Maharashtra proposes scrapping of zoning in new TDR Regulation

 

* UDD issues draft of new TDR Regulation, invites suggestions/objections from people within a month
* Several changes proposed in the draft including formula for calculating FSI, construction amenity TDR, utilisation of TDR etc

Staff Reporter
In what could be a shocker for those who have got a sort of ‘monopoly’ over Transferable Development Rights (TDR) and who bought TDR for a particular zone to exploit the real estate boom to their advantage, Urban Development Department (UDD) of Maharashtra Government has scrapped zoning in the new TDR Regulation. If implemented in its present form, this may result in lowering of property prices even in prime areas of various cities including Nagpur.
UDD has issued the draft of proposed new ‘comprehensive revised regulation’ in respect of Transferable Development Rights and Accomodation Principle. The draft has been prepared in view of the provisions of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (popularly known as Land Acquisition Act). In the draft, it has been stated clearly, “For surrender of the gross area of the reserved plot, the owner shall be entitled for TDR irrespective of user zone in congested/non-congested area from where it is originated/generated.”
Effectively, this spells out scrapping of the contentious zoning for utilisation of TDR. Zoning has been at the root of massive TDR scam in almost every growing city. There were four zones -- A, B, C, D. Certain elements took advantage of zoning to establish their sort of ‘monopoly’ in TDR. The TDR in the form of FSI was higher in A and B zones and there were several takers, even willing to pay higher premiums. In ‘C’ zone, though ample TDR was available, there were only a few takers. As far as ‘D’ zone is concerned, not many evinced interest as the TDR generated there had to be consumed in the same zone.
As per the draft of new TDR Regulation, released on April 30, the entitlement for TDR in case of non-congested area shall be 200 per cent of the basic FSI up to a maximum FSI of 2.00. In case of congested area, entitlement for TDR has been proposed to be 200 per cent of the basic FSI up to a maximun FSI of 2.50. The owner/lessee is entitled for TDR of 185 per cent of the basic FSI up to a maximum FSI of 1.85 in case of non-congested area, and that up to a maximum of 2.20 in case of congested area; provided that levelling of the surrendered land and construction of the compound wall to such land is not insisted upon where it is not permissible according to prevailing Development Control Regulations (DCR) of respective municipal corporation.
Interestingly, these regulation shall not be applicable for TDR generated from construction of amenity or roads, slum TDR, and heritage TDR.
The proposed policy also links TDR to width of adjoining roads. Already, the people in Mumbai and other areas have expressed concern over this as it may result in lower Floor-to-Space Index (FSI) and buildable area, for buildings/structures going in for redevelopment. Further, a builder will get TDR of 0.5 as ‘maximum permissible utilisation of TDR on balance plot area’ if the width of adjoining road is 9-12 metres. Considering that the basic/normal FSI is 1, the builder will get a maximum FSI of 1.50 as ‘maximum limit of building potential’.
Similarly, if the road width is 12-18 metres, the maximum TDR (permissible utilisation of TDR on balance plot area plus basic/normal FSI) will be 1.75. The maximum TDR in terms of FSI in case of plots fronting on the road width of 18-24 metres is 2 (1+1). In case of road width of 24-30 metres, the maximum TDR in terms of FSI will be 2.25 (1+1.25). The total maximum limit of building potential in terms of FSI will be 2.50 in case of utilisation of TDR on plots fronting on road width of 30 metres.
Thus, sources said, in case of narrow roads, the builders interested in development will have to remain content with lesser TDR. This may directly affect the financial proportions of a building plan, especially in cases of redevelopment. Besides, it is like punishing others for narrow roads built by the respective planning authorities.
The draft elaborates on manner of development of reserved/designated sites in Development Plan (DP). It specifies principle for development through Accomodation Reservation for various reservations shown in DP viz. reservations for garden, play ground, recreation ground, cremation/burial ground, slaughter house, sewage treatment plan, educational institutions, town hall, town hall etc.
UDD has invited suggestions/objections from the people on the draft, which ‘supersedes all the earlier existing/proposed regulations and directives’ issued in respect of TDR and Accomodation Principle of all 25 Municipal Corporations in the State including four -- Nagpur, Chandrapur, Amravati, and Akola -- in Vidarbha region. The suggestions/objections have to be submitted to Joint Director of Town Planning of region concerned, and then the Government will take ‘final decision’. The notice of the draft regulation, issued on April 30, has been ordered to be displayed at the offices of Joint Director of Town Planning in various divisions including Nagpur and Amravati, and at the office of Director of Town Planning at Pune.

What is TDR?
Sometimes, development potential of a plot of land may be separated from the land itself and may be made available to the owner of the land in the form of TDR. These rights are made available when the planning authority concerned intends to acquire the land for development of various reservations (parks, sewage treatment plants etc) or public purpose (road construction, road widening etc).
TDR is available to owner for constructed amenity handed over the said planning authority. The owner or lessee of a plot of land reserved and to be acquired by planning authority for public purposes as proposed in DP, shall be eligible for award of TDR in the form of FSI which he may himself use or transfer to any other person.
In summary, if a land-owner or developer surrenders his land to respective planning authority (municipal corporation) for public purpose and offers to resettle for free the people displaced by infrastructure projects or slum-dwellers, he gets TDR. These rights entitle him for construction of a proportional area in the form of increased FSI for the area.

Construction Amenity TDR
The new regulation proposes a formula for TDR against construction and handing over built-up area of an amenity to planning authority. As per the formula, Construction Amenity TDR (in sq mtrs) can be arrived at by multiplying the cost of construction of amenity by 1.25, and the sum thus obtained be divided by land rate per square metre. The cost of construction of amenity as well as land rate both shall be as mentioned in Annual Statement of Rates published by Registration Department or as per the District Schedule of Rates prepared by Public Works Department annually, ‘whichever is acceptable by land-owner’.

Utilisation of TDR
The new regulation also proposes a formula for calculating the utilisation of TDR on receiving plot. TDR generated from any land use zone shall be utilised on any receiving plot irrespective of the land use zone. For the purpose, utilisation of development rights (in sq mtrs) on receiving plot can be arrived at by dividing the rate (in Rs per sq mtr) of generating plots in generating year by rate of receiving plot in generating year, and this sum is to be divided by TDR debited from Development Rights Certificate (DRC) in sq mtrs.
The DRCs may be used on one or more plots of land, and also on plots/land having DP reservations of buildable nature whether vacant or already developed. Also, the DRCs may be used on plots/land available with the owner after surrendering the required land to the planning authority under Accomodation Reservation Principle and also in case of a composite building. DRCs may also be used on balance plots/land available after surrendering the area under reservation to the planning authority.
However, the DRCs shall not be valid for use on receivable plots in following areas -- agricultural/no development zone/green zone/biodiversity park reservation in DP; area within the flood control line (Blue Line) or prohibitive zone as specified by Irrigation Department; coastal regulation zone; and where the permissible basic FSI is less than 1.

(02-05-2015)

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