State govt tweaks rules on FSI related to TDR benefits

In a bid to woo landowners in Chennai Metropolitan Area who refuse to part with their properties for infrastructure projects, the State government has notified several benefits for the owners who come forward to accept transferrable development right (TDR) in lieu of their properties.
State govt tweaks rules on FSI related to TDR benefits

Chennai

According to a notification by the State Housing and Urban Development department dated December 24, the owner of the land is entitled to transfer of development rights irrespective of the floor space index permissible or development potential of the land surrendered. The notification also fixed rates for reselling the TDR. The notification is followed by an Amendment in Tamil Nadu Town and Country Planning Act which has introduced additional provisions for TDRs to provide statutory status in July 2018.
TDRs allow government to acquire land in exchange for development rights. TDR was introduced to cut the cost of land acquisition and expedite project implementation.
Housing and Urban Development Secretary Rajesh Lakhoni said that the government would provide either the cost of the land while acquisition or TDR. “It is up to the landowner,” he said. TDR allows landowners to develop properties or land in other parts of the city apart from selling the rights to developers. However, the TDR could be utilised after availing clearance from Chennai Metropolitan Development Authority (CMDA).
Landowners are entitled to 2.25 times the guideline value of the surrendered land if the land is surrendered for road formation, widening or for implementing any public infrastructure projects. If the land acquired for conservation as heritage sites or buildings, the extra guideline value would be provided through TDR.
Apart from fixing TDR rates, the notification also directs the planning authority to provide duplicate TDR certificate, if the landowners lost the certificates. The guideline value at the time of issue of TDR certificate or actual guideline value, whichever is higher, should be considered for the utilisation of TDR right. TDR certificates will be valid for 5 years from the date of issue.
While welcoming the move providing statutory backing for TDR and defining provisions, KM Sadhanandh, president, Association of Professional Town Planners, said that several landowners were hesitant to accept TDR as there were no clear provisions. “As the new provisions are framed, it will attract landowners. However, the government should make the TDR certificates bankable so that that the owner can avail loans mortgaging TDR,” he added.
He pointed out that the notification had provided only 5-year validity period and there is no clarification in case the TDR remain unused for 5 five years.

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