Transfer of Development Rights (TDR) is a voluntary, incentive- based program that allows landowners to sell development rights from their land to a developer or other interested party who then can use these rights to increase the density of development at another designated location. While the seller of development rights still owns the land and can continue using it, an easement is placed on the property that prevents further development.
When the Government undertakes compulsory acquisition of individual land parcels for creating infrastructural projects in a city, it is required to compensate the land owners. The compensation provided by the Government is usually lower than the market rate, and hence they introduced the concept of Transferable Development Rights. These rights are obtained in the form of certificates, which the owner can use for himself or can trade in the market for cash. The Transferable Development Rights are usually transferred from the fully developed zones to other zones and not vice-versa.
Karnataka government’s revised Transferable Development Rights (TDR) scheme introduced to make compensation more attractive for landowners who lose property for public infrastructure projects — has found no takers in Bengaluru city.
The new rules were aimed at offering a better package to land losers and also to prevent large-scale misuse of the earlier TDR scheme. The revised scheme offers TDR at two times the value of the land acquired whereas under the old scheme the value was limited to 1.5 times. BBMP officials reveal they have not received any request for a Development Right Certificate (DRC) from land losers and that people prefer monetary compensation. But BBMP is crash strapped.