Regulations for Grant of Transferable Development Rights in UDCPR 2020

UDCPR 2020 Chapter 11 is all about the Acquisition And Development Of Reserved Sites in Development Plans as per mentioned in the UDCPR 

This is Applicable to all Planning Authorities and Regional Plan Areas except Municipal Corporation of Greater Mumbai, Other Planning Authorities/Special Planning Authorities/ Development Authorities within the limit of Municipal Corporation of Greater Mumbai, MIDC, NAINA, Jawaharlal Nehru Port Trust, Hill Station Municipal Councils, Eco-sensitive/Eco-fragile region notified by MoEF & CC and Lonavala Municipal Council, in Maharashtra.

Rule No. 11.2 Regulations for Grant of Transferable Development Rights

11.2.1  Transferable Development Rights

Transferable Development Rights (TDR) is compensation in the form of Floor Space Index (FSI) or Development Rights which shall entitle the owner for construction of built-up area subject to provisions in this regulation. This FSI credit shall be issued in a certificate which shall be called as Development Right Certificate (DRC).

Development Rights Certificate (DRC) shall be issued by the Authority under his signature and endorsed thereon in writing in figures and in words, the FSI credit in square meters of the built-up area to which the owner or lessee is entitled, the place from where it is generated and the rate of that plot as prescribed in the Annual Statement of Rates issued by the Registration Department for the concerned year.TDR generated within the jurisdiction of a particular Authority, shall be utilized within the jurisdiction of the same Authority as per this regulation.

11.2.2 Cases Eligible for Transferable Development Rights (TDR)

Compensation in terms of Transferable Development Rights (TDR) shall be permissible for -

i) Lands under various reservations for public purposes, new roads, road widening, etc., which are subjected to acquisition, proposed in Draft or Final Development Plan, prepared under the provisions of the Maharashtra Regional and Town Planning Act, 1966.

ii) Lands under any deemed reservations according to any regulations prepared as per the provisions of the Maharashtra Regional & Town Planning Act, 1966.

iii) Lands under any new road or road widening proposed under the provisions of Maharashtra Municipal Corporation Act, Maharashtra Municipal Council, Nagar Panchayat, and Industrial Township Act.

iv) In the case where the layout is submitted along with the proposed Development Plan Road, in such cases TDR shall be permissible for the entire road width as per these regulations.

v) Development or construction of the amenity on the reserved or deemed reserved land.

vi) Unutilized FSI of any structure or precinct which is declared as a Heritage structure or precinct under the provisions of Unified Development Control and Promotion Regulations, due to

restrictions imposed in that regulation.

vii) In lieu of constructing housing for slum-dwellers according to regulations prepared under the Maharashtra Regional & Town Planning Act, 1966.

viii) For handing over land to the Authority for development of housing under PMAY by the Authority.

11.2.3 Cases not eligible for Transferable Development Rights (TDR)

It shall not be permissible to grant Transferable Development Rights (TDR) in the following circumstances :-

i) For earlier land acquisition or development for which compensation has been already paid partly or fully by any means.

ii) Where an award of land has already been declared and which is valid under the Acquisition Act or the Right to Fair Compensation & Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 unless lands are withdrawn from the award by the Appropriate Authority according to the provisions of the relevant Acts.

iii) In cases where the layout has already been sanctioned and layout roads are incorporated as Development Plan roads prior to these regulations.

iv) If the compensation in the form of FSI/or by any means has already been granted to the owner.

v) Where lawful possession including by mutual agreement/or contract has been taken and such agreement does not provide for TDR.

vi) For an existing user or retention user or any required compulsory open space or recreational open space or recreational ground, in any layout.

vii) For any designation, allocation of the use or zone which is not subjected to acquisition.

viii) Existing nallah, river, natural stream, natural pond, tank, water bodies, etc.

ix) Reservations that are not developable under the provisions of UDCPR.

x) For the lands owned by the State Government.

11.2.4 Generation of the Transferable Development Rights (TDR)

Transferable Development Rights (TDR) against surrender of land :-

a. For surrender of the gross area of the land which is subjected to acquisition, free of cost and free from all encumbrances, the owner shall be entitled to TDR or DR irrespective of the FSI permissible or development potential of such land to be surrendered and also that of land surrounding to such land at the rate given below :-

Note :-

i) The quantum of Transferable Development Rights (TDR) generated for reservation in the area having total legal impediment/constraint on construction or development like CRZ/Hazardous zone/Low-Density zone, shall be 50% of TDR generated as prescribed above.

ii) The quantum of Transferable Development Rights (TDR) generated for Bio Diversity Park reservation shall be 8% of the gross area.

(Explanation: The above entitlement may also apply to the compensation paid in the form of FSI to the owner to be utilized on the unaffected part of the same land parcel, and in such cases, the procedure of DRC shall not be insisted.)

Provided that, if leveling of land and construction/erection of the compound wall/fencing as per Clause (b) below to the land under surrender is not desirable considering the total area of reservation, the quantum of TDR shall be reduced to 1 : 1.85 and 1 : 2.85 in non- congested area and congested area respectively. In such cases, the owner shall also have an option of paying the cost of the construction of a compound wall (as decided by the Authority) without reducing the quantum of TDR.

Provided further that such construction/erection of compound wall/fencing shall not be necessary for area under development plan roads. In such cases TDR equivalent to entitlement as mentioned above shall be granted without any reduction.

Provided also that Additional/incentive Transferable Development Rights (TDR) or Development Rights (DR) to the extent of 5% of the surrendered land area shall also be allowed to the land owners who submit the proposal for grant of Transferable Development Rights (TDR) of land reserved in the development plan, within 2 years from the sanction of these regulations.

Provided that the quantum of generation of TDR as prescribed above, shall not be applicable for TDR generated from the construction of amenities or construction of reservation/deemed reservations/roads, Slum TDR, Heritage TDR.

b. DRC shall be issued only after the land is surrendered to the Authority, free of cost and free from encumbrances, after leveling the land to the surrounding ground level, and after constructing/ erecting a 1.5 m. high compound wall/fencing, i.e., brick/stone wall up to 0.60 m. above ground level and fencing above that up to the remaining height with a gate, at the cost of the owner and to the satisfaction of the Authority.

c. If any contiguous land of the same owner/developer, in addition to the land under surrender for which Transferable Development Rights (TDR) is to be granted, remains unbuildable, the Authority may grant Transferable Development Rights (TDR) for such remaining unbuildable land also if the owner/developer hands it over free of cost and free from all encumbrance and encroachment. If such land is from the proposed roads then such land shall be utilized for roadside parking, garden, open space, or roadside amenities including bus bays, public toilets, or any compatible user as the Authority may decide and if the such land is from the proposed reservation then same shall be included in such proposed reservation and shall be developed for the same purpose.

d) In the case of the lessee, the award of Transferable Development Rights (TDR) shall be subject to the lessee paying the lessor or depositing with the Authority for payment to the lessor, an amount equivalent to the value of the lessor's interest to be determined by the Authority on the basis of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 against the area of land surrendered, free of cost and free from all encumbrances.

e) Where the authority has taken the possession of the reserved land in the development plan with the commitment of granting TDR / DRC in the past and DRC is not issued, in such cases, DRC shall be issued for the quantum as per this UDCPR.

11.2.5 Transferable Development Rights (TDR) against Construction of Amenity -

When an owner or lessee, with prior approval of the Authority, develops or constructs the amenity on the surrendered plot, at his own cost subject to such stipulations as may be prescribed and to the satisfaction of the Authority and hands over the said developed/constructed amenity free of cost to the Authority, then he may be granted a Transferable Development Rights (TDR) in the form of FSI as per the following formula :-

Construction Amenity TDR in Sq.m. = A / B * 2.00 Where,

A = cost of construction of amenity in rupees as per the rates of construction mentioned in Annual Statement of Rates (ASR) prepared by the Inspector General of Registration for the year in which construction of amenity is commenced. (In the case of the construction of a new D.P. road, the cost of construction as worked out on the basis of the District Schedule of Rates.)

B = land rate per Sq.m. as per the Annual Statement of Rates (ASR) prepared by the Inspector General of Registration for the year in which construction of amenity is commenced.

In the case of buildings like auditoriums, assembly, etc. wherein the height of the building is higher, the cost of the building may be worked out from the Public Works Department as per applicable DSR. Also, expenses for ancillary requirements only of immovable items like acoustic, etc. may also be included in such cost. Such expenses for ancillary requirements may also be considered for hospital and educational buildings.

If any person, with the consent of the authority, constructs the D.P. road by obtaining development rights/consent of the other owners whose land is covered under the D.P. road, then such person may be entitled for construction amenity TDR subject to -

i) This provision shall only apply to the construction of a new road proposed in the Development Plan.

ii) One end of the road should meet other existing public roads.

iii) The specifications for the construction of the road shall be as decided by the Authority.

11.2.6 Utilisation of Transferable Development Rights (TDR)

i)  A holder of DRC who desires to use FSI credit therein on a particular plot of land shall attach valid DRCs to the extent required with his application for development permission. Proposal for Transferable Development Rights (TDR) utilisation shall be submitted along with the documents as may be prescribed by the Authority or by the Government from time to time.

ii)  With an application for development permission, where an owner seeks utilization of DRC, he shall submit the DRC to the Authority who shall endorse thereon in writing in figures and words, the quantum of the TDR proposed to be utilized, before granting development permission. Before issuance of the Occupation Certificate, the Authority shall endorse on the DRC, in writing in figures and words, the quantum of TDR/DRs actually used and the balance remaining, if any

iii)  The Transferable Development Rights (TDR) generated from any land use zone shall be utilized on any receiving plot irrespective of the land use zone including development plan reservations of a buildable nature and anywhere in the congested or non-congested area or town planning scheme area earmarked on Development Plan. The equivalent quantum of Transferable Development Rights (TDR) to be permitted on the receiving plot shall be governed by the formula given below :-

Formula: X = (Rg / Rr) x Y Where,

X= Permissible Utilisation of TDR/DR in sq.m. on receiving plot.

Rg = The Rate for land in Rs. per sq.m. as per the ASR of generating plots in the generating year. 

Rr=  Rate for land in Rs. per sq.m. as per ASR of receiving plot in generating year. 

Y= TDR debited from DRC in sq.m.

11.2.7  Utilisation of Transferable Development Rights (TDR) and Road Width Relation

i) The total maximum permissible built-up area and utilization of Transferable Development Rights (TDR) on the receiving plot shall be, as per Regulation No.6.1, 6.2, and 6.3.

ii) The quantum of maximum permissible TDR loading mentioned in Table 6-G of Regulation No.6.3 shall include a minimum 30% and a maximum of 50% slum TDR/URT/Amenity TDR (wherever applicable). If such TDR is not available, the other TDR may be used. Moreover, this shall not be applicable for TDR loading mentioned in Regulation No.6.1.1. Table 6-A.

iii) The utilization of Transferable Development Rights (TDR) shall be permissible by considering (1) the provision mentioned in Note (xiv) below Table No.6-G of Regulation No.6.3.

11.2.8  Areas Restricted from Utilisation of Transferable Development Rights (TDR)

Utilization of Transferable Development Rights (TDR) shall not be permitted in the following areas :-

a. Agricultural/No Development/Green Zone/Green Belt/Regional Park/HTHS Zone and Bio Diversity Park reservation in the Development Plan.

b. Area within the flood control line i.e. blue line (prohibitive zone) as specified by the Irrigation Department.

c. Coastal regulation zone.

d. Area having developmental prohibition or restrictions imposed by any notification issued under the provisions of any Central/State Act (like CRZ regulations, Defense restriction areas, etc.) or under these regulations.

c. Koregaon Park area in Pune Municipal Corporation area.

11.2.9 General stipulation

i) Development Rights (DRs) will be granted to an owner or lessee, only for reserved lands that are retainable and not vested or handed over to the Government/Urban Local Bodies and not exempted under section 20 or 21 of the then Urban Land (Ceiling and Regulations) Act, 1976 and undertaking to that effect shall be obtained, before a Development Right is granted. In the case of schemes sanctioned under section 20 or 21 of the said Act, the grant of Development Rights (DRs) shall be to such extent and subject to the conditions mentioned in section 20 or 21 scheme and such conditions as the Government may prescribe. In the case of non-retainable land (surplus land), the grant of Development Rights shall be to such extent and subject to such conditions as the Government may specify. The provisions of this Regulation shall be subject to the orders issued by the Government from time to time in this regard.

ii) In case of lands having tenure other than Class-I, i.e. Inam lands, tribal lands, etc., N.O.C. from the Competent Authority shall be produced by the landholder at the time of submission of application for grant of TDR.

iii) DRC shall be issued by the Authority as a certificate printed on bond paper in an appropriate form prescribed by him. Such a certificate shall be a “transferable and negotiable instrument” after the authentication by the Authority. The Authority shall maintain a register in a form considered appropriate by him of all transactions, etc. relating to the grant of, or utilization of DRC.

iv) The Authority shall issue DRC within 90 days from the date of application or reply from the applicant in respect of any requisition made by him, whichever is later.

v) The TDR shall be granted only for those reservations that are developable for the intended purpose under these regulations.

11.2.10 Transfer of DRC

The Authority shall allow the transfer of DRC in the following manner :-

i)  In case of death of the holder of DRC, the DRC shall be transferred only on production of the documents, as may be prescribed by him, from time to time, after due verification and satisfaction regarding title and legal successor.

ii) If a holder of DRC intends to transfer it to any other person, he shall submit the original DRC to the Authority with an application along with relevant documents as may be prescribed by the Authority and a registered agreement which is duly signed by the Transferor and Transferee, for seeking the endorsement of the new holder's name, i.e., the transferee, on the said certificate. The transfer shall not be valid without endorsement by the Authority and in such circumstances the Certificate shall be available for use only to the holder/transferor.

The utilization of TDR from such a certificate shall not be permissible during the transfer procedure.

iii) The Authority may refrain the DRC holder from utilizing the DRC in the following circumstances :-

a)  Under direction from a competent Court.

b)  Where the Authority has reason to believe that the DRC is obtained

a) by producing fraudulent documents  b) by misrepresentation,

iv) Any DRC may be utilized on one or more plots or lands whether vacant, or already developed fully or partly by the erection of an additional storey, or in any other manner consistent with the these Regulations.

v) DRC may be used on plots/land having Development Plan reservations of buildable nature, whether vacant or already developed for the same purpose, or on the lands under deemed reservations, if any, as per these Regulations or on amenity space.

vi) DRC may be used on plots/land available with the owner after surrendering the required land and construction to the Authority under the provisions of Accommodation Reservation. In such circumstances, for the purpose of deciding the receiving potential of the plot for the Transferable Development Rights (TDR), the total area of the reservation before surrender shall be considered.

11.2.11  Infrastructure Improvement Charges -

No infrastructure improvement charges shall be paid for the utilization of TDR.

11.2.12 Vesting of Land 

The Authority, before issuing DRC, shall verify and satisfy himself that the ownership and title of the land proposed for surrender is with the applicant, and get the Record of Right corrected in the name of Authority.

In case the Appropriate Authority for reservation is other than the Authority, it shall be permissible for the Authority, on the request of such authority to grant TDR under this regulation and hold such possession as a facilitator.

Provided that, the Authority shall hand over the possession of such land to the concerned Appropriate Authority, after receipt of the value of land, from such Appropriate Authority as per the Annual Statement of Rates prevailing at the time of handing over possession of land under reservation.

Provided also that, if such Appropriate Authority is the State Government or State Government Department, the Authority shall handover the possession of such land to the concerned Department, free of cost.

11.2.13 Effect of this Regulation

DRC issued under the old regulations as per TDR zone, shall be utilized as per these regulations considering the year of generation of TDR mentioned on the original DRC and accordingly land rate in the relevant ASR shall be considered.

Provided also that old TDR purchased as per TDR zones for utilization on a specific plot with registered documents of sale and/or specific proposal for utilization of such TDR pending in the ULBs, shall be allowed completely as per the old regulations.

Rule No. 11.3 Reservation Credit Certificate (RCC)

The reservation credit certificate is a certificate specifying the amount of compensation in lieu of handing over of reserved land to the Corporation and shall be issued by the Authority. The amount mentioned in this credit certificate may be used for payment of various charges like development charges, premiums, property tax, infrastructure charges, etc. to the authority from time to time in the future till exhausting the amount mentioned therein. Reservation Credit Certificate shall be issued subject to the following conditions.

i) The authority shall acquire the land under reservation in lieu of RCC only when it is immediately required for the development or creation of amenities or services or utilities.

ii) Such certificate shall not bear any interest on the amount mentioned therein and shall be transferable. However, payment being made to the authority through the amount from RCC after six months from the date of issue of RCC shall be discounted @ 10% for the payments to be made under provisions of these UDCPR.

iii) The amount of compensation to be paid to the owner shall be as per the provisions of the relevant Acts dealing with land acquisition as amended from time to time.

iv) The land to be handed over to the Corporation shall be free from all encumbrances and procedures laid down in TDR regulations shall be followed.

The Authority shall endorse the entries of payment on such certificate from time to time. It shall maintain a record in a form considered appropriate by it of all transactions relating to the grant of the utilization of reservation credit certificate.

Related Regulations to Rule No. 11- 

You can visit our other blog on Regulation 11 through the below-mentioned links:

Manner of Development of Reserved Site in Development Plan (Accommodation Reservation Principle) in UDCPR 2020