Answered on October 23, 2025
Transfer of Development Rights (TDR) means making available certain amount of additional built up area in lieu of the area relinquished or surrendered by the owner of the land.
•Idea:
The idea of transferring development rights between properties was first introduced in New York City with the passage of that first American zoning ordinance in 1916. Many countries have since then adopted this system.
•Transferability:
The land owner can use Development Rights Certificate(DRCs) either himself or transfer it to another in need of the extra built up area for an agreed sum of money.
•Sources:
•Area relinquished for the public amenities such as road, garden, school etc.
•Slum Rehabilitation Scheme
•Loss of development rights due to restriction on development of Heritage building
•Rules and Guidelines:
•DRCs are issued by the Municipal Commissioner.
•DRCs states, in figures and in words, the FSI credit in square meters of the built-up area to which the owner or lessees of the said reserved plot is entitled, the place and user zone in which the DRCs are earned and the areas in which such credit may be utilised.
•The built-up area for the purpose of FSI credit in the form of a DRC is equal to the gross area of the reserved plot surrendered and is proportionately increased or decreased according to the permissible FSI of the zone where from the TDR has originated.
•Process of sale:
•The holder of DRC submits the DRC to the Commissioner with an appropriate application for an endorsement of the new holders name, i.e. transferee on the said Certificate.
•Without such an endorsement by the Commissioner himself, the transfer shall not be valid and the Certificate will be available for use only by the earlier original holder.
Earlier TDR was only applicable in Suburbs and in North Direction. But now it is Applicable throughout the City as per DCPR 2034.
The TDR Area is Indexed as per the Land Ready Reckonner Value of the Receiver and Giver.
