How TDR Works
| Step | Party | Action |
|---|---|---|
| 1 | Municipal Authority | Acquires land for road widening — issues TDR certificate to landowner |
| 2 | Landowner | Sells TDR certificate in open market to builder |
| 3 | Builder | Uses TDR to add extra floors beyond normal FSI in housing project |
| 4 | Planning Authority | Approves the building plan with TDR-enabled extra floors |
| 5 | Buyers | Purchase flats in taller project — more supply at competitive prices |
Types of TDR in Mumbai
| TDR Type | Source |
|---|---|
| Road TDR | Land surrendered for road widening |
| Slum TDR | Slum rehabilitation projects under SRA |
| Heritage TDR | Heritage building owners who cannot develop their property |
| Airport TDR | Land near airports surrendered for safety buffer zones |
For flat buyers: TDR-enabled projects are perfectly legal — the planning authority approves all construction including TDR-enabled floors. The OC covers all floors. Verify RERA registration shows the correct number of approved units and total FSI used.
Related Terms
Frequently Asked Questions
TDR (Transfer of Development Rights) is a certificate issued by the local authority to landowners whose land is acquired for public purposes. Instead of cash, they get a certificate allowing extra construction rights. Builders buy these to add extra floors beyond normal FSI limits in their housing projects.
Builders buy TDR certificates to access additional FSI beyond the base entitlement on their plot. This allows them to build taller buildings with more saleable area, increasing revenue. The cost of TDR is factored into the project cost and recovered through flat sales.
TDR is most extensively used in Mumbai but also applies in Pune, Bangalore, Chennai, and other cities with their own TDR policies. The specifics — types, receiving zones, and rates — vary by city and local planning regulations.
No. TDR-enabled construction is perfectly legal when approved by the planning authority. The additional floors are fully legal and eligible for OC. Verify that the RERA registration accurately reflects all approved FSI including TDR.
FSI (Floor Space Index) is the basic ratio of permissible built-up area to plot area set by the planning authority. TDR is additional FSI entitlement purchased and used on top of base FSI. Using TDR, a builder can construct more than the base FSI would normally allow.