If you own land in Bengaluru that’s been earmarked for a road widening, park, or other civic project, you’ve probably come across the term TDR – Transfer of Development Rights. It’s one of the more misunderstood tools in Karnataka’s urban planning system, and it can materially affect what your land is worth.
TDR is implemented by the BBMP under Section 14 of the Karnataka Town and Country Planning (KTCP) Act, 1961, and the guidelines laid out in the Revised Master Plan. In simple terms: when the BBMP needs your land for a civic purpose – a road, a drain, a public amenity – instead of only paying monetary compensation, it can issue you a Development Rights Certificate (DRC).
That certificate entitles you to additional built-up area, which you can either use on land you own elsewhere in the city, or sell and transfer to another developer or landowner who needs additional built-up rights for their own project. In effect, TDR turns a compulsory land surrender into a tradable asset.
The scheme was reintroduced in 2022 after a period on hold, and the Karnataka government revised it again in 2024 to address complaints from landowners who felt earlier compensation was too low. Under the revised policy, agricultural land being surrendered can now be valued at par with converted residential land, provided the applicable development charges are paid. Land converted for non-agricultural, industrial, or commercial use is now compensated based on the official guidance value. The BBMP is also required to transfer collected fees and development charges to the revenue department within seven days – a change aimed at cutting down the delays that used to stall TDR processing.
For landowners facing a civic acquisition, TDR compensation is very often worth more – and moves faster – when it’s negotiated with a clear understanding of guidance values, applicable development charges, and where the resulting certificate can realistically be used or sold. For developers, TDR can also be a legitimate way to add built-up area to a project without buying additional land outright.
Either way, this isn’t a process most landowners should navigate alone. Our TDR Services team handles DRC valuation, documentation, and transfer on behalf of landowners across Bengaluru, and works alongside our Land Development practice for owners looking at their land’s broader development potential.
If you’ve received – or expect to receive – a TDR notice from the BBMP, talk to us before you sign anything. A second opinion on valuation costs nothing and can be worth a great deal.
Nalanda Group is a real estate service agency offering residential and commercial rentals, land development support, revenue documentation, liaison services, TDR services, and channel partner services.
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