normal permissible floors without insisting for additional setbacks, in the remaining area of the site, or on the other property owned by the land owner within the concerned local body area, subject to compliance of the other norms or sell the TDR granted to the land owner to a person interested in buying the TDR. If the land is acquired from the landowner for road widening, the local body / urban development authority will consider for grant of TDR equivalent to 400% (four hundred percent) of built up area of such area surrendered/relinquished[4];

Tatva Legal, Hyderabad has a specialized team of lawyers who, amongst other services, advise on real estate transactions covering various aspects of the transaction such as general real estate transation adviosry, cross border real estate transactions and title due diligence .

Read More :

Sponsor Ads

About Rishi Batta Innovator   Law Firm

12 connections, 1 recommendations, 55 honor points.
Joined APSense since, July 6th, 2021, From Hyderabad, India.

Created on Aug 11th 2021 08:46. Viewed 97 times.


No comment, be the first to comment.
Please sign in before you comment.