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SWATI RAMANATHAN JAN 2005

TRANSFER OF DEVELOPMENT
RIGHTS  TDR

CONTENTS
GOVERNMENT OF KARNATAKA, URBAN DEVELOPMENT DEPARTMENT
This analysis of the Transfer of
Developments amendment and
COMMENTS ON THE PROPOSED
proposed regulations to the Kar- AMENDMENT AND REGULATIONS
nataka Town and Country Plan-
ning Act, 1961, is divided into
four sections.
SECTION 1: Development Scenario 2: a farmer is ap-
I. Development Scenarios Scenarios using TDRs proached by developers with an at-
using TDRs tractive price for his land in the
Scenario 1: the Opera House at
Bommanahalli CMC limits. The
the end of Brigade Road is a historic
II. Pre-existing conditions re- attraction of cash-in-hand over-
beautiful building which is in a di-
quired for successful im- weighs considerations of loss of shel-
lapidated condition. It is in a prime
plementation of TDRs ter, produce and regular income gen-
retail location and the owner can sell
eration. There is also the fear that the
his land for a price that will make
III. regulations for the success city’s growth will result in develop-
of TDR as a development him very wealthy. Developers will
ment acquisition The sale takes place
instrument. tear down the building and build a
and the developer monetizes the land
hi-rise commercial complex that will
to the maximum without considera-
IV. Additions and alterations make them a tidy profit.
tions to existing valleys, wetlands or
suggested to the proposed The city will be poorer for it
regulations 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 tanks. This has environmental reper-
TDR for the renovation and mainte- cussions to the greater region such as
nance of the Opera House. flooding, blocked drainage, depleted
A win for both the city and the ground water table, ecological distur-
owner. bance, etc, some of which will re-

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SWATI RAMANATHAN JAN 2005

quire municipal expenditure on recti- or hold on to the TDRs in anticipa- ing land in urban areas for construct-
fying measures. For example, roads tion of price hikes in land and sell it ing flyovers, etc and in the outer agri-
subject to flooding erode rapidly and at this future rate just as he might cultural areas to provide for housing
require frequent, expensive mainte- have sold his land. He can also developments, industrial and tech-
nance. “mortgage” his TDRs for capital nology corridors, highways, etc. The
What if the vulnerable areas with financial institutions as he would owners lose out on the valuation at
were deed restricted permanently in with his land. the market rate and on accruing any
exchange for commensurate TDRs to SCENARIO 4: The residents of long-term benefits of increased
the farmer. This can effectively pro- Lottegolannahalli in the Bytrannpura valuation. Options to individuals in
tect ecologically and environmentally city municipality have no Post Office, counteracting acquisition are limited
sensitive areas permanently. Record- public toilets, parks, playgrounds or a to preventive construction on their
ing conservation easements on their single public space. The time, energy land or using political influence in an
property, villagers can access financial and resources that the residents attempt to de-notify their property
gain through Development Credits spend on accessing basic facilities is from the acquisition process.
which they can sell and be utilized in enormous. This results in a low qual- Option Two: government to
specific jurisdictions, without forfeit- ity of life and productivity for the provide land at an alternative loca-
ing their land. The farmer continues residents and also has an impact on tion as in the case of slum reloca-
to farm his / her land while gaining real estate values. The corporator tions. This again has the issue of fair
income from the sale of his develop- and commissioner express their in- compensation in terms of valuation
ment rights which he can in turn put ability to address the residents’ re- and the issue of locational dissatisfac-
to use on his farm. The city’s green- quirements. Every inch of land has tion with the compensated land.
belt Bellandur lake been sold and there is no site set aside
can also be similarly protected. for civic amenities. As local political winds change,
The city preserves it’s sensitive areas What if privately owned vacant so do the zoning policies evolved by
such as wetlands, valleys, etc. without land can be identified as suitable for the development authorities. Moreo-
forcing the farmer to forgo develop- public amenity sites and the owner ver, as infrastructure evolves, the out-
ment profit. given TDRs in exchange for the land. lying areas to the city also become
Scenario 3: A property is in the This allows the owner to sell his more attractive to development.
path of a proposal for a road widen- TDRs to a developer or use it on any TDRs provides an alternative to the
ing by the BMP. The owner is forced other property that he owns to build above two options. It has two
to give up his land either partially or additional FAR. The community gets
entirely for the project since it is in much needed public spaces.
the larger public good and the gov-
ernment has rights of “eminent do- In the past, government had two op-
main”. In return he can either take tions to acquiring private land for
public use:
the rate prescribed by government for ACQUISITION IN THE PAST
compensation or perhaps accept an
alternative site under a current spe- Option One: to use eminent
cial scheme. He has no choice on domain which allows government
location. The government has to use acquisition rights on any private land
up precious financial resources to pay in the interest of providing public
for the acquisition. amenities, including housing. The
What if the owner is given land owner has no choice in the mat-
TDRs that allow him to either sell it ter. The government has a pre-
to a developer that will give him determined value for the land which private land will be acquired for public
market rates (without paying stamp it pays as compensation for the acqui- projects such as road widening, flyovers, metro
duties as in the conveyance of land), sition. This power is used in acquir- rail, etc.

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SWATI RAMANATHAN JAN 2005

advantages: • an efficient land pricing market


First, it allows government to to arrive at values for TDRs
acquire land without using tax rupees • a developer community that
which are in short supply, and second functions “efficiently” with the right
it mitigates / compensates the market incentives
• organised community partici-
“Taking” of private property for pation that has a voice in the TDR
public use in a manner that is more process for a particular site, either
fair to the owner. sending or receiving, or even pur-
As illustrated in the above sce- chase TDRs for their own resource
narios, TDR is a powerful tool that development
when used in the right manner works
to revitalize existing city centres and
neighbourhoods, preserves historic In India, none of the above is in
landmarks, provides opportunities for place which is a cause for cau-
tion in the use of a tool that can
low-income housing, reduces the be mishandled and misused.
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

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SWATI RAMANATHAN JAN 2005

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

KR Market

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


SECTION II
in TDR zoning and land use over time on land valuation.
However, true land market assessment is dependent on the
MINIMUM CONDITIONS FOR THE SUCCESS OF
TDRS IN KARNATAKA titling records as illustrated in the BDA example above.

Ownership / tenure of land that is clear and absolute LandUse and Zoning Plans e.g. CDP 2005 in Bangalore
Land Titles Integ ration with the city master-
Unless ownership is litigation free, the process of veri- plan
fication will incur huge investment in human resources,
time and procedures. The Lack of land titling and registra- A land use and zoning plan that incorporates the fol-
tion that assures ownership results in an artificial inflation lowing:
of land pricing. This was seen in the recent BDA site auc-  Sending Zones: identifying areas that will require the
tions at Banashankari where land was purchased at twice use of TDRs such as heritage sites, environmental protec-
the estimated market value due to the clear titling. tion lands, areas that have density in excess of infrastruc-
ture & service capacity, mobility corridors that are con-
Primary detailed, street-wise pricing data gested and require additional lanes, junctions that need
Land Market Assessment resolution, flyovers or underpasses and neighbourhoods in
The type of TDRs issued in exchange for land or for need of public amenities, etc.
protective zoning will vary depending on the value of the  Receiving Zones: identifying areas where growth is
said land. In order to ensure that the valuation of land is desirable. These areas must have easy access to utilities,
current and closely reflects the market conditions on the transportation, shopping, employment opportunities,
ground, a comprehensive streetwise market value assess- public services and existing development.
ment of land will be required within the city and area-wise  Land Use: Mapping the ground realities vs. the pre-
in the rural outskirts. The value of this assessment is three vious Development plans will allow us to recognize land
fold: one, it allows an equitable and efficient exchange of use trends and zone realistically. Analyzing the areas
buildable land with TDRs; two, it aids in assessing the price where land use change has been requested, as well as the
point where the financial benefit of building to the maxi- shift in land use patterns will be required in order to zone
mum FAR allowance is too great for owners and developers

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SWATI RAMANATHAN JAN 2005

and price TDRs. Social and economic patterns often re- and ecological concern. Identifying heritage sites and zones
sult in mixed use and must be accommodated in the for preservation.
TDR process. In fact, TDRs can be valuable in encourag- o Assessing infrastructure capacity and growth capacity of
ing planned development. For example, in areas where the existing city.
density restrictions are placing artificial pricing barriers to o Formulating zoning regulations and environmental
housing access and economic activity, zoning can be re- regulations restricting growth in the sending sites. Articulat-
structured and mixed use can take a planned approach. ing regulations to relate allowable density to minimum in-
TDR zoning can allow all residential housing in neigh- frastructure availability.
bourhood centres additional restricted commercial FAR o Aid the process of estimating the buildable land square
through the purchase of TDRS. Similarly, commercial footage / value in these sending sites that must be compen-
areas can be allowed additional residential FAR to be sated with TDRs
purchased through TDRs o Re-formulate Land Use Conversion policy so that ap-
plications are subject to far greater scrutiny on neighbour-
Partnering with the Developer Community; the planning hood impact and involve local community input. The abil-
authorities and the citizens ity to change Land Use with ease is a current disincentive
Developing a Market for TDRs to TDR purchase. There is no incentive to buy TDRs from
Stakeholder identification for the success of TDR:
commercial sending sites if residential sites are cheaper and
There are multiple stakeholders that will impact the success
are allowed greater FAR by easy land use conversion. Land
of the TDR policy. Unless these are identified and co-opted
use must be combined with land price in assessing market
from the start, the TDR will be an ineffective instrument.
value of TDRs.
Three key stakeholders are: planning authorities who will
o Identifying receiving sites
incorporate sending / receiving zones into their compre-
 Receiving areas must be identified such that they are
hensive plans; developer community; citizens
areas of sufficient demand for growth.
Encouraging TDR exchange between urban centres:
 The zoning must be designed such that higher den-
this does not really fall into the category of a pre-requisite.
sity is allowed only through the use of TDRs. Developers
It is a strategy for making TDRs more flexible and elastic
need to be encouraged to buy TDRs. If the allowable
geographically. However, in order for this elasticity to find
density is already high enough in the receiving areas, the
expression, integrated planning by multi-municipal plan-
developer has no incentive to purchase the TDRs. There
ning & development agencies in identifying sending / re-
must be a clearly established profit-making benefit to the
ceiving zones, etc. is a prerequisite.
developer in order to buy additional FAR.
 Developers are given the option to develop at a lower
SECTION III
FAR without the TDRs or buy TDRs and build at a
Regulations for the Success of TDR as a Development In- higher density. However, the density bonuses must be
strument. high enough that the developer finds it cheaper to buy
ENCOURAGING THE TDR MARKET development rights rather than land, however, not so high
that the development overwhelms the infrastructure ca-
Since TDR success is driven by supply and demand, it must pacity.
motivate sellers to sell and buyers to buy. Successful imple-  Receiving areas must be capable of receiving more
mentation requires the following aspects to be considered in than twice the TDRs generated by the sending sites to
the amendment to the act and its regulations: reassure developers on the usability and marketability of
TDRs
I. Development plans such as the Revised Com-  Inter-jurisdictional exchanges can become a key suc-
prehensive Plan 2005 in Bangalore, must rec-
cess driver and can become an instrument in enabling the
ognize the introduction of the TDR policy in
regional growth plan. For example, TDRs in Bangalore
the following ways:
o Identifying areas where growth is desirable and to be can be utilized in Udipi with an additional increase in the
FAR allowance. The increase can be decided collabora-
encouraged. Identifying areas where growth is undesirable
tively across the State with the local development
and needs to be restricted. Identifying areas of environment

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SWATI RAMANATHAN JAN 2005

authorities. A regional program will require an efficient One of the basic constitutional limitations on the
balancing between sending and receiving zones. The power to control land use is that it may not be used in a
planning authorities of all regional municipalities must confiscatory manner. A landowner may not be deprived of
collaborate while designing their development plans. The a reasonable return on or an equivalent private use of his
Metropolitan Planning Committees will require to be property. This basic constitutional protection applies even
formed and bring various agencies together. in the face of legitimate public purposes served by the regu-
lations in question. In any given municipality, however,
II. Procedural aspects in the use of TDRs there may be a number of planning goals which may be
o Designating a special zoning administrator for inconsistent with -- using land in such a way as to enable
facilitating TDR transfers is necessary. the owner to realize a reasonable return on his investment.
o Ensuring predictable costs, time and development The goals may relate to preservation of open space, areas
approvals will boost confidence with the developer commu- of particular scenic or environmental concern, historic
nity structures and agricultural land. From a planning view-
o TDR facilitating staff that provides public infor- point, the uses which ought to be made of such lands might
mation and procedural help, instructional literature, etc be strictly limited; but such limitations might, if imple-
o Creating a TDR bank which buys and sells TDRs mented, prevent the earning of a reasonable return by the
therefore reducing the burden of validation and govern- owner and might be held to amount to a confiscatory "tak-
ment procedural hurdles ing."
o Encumbrances on land Transfer of development rights is a land use regulation
o Removing complexities in inheritance procedures, technique which can let the municipality have its cake and
transfers, sale, etc. of TDRs will increase acceptance with eat it too. It can be used to ensure that the open space re-
the users quirements of the municipality's planning goals are met
without causing financial burden to landowners or restrict-
III. Facilitating Public opinion and support ing needed development.
o The Comprehensive plan is joined at the hip with
the TDR plan. Successful TDRs will require communities This section is divided into three parts:
to weave in their local area plans with the comprehensive RULES THAT ARE NOT HARMONIOUS WITH
plans through TDRs THE ACT
o These local and city / municipal plans must be COMMENTS ON THE EXISTING RULES
facilitated through discussions on environment protection, ADDITIONAL RULES AND COMMENTARY:
heritage preservation, public spaces requirements and issues
of growth such as housing and commercial activity. RULES THAT ARE NOT HARMONIOUS WITH
o Since the public is going to be affected by the re- THE ACT:
ceiving site increased density, this must be a consultative 1) Under S. 14 (b) Explanation, “public purpose” has
process where neighbourhood communities are encouraged been defined to include
to participate in identifying receiving areas, areas for pres- a) widening roads
ervation and requirements for public amenties b) providing parks& playgrounds
o The focus of development activities must priori- c) Maintaining heritage.
tize receiving areas. If proper sanitation, water-supply,
transport, shopping etc is supplied in these areas, greater But in the draft rules, “public purpose” has not been
density and development activities are made more attrac- included to mean:
tive to both the community and the developer. a) Rule 3 (i): it has been narrowed only to widening
of roads and for other public amenities which is mentioned
Additions and alterations suggested to the proposed in Explanations (i) and (ii) of Section 14(b). The issue in
regulations Explanation (iii) to Section 14 (b) has not been addressed in
SECTION IV the rules.

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SWATI RAMANATHAN JAN 2005

COMMENTS ON THE EXISTING RULES: a) The zoning shall be made in accordance with a
comprehensive plan The Comprehensive plan shall be
The three zones namely; residential, commercial and joined with the TDR plan.
industrial zones have to be clearly defined. Commentary: TDRs are regulatory tools designed to
Rule 5 (iv)- “revalidation fees”: It would be convenient facilitate land-use planning. Unlike most community com-
to have an higher transfer fees than validation fees because, prehensive plans, the transfer of development rights re-
To make DPR marketable we need to create incentives quires much more certainty of where development will
and not administrative hurdles happen and where it will not. TDR programs do more than
Since the revalidation fees will be prescribed by the preserve farmland, natural resources, and open space; they
authority and changes periodically upon several considera- change the way development occurs in a community. How-
tions such as zoning, ensuring the compliance of the same ever, TDR programs cannot be established in the absence
would be complicated. of a comprehensive plan. Implementation of a TDR in the
Rule 5(v) - “Normal transfer fees” has not been defined absence of true comprehensive planning represents a fail-
in the act or the rules. Therefore the inheritance fee, which ure to recognize that development credit values depend on
is 10% of the normal transfer fees has to be clarified. a stable and predictable real estate environment.

ADDITIONAL RULES REQUIRED AND SUP- b) These local and city / municipal plans shall be
PORTING COMMENTARY: facilitated through community discussions on environment
( the italicized points in the commentary are supple- protection, heritage preservation, public spaces require-
mentary notes for the purpose of clarity) ments and issues of growth such as housing and commer-
1. Need for separate and Specific Statutory Authority cial activity.
The Government shall appoint a special zoning ad- Commentary: Since the public is going to be affected
ministrator for facilitating the issue of TDR. by the receiving site increased density, this must be a con-
Commentary: There is no specific statutory authority sultative process where neighbourhood communities are
for enabling legislation for TDR. Since the Municipal encouraged to participate in identifying receiving areas,
Commissioner is already overburdened with his duties, it areas for preservation and requirements for public ameni-
will be extremely ineffective if he/she is also the nodal per- ties.
son for issuing a Development Rights Certificate. This is
one of the reasons why the TDR legislation has become 4. Development Plan
ineffective in Mumbai. Therefore a separate administrative The authority shall prepare an annual TDR plan
body has to be created which shall be responsible for the which will identify the land use and zoning plan and should
issuing of TDR. incorporate the following:
Sending Zones: The authority shall identify areas that
2. Publishing annual programmes: will require the use of TDRs such as heritage sites, envi-
The authority shall publish annual programmes for all ronmental protection lands, areas that have density in ex-
infrastructure projects and for projects undertaken for the cess of infrastructure & service capacity, mobility corridors
protection of heritage sites for granting transferable devel- that are congested and require additional lanes, junctions
opment rights. Notwithstanding this, in urgent cases the that need resolution, flyovers or underpasses and neigh-
authority may for reasons to be recorded in writing grant bourhoods in need of public amenities, etc.
development rights as and when considered appropriate Receiving Zones: The authorities shall identify areas
and necessary. where growth is desirable. The authorities shall take the
Commentary: If this data is available well in advance following steps in identifying receiving zones
then other authorities involved in urban development like Receiving areas must be identified and such that they
the Bangalore Development Authority can implement their are areas of sufficient demand for growth.
projects and calendar of events in an efficient manner. The zoning must be designed such that higher density
is allowed only through the use of TDRs. Developers need
3. Facilitating Land-Use Planning to be encouraged to buy TDRs. If the allowable density is

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SWATI RAMANATHAN JAN 2005

already high enough in the receiving areas, the developer ner that controls and unifies building heights and the sky-
has no incentive to purchase the TDRs. There must be a line.
clearly established profit-making benefit to the developer in
order to buy additional FAR. 5. Legal Disputes and Encumbrances
Developers are given the option to develop at a lower a) In the event of a particular property that has been
FAR without the TDRs or buy TDRs and build at a higher identified for acquisition is involved in a legal dispute then
density. However, the density bonuses must be high enough the Authority shall acquire the property and issue Devel-
that the developer finds it cheaper to buy development opment rights certificate after obtaining an order from the
rights rather than land, however, not so high that the devel- Court of competent jurisdiction.
opment overwhelms the infrastructure capacity. The Development rights certificate shall be issued on
3. Receiving sites must be capable of receiving the date of which the property is acquired.
more than twice the TDRs generated by the sending sites Commentary: In mass land acquisitions, which are
to reassure developers on the usability and marketability of done for widening of roads, building of new infrastructure
TDRs projects, there might be pockets of property that will be
4. Inter-jurisdictional exchanges can become a key entangled with land title disputes, partition disputes or
success driver and can become an instrument in enabling other forms of legal disputes.
the regional growth plan. For example, TDRs in Bangalore
can be utilized in Udipi with an additional increase in the b) In the event of a particular property which has been
FAR allowance. The increase can be decided collabora- identified for acquisition is not free from encumbrances, the
tively across the State with the local development authori- land shall vest in the authority till such time all the encum-
ties. A regional program will require an efficient balancing brances are cleared by the owner of the land.
between sending and receiving zones. The planning The Development rights certificate shall be issued on
authorities of all regional municipalities must collaborate the date of which all property encumbrances are cleared by
while designing their development plans. The Municipal the owner of the property.
Planning Committees will require to be formed and bring
various agencies together. 6. Development Rights Certificate:
Development Rights Certificate shall be issued on the
Land Use: Mapping the ground realities vs. the previ- date on which the land is acquired by the authorities.
ous Development plans will allow us to recognize land use
trends and zone realistically. 7. Protection to the seller:
Commentary: Analyzing the areas where land use In the event of a property which has been partly ac-
change has been requested, as well as the shift in land use quired by the authorities for the purposes identified in S.
patterns will be required in order to zone and price TDRs. 14B of the Act, the seller has to be given an option either to
Social and economic patterns often result in mixed use and obtain a TDR for the entire property by forgoing it to the
must be accommodated in the TDR process. In fact, TDRs authorities or to accept a TDR for the land acquired by the
can be valuable in encouraging planned development. For authorities.
example, in areas where density restrictions are placing Commentary: For eg; In a property measuring 50 ft by
artificial pricing barriers to housing access and economic 50 ft, the land required by the government for widening the
activity, zoning can be restructured and mixed use can take road is only 25 ft by 25 ft. If the Government acquires only
a planned approach. TDR zoning can allow all residential 25ft by 25 ft, even though theoretically the other 25ft by
housing in neighbourhood centres additional restricted 25ft is with the seller, the market value of that 25ft by 25ft
commercial FAR through the purchase of TDRS. This property is substantially reduced. Therefore we need to give
additional FAR can mandate uniform street alignment and this option to the seller.
architectural treatment thus ensuring an attractive look and
feel. Similarly, commercial areas can be allowed additional 8. Lease and License:
residential FAR to be purchased through TDRs in a man- In the event of a property that has been identified to
be acquired by the authorities for the purpose mentioned in

JANAAGRAHA Banagalore
SWATI RAMANATHAN JAN 2005

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- 10. TDR Market:
sation for the development of such property to the extent of The authorities shall facilitate for the growth of TDR
fifty percent of the cost of such development. market. The authorities shall take the following steps to
The authorities shall determine the cost of the devel- facilitate the TDR market:
opment of the property upon the property tax paid by the a. Identifying areas where growth is undesirable and
property developer. needs to be restricted.
Commentary: There might be several properties in b. Identifying areas of environment and ecological
which the owner of the land has leased his/her land on concern. Identifying heritage sites and zones for preserva-
which the lessee has built a building. If this has to be ac- tion.
quired for public purpose as mentioned in S. 14B of the c. Assessing infrastructure capacity and growth ca-
Act, then if the Government issues a TDR, that will only pacity of the core city area.
benefit the land owner and not the property owner which d. Formulating zoning regulations and environmental
has been built on that land. Therefore it is important to regulations restricting growth in the sending sites as well as
compensate even the owner. restrictions related to minimum infrastructure require-
The compensation shall be determined by the amount ments.
of property tax that has been assessed by the owner of the e. Aid the process of estimating the buildable land
property. This could act as two fold check for the Munici- square footage / value in these sending sites that must be
pality. Firstly it will ensure that people pay property tax and compensated with TDRs
secondly it will ensure that property owners value their f. Re-formulate Land Use Conversion policy so that
property for the purpose of paying property tax. applications are subject to far greater scrutiny on neigh-
bourhood impact and must involve local community opin-
9. Building condition: ion.
The authority shall approve the building plan if a Commentary: The ability to change Land Use with
TDR is being used to build addition floor area ratio on an ease is a current disincentive to TDR purchase. There is no
existing building. incentive to buy TDRs from commercial sending sites if
Commentary: This will ensure the safety of the build- residential sites are cheaper and are allowed greater FAR
ings. In some cases, if the TDR is being used to build addi- by easy land use conversion. Land use must be combined
tional FAR on an existing building which will not be able to with land price in assessing market value of TDRs.
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.

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