TDR Bank: The last resort to cash crunched BBMP

In a move to expedite the process of road widening in Bangalore, the BBMP council is all geared up to start a TDR (Transfer of Development Rights) bank. The cash-starved civic body has been pondering for quite sometime now to move ahead with the TDR scheme, despite having no answers for its financial mess. According to markets news, the real estate community of the city has fuelled such a move by the BBMP. Transferable Development Right certificates are generally endowed to property owners who hand-over their property to any civic agency, like the BBMP, in exchange of a lump-sum compensation. It stands as a tool for the government to obtain land for infrastructure work. The certificates offered by TDR can be utilized by the property owners to get relaxation in building norms such as expanding the permissible floor area.

History run

Two years back, BBMP announced to set up a TDR bank, where the civic body will only have the authority to buy and sell TDRs. However, such a bank was not set up due lack of finances. On discussing the advantages and disadvantages of TDR bank it was concluded that such initiatives will not be taken. However, the move had an adverse effect on the builders who were depended on the middlemen from whom they were purchasing TDRs to execute their high-rise construction projects in the city center. Going by the market news, around 32.5 lakh sq ft of land, priced at Rs 320 crore has been obtained via TDR.

Present scenario

TDR obtained by officials and individuals are in a fog. To get the complete data about TDR, the government proposed the creation of TDR bank and is in talks with nationalized banks to buy TDR from people and then purchase it from developers. In exchange to this, people will receive monetary compensation. The reason put up by BBMP for reviving TDR is that the city roads are extremely overcrowded and obtaining land under the Land Acquisition Act of the state is a very lengthy process. In a move to find solution for this and suffice people with compensation in exchange of their properties for road widening, the establishment of TDR has become a mandate. WIDENED ROADS Halagevaderahalli and Panthara Palya Road Chikkabanavara Ganigara Halli to Somashetty Halli Ring Road from Bannerghatta Road to Silk Board junction left and right sides Abbigere-Lakshmipura Road