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