Scheme applicable to 11 cities, including Bengaluru
The much-discussed revised Transferable Development Rights scheme has finally come into effect in 11 cities of the state, including Bengaluru.
The state government has notified the rules for implementing the revised scheme, which envisages acquisition of land for infrastructure projects. Under the revised scheme, two times the value of the land to be acquired will be given as the TDR. Value of TDR under the old scheme that was implemented only in Bruhat Bengaluru Mahanagara Palike (BBMP) limits was 1.5 times.
Monetary compensation
However, property losers will have an option either to accept the TDR or seek monetary compensation, which will be fixed as per the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (Central Act) under the new scheme. Urban development authorities of these cities will have the power to issue TDR, according to the final notification on March 4, 2017.
The government has to merge old TDRs issued by BBMP till 2015 in the new scheme. The rules notified under the new scheme will apply to old TDRs also. The government suspended the old TDR scheme following complaints of its rampant misuse. BBMP had issued about 15 lakh sqm of TDR under the old scheme. Bangalore Development Authority will collect details of old TDRs from BBMP, verify their authenticity and enter them in a separate register, according to the notification.
Sources in the government said the Urban Development Department had proposed to offer an additional Floor Area Ratio (FAR) of 1.33, over and above permissible FAR as per zoning rules, to those who have the old TDR. But Department of Parliamentary Affairs and Legislation had objected to the proposal saying there was no provision for giving incentives under the Karnataka Town and Country Planning (Amendment) Act, 2015.
Unlike the old scheme, TDR under the new scheme is linked to the guidance value of land (also called the government value). This, town planning experts say, will prevent misuse of the scheme. Besides, the government has relaxed the setback rules for utilising TDRs to build additional floors on existing buildings. But TDR is not permissible if the plot is on a road less than 9 metres were.
Experts skeptical
Town planning officials are skeptical about the effectiveness of the revised scheme. Of the 15 lakh sq m of TDR issued by BBMP under the old scheme, around 10 lakh sq m has not been used yet. With huge amount of TDRs already available in the market, it is unlikely that there will be demand for fresh TDRs, the officials said. As a result, property losers may seek monetary compensation instead of TDR.
This would defeat the objective of the scheme. TDR was introduced since urban local bodies were unable to pay monetary compensation for land acquisition, official sources, who refused to be quoted, said. Besides, the existing permissible FAR limit in Bengaluru is very high. An 18-member expert committee formed to draft the revised TDR scheme had recommended reduction of permissible FAR from 3.25 to 2 in order to create a demand for TDR. But the government has not taken any measure in this regard.
Highlights
Revised TDR scheme has come into effect in 11 cities, including B’luru. TDR value will be twice the value of land to be acquired. Urban development authorities empowered to issue TDRs. Property losers can either accept TDR or monetary compensation. TDRs are saleable within the urban development authority limits.
