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Karnataka government plans to digitise and dematerialise transfer of development rights (TDR) certificates

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“This platform could be used by city corporations and Bruhat Bengaluru Mahanagara Palike (BBMP) in the state besides builders and developers. This will help in bringing the entire data regarding TDRs in the public domain,” said Reddy.

The Karnataka government plans to digitise and dematerialise transfer of development rights (TDR) certificates and develop a market on the model of stock exchanges. The state government has engaged NCDEX eMarkets (NeML), the web-based online commodities spot market and services firm, to develop an online platform to enable the trade of TDRs like equities. 

“Currently, there is no clarity and transparency on who holds TDRs and how much. We will soon go live with the new system where TDRs can be traded as shares,” said EV Ramana Reddy, additional chief secretary, department of information technology, biotechnology and science &technology, government of Karnataka.

The TDR scheme was introduced by the state government in 2006, but failed to take off. Under the TDR . scheme, Development Rights Certificates (DRCs) are issued to the land losers (whose properties are acquired) in lieu of financial compensation. It is thus a virtual property, which is two times the value of the land acquired. DRC holders can either use it for themselves to increase the built-up area on their properties or sell to those in need of it.

“This platform could be used by city corporations and Bruhat Bengaluru Mahanagara Palike (BBMP) in the state besides builders and developers. This will help in bringing the entire data regarding TDRs in the public domain,” said Reddy.

The Centre is also putting in place an automatic building plan approval mechanism within the BBMP limits. Currently, the system is in place across 151 urban local bodies in the state.

“This new method will start shortly and it will be time-bound. There will be joint inspections by the authorities too,” Reddy said.

Bengaluru is one of the top performing residential and commercial markets in the country and has the lowest inventory overhang among the top-7 cities at 15 months. India’s IT capital saw an increase of 41% in new launches in the quarter at 9,509 units, while housing sales fell marginally by 3%, data from PropEquity showed.

Under the TDR . scheme, Development Rights Certificates (DRCs) are issued to the land losers (whose properties are acquired) in lieu of financial compensation. It is thus a virtual property, which is two times the value of the land acquired. DRC holders can either use it for themselves to increase the built-up area on their properties or sell to those in need of it.


“This platform could be used by city corporations and Bruhat Bengaluru Mahanagara Palike (BBMP) in the state besides builders and developers. This will help in bringing the entire data regarding TDRs in the public domain,” said Reddy.

The Centre is also putting in place an automatic building plan approval mechanism within the BBMP limits. Currently, the system is in place across 151 urban local bodies in the state.

“This new method will start shortly and it will be time-bound. There will be joint inspections by the authorities too,” Reddy said.

Bengaluru is one of the top-performing residential and commercial markets in the country and has the lowest inventory overhang among the top-7 cities at 15 months. India’s IT capital saw an increase of 41 per cent in new launches in the quarter at 9,509 units, while housing sales fell marginally by 3 per cent, data from PropEquity showed.

Source: TNN

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