BENGALURU: As the city readies itself for its transition into a new transferable development rights (TDR) regime, many of those sitting on old TDR papers may not gain much as the additional built-up area is going to be linked to the guidance (market) value.
Since 2006-07, the BBMP authorities have been giving TDRs to compensate for the land acquired. TDR refers to the grant of additional built-up area to a landowner in return for the portion of a plot taken from him for a public project. The sweetener is that a TDR holder can sell it to others.
The BBMP authorities have issued TDRs worth two million sq ft and only less than half of it has been used. According to experts, including urban planning expert Shantappa Honnur, many TDRs are lying unused for want of a demand and due to a slump in the real estate market.
“The proposed policy links all TDRs to the guidance value. The notional built-up area will go up or down according to the guidance value of the receiving property,” Town and Country Planning Director BM Tirakana Goudara told ET. “The new concept will benefit everyone,” he added.
Earlier, authorities issued TDRs against zones classified as A, B and C based on the intensity of development. The most premium localities came under A. The quantum of TDR moved from low to high from zone A to C and a TDR could move only from zone A to C and not the other way round. However, the 2015 zonal regulations, notified by BDA, did away with those classifications providing for free movement of TDR across zones. “One problem with the policy now in force is that one could use the TDR from a low value property in a premium property without any reduction in area. The was causing bit of a problem,” Tirakana Goudara said.’
Such distortions flew in the face of the very purpose of creating zones, said Honnur. “The idea behind creating zones was to decongest the central business district. But the new BDA regulations had an opposite effect,” he added.
The real estate lobby , Credai, however, is not happy with the moves to bring old TDR stock into the new regime. “The old TDR was simple to understand and implement. If guidance value or market value is adopted as basis of arriving at notional land, it will complicate things and lead to misuse,” said JC Sharma, president of Credai, Bengaluru, and vice chairman at Sobha Developers. “We are engaging with the government to address our problem from a user perspective,” he added.
Credits ET Realty