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Transferable development rights

Transferable development rights in India : an analysis

June 11, 2021

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This article is written by Arunima Shrivastava, an advocate at Madhya Pradesh High Court. This is an exhaustive article which deals with the Transfer Development Rights in India.

Table of Contents

Introduction

Every growing country needs to develop infrastructure in the country. India is developing rapidly with huge economic growth and will be a superpower in the coming years. A purposeful policy is required to encourage infrastructure development and to promote government independence and rules and regulations. Today there are excellent opportunities with plans for investment in infrastructure sectors. Public-private partnerships are important in the development of the sector and at the same time, they are benefiting from the government. Transfer of Development Rights (TDR) land-based tools can be used to improve the sustainability and efficiency of land use in a proper way in relation to infrastructural development.

Infrastructural development in India

India is the fastest-growing country in the last 25 years, its burden is produced on the development infrastructure. Our Country develops the infrastructure of various places namely airports, railways, irrigation systems, highways, water supplies, sanitation systems, power generation, and distribution. All of the previously mentioned infrastructures are already in trouble due to improper management, infrastructure, and lack of facilities which tends to increase the pressure on the infrastructure development of India. Private investment is also proposed In Infrastructure Development. In India through Public-Private Partnerships, it will encourage the Private sector to come into infrastructure development areas for better development and efficient services for common people.

What are Transfer of Development Rights

Through the UDPFI Guidelines of Ministry of urban development, the Government of India defines Transfer of Development Rights as “Transferable Development Right means a development right to transfer the potential of a plot designated for a public purpose in a plan, expressed in terms of total permissible built space calculated on the basis of Floor Space Index or Floor Area Ratio allowable for that plot, for utilization by the owner himself or by way of transfer by him to someone else from the present location to a specified area in the plan, as additional built space over and above the permissible limit in lieu of compensation for the surrender of the concerned plot free from all encumbrances to the planning and development authority.”

Transfer of Development Rights (TDR) means providing a certain amount of additional built-up area in exchange for surrendered or surrendered area by the owner of the land so that he can either use the additional built-up area himself or transfer it to another transfer to Additional built up area for an additional amount of funds released by URB’s Urban Local Bodies (Municipal Bodies, Urban Improvement Trust, Urban Development Authority). The building is regulated under the bylaws or as a certificate with TDR guidelines formulated by the state government from time to time. In short, TDR enables the ability of development to be partially or fully transferred from one plot to another. In exchange for the land surrendered by the owner / private developer by the UDB, a TDR certificate will be issued free of all disabilities and through incentives declared by the state government:

As per the Policy State Affordable, Housing Policy in lieu of Floor Area Ratio (FAR) granted under Development of affordable houses.
As per the provision of Master Plan/ Sector Plan, the Development of Green spaces- Parks/ Open Spaces/Playgrounds /Water Bodies, etc.
Development of Public Parking lots.
As per Master Plan proposals, development of City level Facilities/other public purposes.
Slum Development under the slum rehabilitation scheme.
In lieu of land surrendered for other purposes as specified by the State Government.
Development of Master Plan/ Sector Plan roads including road widening.

Need for Transferable Development Rights

Every decade, the Indian population is growing to over 5 billion people. This rate of increase in population has a huge impact on Indian agricultural land, wildlife, environment, forest land, and also in the health of the society. Population increase affects primary infrastructure and public facilities like government health facilities, road network, sanitation system, drinking water etc. The central government established the ministry which prepares more well for urban and rural development, particular plans for the achievement of proper development. The Ministry of Development creates Urban development Planning and Implementing Authority for Urban development. The takeover was the major problem for the land of farmers and landowners for the development of the area. Many complications and controversies arise in the Land acquisition process. So avoiding all this The TDR concept has been introduced for the first time in India. Mumbai was the first city to implement this concept of TDR’s in Mumbai’s slum development.

Advantages of TDR

For necessary public purposes in urban Areas Preservation and carving of Land
As per present market value, Flexibility is to compensate landowners through issuing DRC which can be used
Less administrative costs and less monitoring to ULB than zoning (Tavares, 2003)
Potential for Fair Compensation to landowners.
Development without damage to nature
In framed time, planning and implementation of development possible
In Development plans, the Indian context has used for carving of roads and open spaces easily

Disadvantages of TDR

Any TDR program had inconclusive results
The TDR program designed for one locality cannot be used for another locality of the same population because the expectations and thinking of society vary from region to region and place to place.
Due to the personal hindrance of every landowner. It is very difficult to trace the seller and buyer of the land.
Successful implementation of the TDR program requires vast up-gradation of market knowledge.

Study of TDR available in Nashik

Nashik is a city in the state of Maharashtra or Northern Maharashtra which is also known as the city of grapes and plays a vital role as a Vegetable Supporter in Mumbai. Geographically, the city is located on the banks of the Godavari river in the western ghat of Maharashtra. This is the administrative headquarters and district headquarter of Nashik Division

Infrastructural Development of Nashik

Nashik district is pending at the door of the Ministry of Town Planning in Mumbai. As the state awaits the approval of the state government for infrastructure development. Nashik is famous for the slant type of weather and climate of the city. Hence, the need for a streamlined plan developed with the beautiful Faridabad Road network which is mentioned in the development plan.

The corporation made a lot of efforts to complete the DP roads in the city. Due to Kumbhmela held in Nashik in the previous year, the major fund will be received by Nashik. Not only fund work, the proper use and planning is also necessary and important. One of the major issues of infrastructure is road networks and flyovers in the city. Government had a need to create short flyovers on selected and critical locations/road networks to solve the city’s traffic problem. Today, Nashik city is at the stage where it can develop and become very healthy.

Specific Economic Zone (SEZ) Nashik

SEZ is located in Sinnar taluka of Nashik district. This is the establishment of Maharashtra’s first multi-product SEZ Reform and Development of following areas textile industry, Electronics, Electrical Sector Automobile, auto component industry Pharmaceuticals, biotech companies and Food Processing Plant. This Special Economic Zone is spread over 2500 Acres with the provision of well-developed infrastructure for maximum production and minimum logistics redundancy that stabilizes and develops the overall business performance efficiency. It is being developed by IndiaBulls with MIDC and with major industrial GoM’s infrastructure development agency with huge experience of development of industrial land in Maharashtra.

Transfer Development Rights in Nashik city

The Municipal Corporation Nashik City is divided into four zones Namely A zone, B zone, C, zone and D zone. The Transfer Development Rights rates are different for different zones.

TDR by Zone

The city of Nashik is divided into 4 regions in total. Distribution of Transferable Development Rights as is as follows.

Area A ‘ Type Zone: It consists of ‘A’ type field containing all ‘A’ crowded areas within the municipal area of Nashik. The city authority is shown as Gauthan which excludes the area under development plan like Village Makhmalabad, congested area of Muhsur Adgaon, Manpur, Dasak, Panchak, Anandwali, Gangapur, Satpur, Kamathwara, Ambad Khurd, Wadley, Chedi, which are Deolali, Pimpalgaon Khamb, Dahegaon etc. The municipal corporation is located outside the border. The area under Town Planning Scheme, Nashik comes under No.1 and it is also included in Zone A.
Area B ‘Type Area: Zone B includes the area under the Town Yojana Scheme, Nashik No.2, Area of Village Deoli, Within the municipal limits as given below Ards East: By Railway Line Towards North: By Nashik Pune Road Lam Towards West: Mahatma Gandhi Road (Lam road). South side: Subhash Road to M.G. TownRailway Station to Hall.
Area C ‘Type Zone: Zone C includes areas within the boundary The then City Council Nashik, Nashik Road, Excluding the areas of Deoli and Satpur sectors A and B. Figure-5 Nashik city municipal limits.
D ‘type zone: D remains in the zone Areas within the limits of the Nashik Municipal Corporation. Following are the areas of TDR in terms of individual FSI Areas of Nashik city.

Zone wise TDR Nashik City

A Type Zone TDR – 33244.51 Sq. M

B Type Zone TDR – 231996.07 Sq. M

C Type Zone TDR – 855866.50 sq.M

D Type Zone TDR – 689507.48 Sq. M

This shows that about half of the total TDR is available in the C type area of the city. so, there is scope in infrastructure development in the C-type sector. About 38% D type is available in the field and 13% in the B type region. A detailed list of TDRs issued within the city limits is attached in Appendix C.

Rules for TDR in Nashik

For any type of development with the use of TDR, a component certificate of authority is needed for the land developer.
FSI is allowed for the developer and development is as per permission TDR by GoM and Town Development Authority Of India.
Development Rights Certificate (DRC) to be issued by the municipal commissioner.
The council to which Floor Space Index (FSI) is allowed includes the area.
When the owner also develop/builds for the surrendered plot at his expense, then it is subject to receive such stipend may be determined by commissioner rights
Surrendered reserved land, for which a DRC to be released, will become fully Corporation / appropriate authority.
Where the corporation is a suitable Authority, the land will be absolutely vested Corporation.
Where the State Government, Govt./Undertaking/Organization etc. governing appropriate land will be Absolutely rooted in state government.
Where appropriate authority is other than Above (A) and (B), the land will be exactly the vest Corporation will hand over the said land To the appropriate authority.
No TDR for Town Planning Scheme reservation/offer will be allowed

Development right certificate

Development Rights Certificate is a certificate given by the competent government official against distribution of land for infrastructure development in public interest. Such a certificate is awarded to sell the rights to the person holding the property who wants to buy rights in terms of floor space index. The documents are as follows

Application for Development Rights Certificate.
Application for permission for development rights certificate.
Form with the application for grant of D.C. under development rights certificate.

Regulation

Form of the certificate to be signed by the license Surveyor/architect.
Complaint for affidavit given by the owner.
Owner Compliance Report.
Registered Enterprise.
Certificate of Development Correct Certificate.

Above mentioned list of documents that are required Submit by land owner who wants to get Development certificate

Conclusion

Cities are growing rapidly due to the business opportunities and availability of jobs in the urban area. The population of rural areas is migrating itself towards the urban center. It is the duty of the government to provide adequate and proper infrastructure to enhance the lifestyle of the people. TDR is one of the effective land-based tools that give a very effective solution for land acquisition issues in Urban areas. It helps to lessen conflict between landowners and Municipal bodies. This paper explains the total TDR land available in Nashik city. It seems like very few TDRs are available in zone A of the city. This means that infrastructure development is sufficient for no land required for Zone A and beyond development. Zone B’s Medium Growth Infrastructure, as 13% TDR is available in Zone C and Zone D require more attention because they have very little infrastructure development, as in Zone C, 47 % TDR available and Zone D has 38% TDR available. There is scope for further work in zones C and D.

Effective use of TDR concept can lead to proper development be achieved very effectively. TDR can be used for different projects with different amounts in different slots. In the above case study the TDR of 696.00 sq.m. is used in six different slots. A more flexible environment is available for the development of zones and areas of the city.

References

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