A panel of experts has submitted a report to the Additional Principal Secretary of the Urban Development Department, Tushar Girinath, recommending changes to the Transfer of Development Rights (TDR) policy to improve Bengaluru’s road network. The delegation advised strengthening the existing TDR framework to encourage citizens to voluntarily surrender land for roads identified in the Master Plan and strategically important expansion projects.
H.M. Chandrasekhar, an education expert and real estate developer in Bengaluru, who was part of the delegation, stated that while Greater Bengaluru Development Minister Krishnabairegoud has published a list of roads requiring expansion, there is currently no plan for acquiring the necessary land. The report proposes making the TDR system more transparent, attractive, and effective by increasing the TDR multiplier to 400 percent, allowing additional floors without extra setbacks, and creating a land-value-based compensation system aligned with the principles of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
The recommendations also include mandating TDR usage in Karnataka Industrial Areas Development Board (KIADB) zones for buildings taller than five floors or with an FAR/FSI up to 5. Additionally, the panel suggested providing income tax and GST exemptions on TDR sales and stamp duty exemptions on TDR purchases. Retired IAS officer and former BBMP Commissioner B.H. Anil Kumar, who was also part of the delegation, highlighted that the current TDR market has collapsed due to widespread irregularities, including the issuance of certificates for non-existent buildings and areas exceeding the actual land surrendered.
Bengaluru urban planner Pramod N.S. argued against following Hyderabad’s unregulated FSI model, suggesting instead that FSI/TDR limits be determined based on road width and traffic capacity. He noted that while Hyderabad has wide roads and infrastructure for high-rises, Bengaluru’s roads are already congested, necessitating a maximum FAR of 3.25. Pramod emphasized that vertical development is preferable to horizontal expansion to distant areas like Devanahalli, which lack infrastructure, but warned that promoting high-rises without widening roads and upgrading sewerage systems would worsen congestion, citing Singapore as a model for prioritizing infrastructure upgrades.
Pramod pointed out that the cost of purchasing TDR is currently higher than premium FAR, which costs only one-third as much, making TDR unattractive to developers. He noted that TDR market activity has stagnated because 90 percent of demand is met through land acquisition following a High Court stay on the Peripheral Ring Road project. B.H. Anil Kumar advised abolishing the premium FAR system to make TDR more attractive, mandating that developers seeking to build taller than ten floors use TDR instead of premium FAR for additional floors.
Key recommendations include providing TDR equal to 400 percent of the voluntarily surrendered land area for Master Plan roads and strategic expansion projects, considering the Telangana/Hyderabad model. The panel suggested allowing additional floors without extra setbacks for voluntary landowners and implementing a system where TDR is granted based on land value rather than a fixed two-times multiplier. They also proposed establishing an online TDR platform or bank to register surrendered land, issue certificates, track usage, and record transactions, and integrating the TDR policy with Bengaluru’s long-term transport and traffic plan to identify priority road corridors.
