In a major urban planning reform, the Karnataka government has liberalised the Transferable Development Rights (TDR) system in Bengaluru, allowing Development Rights Certificates (DRCs) to be used anywhere within the Greater Bengaluru Area (GBA), transcending existing Local Planning Area (LPA) boundaries.
Previously, TDR utilisation was restricted to the issuing authority’s jurisdiction (e.g., BDA or BMICAPA), limiting the market’s reach. Landowners, hesitant to surrender land for public projects, often saw little value in TDRs because of these constraints. Some developers also exploited loopholes, using TDRs in unauthorized areas through collusion.
The latest government notification, issued Tuesday, aims to eliminate these issues. With GBA currently covering 709 sq km, and set to expand as BBMP absorbs peripheral zones, this move broadens the market and treats Bengaluru as one unified development zone. The BDA is now tasked with maintaining TDR utilisation records citywide, regardless of original jurisdiction.
Experts and industry voices are welcoming the change. A senior BBMP official hailed it as a “much-needed reform.” A city builder added, “This opens the door to more high-rise housing and helps meet the city’s growing urban demand.”
This is the second TDR reform in a year. In 2024, the government had permitted BBMP to issue TDRs for agricultural land—valued like residential plots—if converted via development charges, making TDRs more lucrative for landowners.
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