Did the uniform TDR policy will affect metropolis realty market?

Mumbai: Real estate experts say that the Mumbai city should have a separate Transfer of Development Rights policy (TDR) and the Maharashtra governments plan to have a uniform transfer of Development including Mumbai will destroy the property market of the metropolitan area.

The senior state government officials said that Devendra fadnavis - chief minister has already determined to have a uniform Transfer of development Rights (TDR) policy for the whole of Maharashtra.

What is TDR?

Suppose if an individual owns a property in Mumbai. If the government decides to declare the property as a reserved land (used as a garden or heritage property), then the individual will lose ownership and in-place TDR certificate will be issued by the government. This certificate will provide a right to an individual to sell an equal area of land which he has lost.
It means if the individual sells this certificate to a builder, then the builder will compensate the money which he has lost.

How the builder benefit?

The TDR certificate will allow the additional built up area (area that the certificate prescribes) to the builder to build additional floors in his project. At present, TDR certificates cannot be sold in south Mumbai.

How the uniform TDR affect Mumbai realty market?

Managing director at realty firm Liases Foras, Pankaj Kapoor says that the land value varies from Pune and Mumbai. Suppose if the Maharashtra government adopts a uniform TDR policy, an individual having an acre of land in Pune will be allowed to sell the property in Mumbai where the property prices are highflying. This will beat the Mumbai realty market hardly.

Way to come out?

Urban planner Pankaj Joshi says that if the Maharashtra Government goes with the uniform TDRs policy, then the state should include inducts. This will make sure that TDRs created in the rural and low value areas ought to be used only in same value areas not in high cost urban localities. If it is allowed to be used in high values localities the value of TDR should be reduced. Usage of low value areas TDRs in high cost urban localities creates destruction.

What’s the impressive outlook here?

President of NAREDCO, Sunil Mantri said Britishers made a separate law for Mumbai because when the Mumbai municipal corporation was formed in 1888 by the Britishers then it had a coastal area and multiple authorities; the land crunch was a big issue. So the island city land value is higher.

What the builders say?

Mantri developers say that if the government adopts uniform TDR policy then the city property market will destroy and development will be wedged.