Pune: The state government is mulling over the option of letting citizens engage in online trading of transferable development rights (TDR) to ease the land acquisition process for infrastructural projects. This move will also ensure transparency and fast-tracking in the land acquisition process.
The housing department of Maharashtra state government is preparing a new housing policy. A meeting was recently conducted in this regard at Mumbai which was chaired by Principal Secretary (Housing) SVR Srinivas. Several proposals for bringing transparency in the TDR process and to empower the housing and real estate sector were discussed in the meeting. These proposals included the policy about allowing citizens to trade TDR online.
Land acquisition for infrastructure projects in the city has become a complicated and time-consuming process. The Pune Municipal Corporation (PMC) had in 1991 included the TDR concept in its laws in order to facilitate the land acquisition process for projects without incurring any additional fiscal burden. However, since the TDR rates are very low, landowners are not keen on giving away their assets to the PMC in exchange for TDR.
Nowadays, more and more property owners are demanding cash compensation during the land acquisition process. If the cash compensation trend continues then civic bodies may have to pay thousands of rupees in cash to acquire land for various projects.
Keeping these challenges in mind and in order to ease the land acquisition process, the option of allowing citizens to trade TDR online was discussed during the housing policy meeting. Currently, the TDR is purchased by the builders directly who wish to utilise it. Common citizens do not invest in this trade.
Nilesh Padale, a landowner, while speaking with Sakal said, “My land plot has been marked as a reservation in the development plan of the PMC. I can’t afford to purchase the TDR in exchange for my asset. If I can engage like the share market, in online purchase or sale of the TDR, then I can benefit from it.”
Guaranteed profit for investors
In the present traditional system, the government rates are applicable for the year when the TDR is generated. This rate is permanent and can’t be modified if someone wishes to utilise the TDR a few years later.
According to the new policy changes, the current year rates will be applicable for TDR purchase. The government rates (ready reckoner) increase by 5 to 15 per cent every year so investors will get guaranteed profits against their investments. This will boost demand for TDR and the land acquisition process will get fast tracked.