TDR could fetch the former royal family around Rs. 260 crore

November 23, 2014 01:31 am | Updated 01:31 am IST - Bengaluru

The Development Rights Certificate (DRC) to be issued under the Transfer of Development Rights to the members of the erstwhile royal family of Mysuru for acquiring a part of the Bangalore Palace Grounds is believed to be the single largest land parcel receiving TDR here so far. If the members of the former royal family chose to sell the TDR, it could fetch them around Rs. 260 crore.

Of the approximate 472.16 acres of the palace grounds area, 15 acres and 39 guntas is being acquired for road-widening, and the family will be given TDR 1.5 times of the land surrendered.

Currently, the TDR rate in the industry for an area in A zone — intensively developed, which is most sought after — is about Rs. 2,500 a sq. ft and is likely to go up in the future. The total TDR, calculated at 1.5 times the land to be surrendered (15 acres and 39 guntas) by the former royal family comes to about 1.04 crore sq. ft.

“If we calculate the rate for the land based on the prevailing guidance value on Bellary Road and Jayamahal Road, the land is worth over Rs. 870 crore while the market rate of the land is at least twice that of the guidance value,” K. Ramesh, a real estate consultant, estimated. “So far, this is the largest land parcel receiving TDR,” he added.

Sources in the Bruhat Bangalore Mahanagara Palike also confirmed that this is the biggest land parcel in the city receiving TDR, as TDR given for road-widening works taken up in the recent past was only to individual sites.

What is TDR?

The Transfer of Development Rights (TDR) allows a property owner to receive additional extent of built-up area for having relinquished a part of his/her property. The property owner can either use this additional built-up area or transfer it to another property owner in need of additional built-up area for an agreed sum. Property owner gets the Development Rights Certificate (DRC). The Karnataka Town and Country Planning Act, 1961 has been amended to empower local bodies, BBMP in case of Bengaluru, to issue the DRC while acquiring land for road laying/widening or development of parks.

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