Transfer of Development Rights in Karnataka

TRANSFER OF DEVELOPMENT

RIGHTS TDR

GOVERNMENT OF KARNATAKA, URBAN DEVELOPMENT DEPARTMENT

COMMENTS ON THE PROPOSED AMENDMENT AND REGULATIONS

SECTION 1: Development

Scenarios using TDRs

Scenario 1: the Opera House at

the end of Brigade Road is a historic

beautiful building which is in a di-

lapidated condition. It is in a prime

retail location and the owner can sell

his land for a price that will make

him very wealthy. Developers will

tear down the building and build a

hi-rise commercial complex that will

make them a tidy profit.

The city will be poorer for it

though. A bit of history and a public

place of value will be lost. What if

the owner was instead given a Trans-

fer of Development Right for the

buildable square footage on his prop-

erty which he could sell just as he

would be able to sell his land? In re-

turn he would permanently “deed

restrict” the land and the land use.

He would also agree, as per the Heri-

tage TDR rules, to set aside a portion

of the funds from the sale of his

TDR for the renovation and mainte-

nance of the Opera House.

A win for both the city and the

owner.

Scenario 2: a farmer is ap-

proached by developers with an at-

tractive price for his land in the

Bommanahalli CMC limits. The

attraction of cash-in-hand over-

weighs considerations of loss of shel-

ter, produce and regular income gen-

eration. There is also the fear that the

city’s growth will result in develop-

ment acquisition The sale takes place

and the developer monetizes the land

to the maximum without considera-

tions to existing valleys, wetlands or

tanks. This has environmental reper-

cussions to the greater region such as

flooding, blocked drainage, depleted

ground water table, ecological distur-

bance, etc, some of which will re-

SWATI RAMANATHAN JAN 2005

JANAAGRAHA Banagalore

CONTENTS

This analysis of the Transfer of

Developments amendment and

proposed regulations to the Kar-

nataka Town and Country Plan-

ning Act, 1961, is divided into

four sections.

I. Development Scenarios

using TDRs

II. Pre-existing conditions re-

quired for successful im-

plementation of TDRs

III. regulations for the success

of TDR as a development

instrument.

IV. Additions and alterations

suggested to the proposed

regulations

quire municipal expenditure on recti-

fying measures. For example, roads

subject to flooding erode rapidly and

require frequent, expensive mainte-

nance.

What if the vulnerable areas

were deed restricted permanently in

exchange for commensurate TDRs to

the farmer. This can effectively pro-

tect ecologically and environmentally

sensitive areas permanently. Record-

ing conservation easements on their

property, villagers can access financial

gain through Development Credits

which they can sell and be utilized in

specific jurisdictions, without forfeit-

ing their land. The farmer continues

to farm his / her land while gaining

income from the sale of his develop-

ment rights which he can in turn put

to use on his farm. The city’s green-

belt Bellandur lake

can also be similarly protected.

The city preserves it’s sensitive areas

such as wetlands, valleys, etc. without

forcing the farmer to forgo develop-

ment profit.

Scenario 3: A property is in the

path of a proposal for a road widen-

ing by the BMP. The owner is forced

to give up his land either partially or

entirely for the project since it is in

the larger public good and the gov-

ernment has rights of “eminent do-

main”. In return he can either take

the rate prescribed by government for

compensation or perhaps accept an

alternative site under a current spe-

cial scheme. He has no choice on

location. The government has to use

up precious financial resources to pay

for the acquisition.

What if the owner is given

TDRs that allow him to either sell it

to a developer that will give him

market rates (without paying stamp

duties as in the conveyance of land),

or hold on to the TDRs in anticipa-

tion of price hikes in land and sell it

at this future rate just as he might

have sold his land. He can also

“mortgage” his TDRs for capital

with financial institutions as he would

with his land.

SCENARIO 4: The residents of

Lottegolannahalli in the Bytrannpura

city municipality have no Post Office,

public toilets, parks, playgrounds or a

single public space. The time, energy

and resources that the residents

spend on accessing basic facilities is

enormous. This results in a low qual-

ity of life and productivity for the

residents and also has an impact on

real estate values. The corporator

and commissioner express their in-

ability to address the residents’ re-

quirements. Every inch of land has

been sold and there is no site set aside

for civic amenities.

What if privately owned vacant

land can be identified as suitable for

public amenity sites and the owner

given TDRs in exchange for the land.

This allows the owner to sell his

TDRs to a developer or use it on any

other property that he owns to build

additional FAR. The community gets

much needed public spaces.

In the past, government had two op-tions to acquiring private land forpublic use:

ACQUISITION IN THE PAST

Option One: to use eminent

domain which allows government

acquisition rights on any private land

in the interest of providing public

amenities, including housing. The

land owner has no choice in the mat-

ter. The government has a pre-

determined value for the land which

it pays as compensation for the acqui-

sition. This power is used in acquir-

ing land in urban areas for construct-

ing flyovers, etc and in the outer agri-

cultural areas to provide for housing

developments, industrial and tech-

nology corridors, highways, etc. The

owners lose out on the valuation at

the market rate and on accruing any

long-term benefits of increased

valuation. Options to individuals in

counteracting acquisition are limited

to preventive construction on their

land or using political influence in an

attempt to de-notify their property

from the acquisition process.

Option Two: government to

provide land at an alternative loca-

tion as in the case of slum reloca-

tions. This again has the issue of fair

compensation in terms of valuation

and the issue of locational dissatisfac-

tion with the compensated land.

As local political winds change,

so do the zoning policies evolved by

the development authorities. Moreo-

ver, as infrastructure evolves, the out-

lying areas to the city also become

more attractive to development.

TDRs provides an alternative to the

above two options. It has two

private land will be acquired for public

projects such as road widening, flyovers, metro

rail, etc.



advantages:

First, it allows government to

acquire land without using tax rupees

which are in short supply, and second

it mitigates / compensates the

“Taking” of private property for

public use in a manner that is more

fair to the owner.

As illustrated in the above sce-

narios, TDR is a powerful tool that

when used in the right manner works

to revitalize existing city centres and

neighbourhoods, preserves historic

landmarks, provides opportunities for

low-income housing, reduces the

burden on limited infrastructure ca-

pacity and encourages land use pat-

terns that promote a better quality of

urban living.

However, to be successful, a

market for the development rights

must be created. This means encour-

aging both the sale and the purchase

of the development rights.

SECTION 2: Pre-existing con-

ditions required for successful imple-

mentation of TDRs

In a country like the USA, the

use of TDRs has been ongoing for

the last fifty years and is now used in

25 States in a variety of ways. How-

ever, the country already had the

following factors in place which en-

abled the successful use of TDRs:

• a well developed land-use pol-

icy that is strictly enforceable, and

enforced

• a well defined zoning policy

that guides the development of a city,

directing development in desirable

directions

• conservation and preservation

policies for landmark sites, heritage

sites etc

• an efficient land pricing market

to arrive at values for TDRs

• a developer community that

functions “efficiently” with the right

market incentives

• organised community partici-

pation that has a voice in the TDR

process for a particular site, either

sending or receiving, or even pur-

chase TDRs for their own resource

development

In India, none of the above is in place which is a cause for cau-tion in the use of a tool that can be mishandled and misused.



SECTION II

MINIMUM CONDITIONS FOR THE SUCCESS OF TDRS IN KARNATAKA

Ownership / tenure of land that is clear and absolute

Land TitlesUnless ownership is litigation free, the process of veri-

fication will incur huge investment in human resources,

time and procedures. The Lack of land titling and registra-

tion that assures ownership results in an artificial inflation

of land pricing. This was seen in the recent BDA site auc-

tions at Banashankari where land was purchased at twice

the estimated market value due to the clear titling.

Primary detailed, street-wise pricing data

Land Market AssessmentThe type of TDRs issued in exchange for land or for

protective zoning will vary depending on the value of the

said land. In order to ensure that the valuation of land is

current and closely reflects the market conditions on the

ground, a comprehensive streetwise market value assess-

ment of land will be required within the city and area-wise

in the rural outskirts. The value of this assessment is three

fold: one, it allows an equitable and efficient exchange of

buildable land with TDRs; two, it aids in assessing the price

point where the financial benefit of building to the maxi-

mum FAR allowance is too great for owners and developers

KR Market

to resist; three, it allows an impact analysis of changes

in TDR zoning and land use over time on land valuation.

However, true land market assessment is dependent on the

titling records as illustrated in the BDA example above.

LandUse and Zoning Plans e.g. CDP 2005 in Bangalore

Integration with the city master-plan

A land use and zoning plan that incorporates the fol-

lowing:

Sending Zones: identifying areas that will require the

use of TDRs such as heritage sites, environmental protec-

tion lands, areas that have density in excess of infrastruc-

ture & service capacity, mobility corridors that are con-

gested and require additional lanes, junctions that need

resolution, flyovers or underpasses and neighbourhoods in

need of public amenities, etc.

Receiving Zones: identifying areas where growth is

desirable. These areas must have easy access to utilities,

transportation, shopping, employment opportunities,

public services and existing development.

Land Use: Mapping the ground realities vs. the pre-

vious Development plans will allow us to recognize land

use trends and zone realistically. Analyzing the areas

where land use change has been requested, as well as the

shift in land use patterns will be required in order to zone



WHAT ARE THE MINIMUM

CONDITIONS THAT MUST

PRE-EXIST USE OF TDRS IN

KARNATAKA?

• LAND TITLE SYSTEMS• LAND MARKET ASSESSMENT• INTEGRATION WITH THE CITY MAS-

TERPLAN• DEVELOPING THE MARKET • DEVELOPING THE PROCESSES

and price TDRs. Social and economic patterns often re-

sult in mixed use and must be accommodated in the

TDR process. In fact, TDRs can be valuable in encourag-

ing planned development. For example, in areas where

density restrictions are placing artificial pricing barriers to

housing access and economic activity, zoning can be re-

structured and mixed use can take a planned approach.

TDR zoning can allow all residential housing in neigh-

bourhood centres additional restricted commercial FAR

through the purchase of TDRS. Similarly, commercial

areas can be allowed additional residential FAR to be

purchased through TDRs

Partnering with the Developer Community; the planning authorities and the citizens

Developing a Market for TDRsStakeholder identification for the success of TDR:

There are multiple stakeholders that will impact the success

of the TDR policy. Unless these are identified and co-opted

from the start, the TDR will be an ineffective instrument.

Three key stakeholders are: planning authorities who will

incorporate sending / receiving zones into their compre-

hensive plans; developer community; citizens

Encouraging TDR exchange between urban centres:

this does not really fall into the category of a pre-requisite.

It is a strategy for making TDRs more flexible and elastic

geographically. However, in order for this elasticity to find

expression, integrated planning by multi-municipal plan-

ning & development agencies in identifying sending / re-

ceiving zones, etc. is a prerequisite.

SECTION III

Regulations for the Success of TDR as a Development In-strument.ENCOURAGING THE TDR MARKET

Since TDR success is driven by supply and demand, it must

motivate sellers to sell and buyers to buy. Successful imple-

mentation requires the following aspects to be considered in

the amendment to the act and its regulations:

I. Development plans such as the Revised Com-

prehensive Plan 2005 in Bangalore, must rec-

ognize the introduction of the TDR policy in

the following ways:

o Identifying areas where growth is desirable and to be

encouraged. Identifying areas where growth is undesirable

and needs to be restricted. Identifying areas of environment

and ecological concern. Identifying heritage sites and zones

for preservation.

o Assessing infrastructure capacity and growth capacity of

the existing city.

o Formulating zoning regulations and environmental

regulations restricting growth in the sending sites. Articulat-

ing regulations to relate allowable density to minimum in-

frastructure availability.

o Aid the process of estimating the buildable land square

footage / value in these sending sites that must be compen-

sated with TDRs

o Re-formulate Land Use Conversion policy so that ap-

plications are subject to far greater scrutiny on neighbour-

hood impact and involve local community input. The abil-

ity to change Land Use with ease is a current disincentive

to TDR purchase. There is no incentive to buy TDRs from

commercial sending sites if residential sites are cheaper and

are allowed greater FAR by easy land use conversion. Land

use must be combined with land price in assessing market

value of TDRs.

o Identifying receiving sites

Receiving areas must be identified such that they are

areas of sufficient demand for growth.

The zoning must be designed such that higher den-

sity is allowed only through the use of TDRs. Developers

need to be encouraged to buy TDRs. If the allowable

density is already high enough in the receiving areas, the

developer has no incentive to purchase the TDRs. There

must be a clearly established profit-making benefit to the

developer in order to buy additional FAR.

Developers are given the option to develop at a lower

FAR without the TDRs or buy TDRs and build at a

higher density. However, the density bonuses must be

high enough that the developer finds it cheaper to buy

development rights rather than land, however, not so high

that the development overwhelms the infrastructure ca-

pacity.

Receiving areas must be capable of receiving more

than twice the TDRs generated by the sending sites to

reassure developers on the usability and marketability of

TDRs

Inter-jurisdictional exchanges can become a key suc-

cess driver and can become an instrument in enabling the

regional growth plan. For example, TDRs in Bangalore

can be utilized in Udipi with an additional increase in the

FAR allowance. The increase can be decided collabora-

tively across the State with the local development



authorities. A regional program will require an efficient

balancing between sending and receiving zones. The

planning authorities of all regional municipalities must

collaborate while designing their development plans. The

Metropolitan Planning Committees will require to be

formed and bring various agencies together.

II. Procedural aspects in the use of TDRs

o Designating a special zoning administrator for

facilitating TDR transfers is necessary.

o Ensuring predictable costs, time and development

approvals will boost confidence with the developer commu-

nity

o TDR facilitating staff that provides public infor-

mation and procedural help, instructional literature, etc

o Creating a TDR bank which buys and sells TDRs

therefore reducing the burden of validation and govern-

ment procedural hurdles

o Encumbrances on land

o Removing complexities in inheritance procedures,

transfers, sale, etc. of TDRs will increase acceptance with

the users

III. Facilitating Public opinion and support

o The Comprehensive plan is joined at the hip with

the TDR plan. Successful TDRs will require communities

to weave in their local area plans with the comprehensive

plans through TDRs

o These local and city / municipal plans must be

facilitated through discussions on environment protection,

heritage preservation, public spaces requirements and issues

of growth such as housing and commercial activity.

o Since the public is going to be affected by the re-

ceiving site increased density, this must be a consultative

process where neighbourhood communities are encouraged

to participate in identifying receiving areas, areas for pres-

ervation and requirements for public amenties

o The focus of development activities must priori-

tize receiving areas. If proper sanitation, water-supply,

transport, shopping etc is supplied in these areas, greater

density and development activities are made more attrac-

tive to both the community and the developer.

Additions and alterations suggested to the proposed

regulations

SECTION IV

One of the basic constitutional limitations on the

power to control land use is that it may not be used in a

confiscatory manner. A landowner may not be deprived of

a reasonable return on or an equivalent private use of his

property. This basic constitutional protection applies even

in the face of legitimate public purposes served by the regu-

lations in question. In any given municipality, however,

there may be a number of planning goals which may be

inconsistent with -- using land in such a way as to enable

the owner to realize a reasonable return on his investment.

The goals may relate to preservation of open space, areas

of particular scenic or environmental concern, historic

structures and agricultural land. From a planning view-

point, the uses which ought to be made of such lands might

be strictly limited; but such limitations might, if imple-

mented, prevent the earning of a reasonable return by the

owner and might be held to amount to a confiscatory "tak-

ing."

Transfer of development rights is a land use regulation

technique which can let the municipality have its cake and

eat it too. It can be used to ensure that the open space re-

quirements of the municipality's planning goals are met

without causing financial burden to landowners or restrict-

ing needed development.

This section is divided into three parts:

RULES THAT ARE NOT HARMONIOUS WITH

THE ACT

COMMENTS ON THE EXISTING RULES

ADDITIONAL RULES AND COMMENTARY:

RULES THAT ARE NOT HARMONIOUS WITH

THE ACT:

1) Under S. 14 (b) Explanation, “public purpose” has

been defined to include

a) widening roads

b) providing parks& playgrounds

c) Maintaining heritage.

But in the draft rules, “public purpose” has not been

included to mean:

a) Rule 3 (i): it has been narrowed only to widening

of roads and for other public amenities which is mentioned

in Explanations (i) and (ii) of Section 14(b). The issue in

Explanation (iii) to Section 14 (b) has not been addressed in

the rules.



COMMENTS ON THE EXISTING RULES:

The three zones namely; residential, commercial and

industrial zones have to be clearly defined.

Rule 5 (iv)- “revalidation fees”: It would be convenient

to have an higher transfer fees than validation fees because,

To make DPR marketable we need to create incentives

and not administrative hurdles

Since the revalidation fees will be prescribed by the

authority and changes periodically upon several considera-

tions such as zoning, ensuring the compliance of the same

would be complicated.

Rule 5(v) - “Normal transfer fees” has not been defined

in the act or the rules. Therefore the inheritance fee, which

is 10% of the normal transfer fees has to be clarified.

ADDITIONAL RULES REQUIRED AND SUP-

PORTING COMMENTARY:

( the italicized points in the commentary are supple-

mentary notes for the purpose of clarity)

1. Need for separate and Specific Statutory Authority

The Government shall appoint a special zoning ad-

ministrator for facilitating the issue of TDR.

Commentary: There is no specific statutory authority

for enabling legislation for TDR. Since the Municipal

Commissioner is already overburdened with his duties, it

will be extremely ineffective if he/she is also the nodal per-

son for issuing a Development Rights Certificate. This is

one of the reasons why the TDR legislation has become

ineffective in Mumbai. Therefore a separate administrative

body has to be created which shall be responsible for the

issuing of TDR.

2. Publishing annual programmes:

The authority shall publish annual programmes for all

infrastructure projects and for projects undertaken for the

protection of heritage sites for granting transferable devel-

opment rights. Notwithstanding this, in urgent cases the

authority may for reasons to be recorded in writing grant

development rights as and when considered appropriate

and necessary.

Commentary: If this data is available well in advance

then other authorities involved in urban development like

the Bangalore Development Authority can implement their

projects and calendar of events in an efficient manner.

3. Facilitating Land-Use Planning

a) The zoning shall be made in accordance with a

comprehensive plan The Comprehensive plan shall be

joined with the TDR plan.

Commentary: TDRs are regulatory tools designed to

facilitate land-use planning. Unlike most community com-

prehensive plans, the transfer of development rights re-

quires much more certainty of where development will

happen and where it will not. TDR programs do more than

preserve farmland, natural resources, and open space; they

change the way development occurs in a community. How-

ever, TDR programs cannot be established in the absence

of a comprehensive plan. Implementation of a TDR in the

absence of true comprehensive planning represents a fail-

ure to recognize that development credit values depend on

a stable and predictable real estate environment.

b) These local and city / municipal plans shall be

facilitated through community discussions on environment

protection, heritage preservation, public spaces require-

ments and issues of growth such as housing and commer-

cial activity.

Commentary: Since the public is going to be affected

by the receiving site increased density, this must be a con-

sultative process where neighbourhood communities are

encouraged to participate in identifying receiving areas,

areas for preservation and requirements for public ameni-

ties.

4. Development Plan

The authority shall prepare an annual TDR plan

which will identify the land use and zoning plan and should

incorporate the following:

Sending Zones: The authority shall identify areas that

will require the use of TDRs such as heritage sites, envi-

ronmental protection lands, areas that have density in ex-

cess of infrastructure & service capacity, mobility corridors

that are congested and require additional lanes, junctions

that need resolution, flyovers or underpasses and neigh-

bourhoods in need of public amenities, etc.

Receiving Zones: The authorities shall identify areas

where growth is desirable. The authorities shall take the

following steps in identifying receiving zones

Receiving areas must be identified and such that they

are areas of sufficient demand for growth.

The zoning must be designed such that higher density

is allowed only through the use of TDRs. Developers need

to be encouraged to buy TDRs. If the allowable density is



already high enough in the receiving areas, the developer

has no incentive to purchase the TDRs. There must be a

clearly established profit-making benefit to the developer in

order to buy additional FAR.

Developers are given the option to develop at a lower

FAR without the TDRs or buy TDRs and build at a higher

density. However, the density bonuses must be high enough

that the developer finds it cheaper to buy development

rights rather than land, however, not so high that the devel-

opment overwhelms the infrastructure capacity.

3. Receiving sites must be capable of receiving

more than twice the TDRs generated by the sending sites

to reassure developers on the usability and marketability of

TDRs

4. Inter-jurisdictional exchanges can become a key

success driver and can become an instrument in enabling

the regional growth plan. For example, TDRs in Bangalore

can be utilized in Udipi with an additional increase in the

FAR allowance. The increase can be decided collabora-

tively across the State with the local development authori-

ties. A regional program will require an efficient balancing

between sending and receiving zones. The planning

authorities of all regional municipalities must collaborate

while designing their development plans. The Municipal

Planning Committees will require to be formed and bring

various agencies together.

Land Use: Mapping the ground realities vs. the previ-

ous Development plans will allow us to recognize land use

trends and zone realistically.

Commentary: Analyzing the areas where land use

change has been requested, as well as the shift in land use

patterns will be required in order to zone and price TDRs.

Social and economic patterns often result in mixed use and

must be accommodated in the TDR process. In fact, TDRs

can be valuable in encouraging planned development. For

example, in areas where density restrictions are placing

artificial pricing barriers to housing access and economic

activity, zoning can be restructured and mixed use can take

a planned approach. TDR zoning can allow all residential

housing in neighbourhood centres additional restricted

commercial FAR through the purchase of TDRS. This

additional FAR can mandate uniform street alignment and

architectural treatment thus ensuring an attractive look and

feel. Similarly, commercial areas can be allowed additional

residential FAR to be purchased through TDRs in a man-

ner that controls and unifies building heights and the sky-

line.

5. Legal Disputes and Encumbrances

a) In the event of a particular property that has been

identified for acquisition is involved in a legal dispute then

the Authority shall acquire the property and issue Devel-

opment rights certificate after obtaining an order from the

Court of competent jurisdiction.

The Development rights certificate shall be issued on

the date of which the property is acquired.

Commentary: In mass land acquisitions, which are

done for widening of roads, building of new infrastructure

projects, there might be pockets of property that will be

entangled with land title disputes, partition disputes or

other forms of legal disputes.

b) In the event of a particular property which has been

identified for acquisition is not free from encumbrances, the

land shall vest in the authority till such time all the encum-

brances are cleared by the owner of the land.

The Development rights certificate shall be issued on

the date of which all property encumbrances are cleared by

the owner of the property.

6. Development Rights Certificate:

Development Rights Certificate shall be issued on the

date on which the land is acquired by the authorities.

7. Protection to the seller:

In the event of a property which has been partly ac-

quired by the authorities for the purposes identified in S.

14B of the Act, the seller has to be given an option either to

obtain a TDR for the entire property by forgoing it to the

authorities or to accept a TDR for the land acquired by the

authorities.

Commentary: For eg; In a property measuring 50 ft by

50 ft, the land required by the government for widening the

road is only 25 ft by 25 ft. If the Government acquires only

25ft by 25 ft, even though theoretically the other 25ft by

25ft is with the seller, the market value of that 25ft by 25ft

property is substantially reduced. Therefore we need to give

this option to the seller.

8. Lease and License:

In the event of a property that has been identified to

be acquired by the authorities for the purpose mentioned in



S. 14B of the Act; and if on such property; there is a lease

or license, then the authorities shall have to pay a compen-

sation for the development of such property to the extent of

fifty percent of the cost of such development.

The authorities shall determine the cost of the devel-

opment of the property upon the property tax paid by the

property developer.

Commentary: There might be several properties in

which the owner of the land has leased his/her land on

which the lessee has built a building. If this has to be ac-

quired for public purpose as mentioned in S. 14B of the

Act, then if the Government issues a TDR, that will only

benefit the land owner and not the property owner which

has been built on that land. Therefore it is important to

compensate even the owner.

The compensation shall be determined by the amount

of property tax that has been assessed by the owner of the

property. This could act as two fold check for the Munici-

pality. Firstly it will ensure that people pay property tax and

secondly it will ensure that property owners value their

property for the purpose of paying property tax.

9. Building condition:

The authority shall approve the building plan if a

TDR is being used to build addition floor area ratio on an

existing building.

Commentary: This will ensure the safety of the build-

ings. In some cases, if the TDR is being used to build addi-

tional FAR on an existing building which will not be able to

take the load of additional FAR, it might raise safety con-

cerns.

The Brihanmumbai Municipal Corporation (BMC)

has directed builders to reconstruct an entire building if

they want to use Transfer of Development Rights (TDR) to

increase the number of floors of existing buildings. In a

circular, effective June 1, 2003, the BMC has begun to give

TDR permission only to those builders who guarantee to

demolish the whole building and build a new one. We now

hear that this has subsequently been over-turned but is

causing issues of structural support extending outside the

original footprint in violation of set-backs and deteriorating

neighbourhood aesthetics.

We need to distinguish from the BMC as one of the

purposes for the issue of TDR is to build additional FAR

on existing buildings. Therefore to harmonise both the

safety and aesthetic concerns and also to grant additional

FAR, this section will act as a safety measure.

10. TDR Market:

The authorities shall facilitate for the growth of TDR

market. The authorities shall take the following steps to

facilitate the TDR market:

a. Identifying areas where growth is undesirable and

needs to be restricted.

b. Identifying areas of environment and ecological

concern. Identifying heritage sites and zones for preserva-

tion.

c. Assessing infrastructure capacity and growth ca-

pacity of the core city area.

d. Formulating zoning regulations and environmental

regulations restricting growth in the sending sites as well as

restrictions related to minimum infrastructure require-

ments.

e. Aid the process of estimating the buildable land

square footage / value in these sending sites that must be

compensated with TDRs

f. Re-formulate Land Use Conversion policy so that

applications are subject to far greater scrutiny on neigh-

bourhood impact and must involve local community opin-

ion.

Commentary: The ability to change Land Use with

ease is a current disincentive to TDR purchase. There is no

incentive to buy TDRs from commercial sending sites if

residential sites are cheaper and are allowed greater FAR

by easy land use conversion. Land use must be combined

with land price in assessing market value of TDRs.



Transfer of Development Rights in Karnataka

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Transcript of Transfer of Development Rights in Karnataka