The government has recently issued a clarification applying the revised market values to the transferable development rights (TDRs) issued by GHMC in lieu of monetary compensation during property acquisition for various development works.
As per the memo, market values indicated in any TDR certificate are not static, but dependent on the same prevailing at the time of redemption of the TDRs. This applies not only to the transactions henceforth, but also to the previously held unsold certificates, as per the orders. According to GHMC officials, the decision to apply prevailing rates will retrospectively benefit the unutilised TDRs already issued, by enhancing their collective value by ₹100 crore.
TDRs are the rights for sale or development issued to property owners whose land is acquired as part of the city’s infrastructural development projects, including road widening, construction of flyovers, elevated corridors, underpasses, and other structures.
They allow relaxation in permissible built-up area in lieu of property acquired for public purpose. The rights may be sold or utilised at the same place or elsewhere. Relaxation of built-up space admissible under TDRs has been enhanced to 400% of the plot surrendered, from the earlier 250% in 2018. The objective was to avoid monetary compensation in the times of fund shortage in GHMC vis-a-vis the development projects lined up for the city.
Owing to the fast paced development in city’s realty, demand for TDRs has grown by leaps and bounds, with GHMC issuing TDRs worth ₹3,500 crore so far, and saving up ₹1,700 crore funds in the bargain.
Demand for TDRs is especially high from builders who wish to build additional floors in the same setback spaces, officials informed.
GHMC has also launched a web portal for the transactions in TDRs where sellers and buyers may register for carrying out profitable business. Recently after revision of market values of land, several TDR holders have reportedly approached the GHMC higher authorities seeking revision in TDR values, as the certificates were showing older prices. A letter was addressed to the Municipal Administration and Urban Development department seeking clarification on their request, and taking their concerns into account, the government has issued a memo clarifying that the revised market values may be applied to the TDRs.
