High-rise towers in Mumbai. Illustrative photograph, not a project that uses TDR.
When a developer or a redeveloping society says a project uses “TDR”, it means part of the floor area comes from development rights bought or earned somewhere else, not from the plot itself. The idea is simple, but the rules around it are detailed: where TDR comes from, how much a landowner earns, where it can be used, how much of it a plot can take and how a certificate changes hands. This guide explains the TDR provisions of the Maharashtra Unified Development Control and Promotion Regulations (UDCPR) in plain language. It does not say how much TDR any project may use or what it costs, and it is general information, not planning or legal advice.
Quick answer: in the UDCPR text updated to 30 January 2025, transferable development rights are compensation in the form of FSI, issued by the planning authority as a Development Right Certificate (DRC). A landowner earns TDR mainly by surrendering land that is reserved or needed for roads and public purposes, at 2 times the surrendered area in a non-congested area and 3 times in a congested area. TDR generated within one authority’s jurisdiction has to be used within the same jurisdiction. A receiving plot can take TDR only up to its road width limit, and the authority endorses the DRC when permission is granted and again before the occupation certificate.
Which rules apply to a plot
The UDCPR applies to most planning authorities in Maharashtra, with listed exceptions. Our UDCPR guide explains where it applies and maps its chapters to our guides. It has sections for the NMMC area and for CIDCO areas, and the Panvel Municipal Corporation area is covered by its provisions for municipal corporations. The cover page says it does not apply to MIDC, NAINA and the Jawaharlal Nehru Port Trust, among others. NAINA is a notified area for which CIDCO acts as Special Planning Authority, and CIDCO publishes the sanctioned NAINA development control and promotion regulations separately. Our NAINA guide explains where that area lies. How FSI or TDR can be taken in place of cash compensation in a NAINA town planning scheme is explained in our NAINA town planning scheme guide.
Confirm the plot’s current planning authority from its official records, and ask which version of the regulations is in force. The TDR provisions were amended several times in 2021 and 2024, and local and scheme specific provisions can differ.
What TDR and a DRC are
- TDR is compensation in the form of FSI or development rights. It entitles the holder to construct built-up area, within the limits of the regulation. Our FSI limits guide explains FSI.
- The FSI credit is issued as a Development Right Certificate (DRC), signed by the planning authority. The DRC states in figures and words the FSI credit in square metres, the place it was generated and the rate of that plot in the Annual Statement of Rates for the year.
- The DRC is a transferable and negotiable instrument after the authority authenticates it. The authority keeps a register of every grant, transfer and use.
- TDR generated within the jurisdiction of one authority is used within the jurisdiction of the same authority.
Where TDR comes from
Regulation 11.2 lists the cases that are eligible for TDR:
- Land under reservations for public purposes, new roads and road widening, in a draft or final development plan, that is subject to acquisition.
- Land under deemed reservations under any regulations made under the Maharashtra Regional and Town Planning Act.
- Land under a new road or road widening proposed under the municipal corporation, municipal council or nagar panchayat laws.
- A layout submitted along with a proposed Development Plan road, where TDR is permissible for the entire road width.
- Development or construction of an amenity on reserved or deemed reserved land.
- Unused FSI of a heritage structure or precinct that is restricted by the heritage provisions.
- Constructing housing for slum dwellers under the regulations.
- Handing over land to the authority for housing under PMAY.
- Other purposes the government notifies.
TDR is not granted where compensation has already been paid or granted in any form, where an award under land acquisition law is still valid, where the layout was sanctioned and roads were incorporated as Development Plan roads before the regulations, where lawful possession was taken under an agreement that does not provide for TDR, for existing or retention uses and required open space, for land that is not subject to acquisition, for existing nallahs, rivers, ponds and water bodies, for reservations that cannot be developed under the UDCPR, and for State Government land, except government land leased long term at a nominal rent with more than 30 years of lease remaining.
How much TDR a landowner earns
For surrendering land that is subject to acquisition, free of cost and free of all encumbrances, the owner is entitled to TDR whatever the FSI of that land or of the land around it:
| Area designated in the development plan | TDR entitlement |
|---|---|
| Non congested area | 2 times the area of the surrendered land |
| Congested area | 3 times the area of the surrendered land |
- For a reservation with total legal impediment or constraint on development, such as CRZ, a hazardous zone or a low density zone, the TDR is 50 per cent of the figures above. For a biodiversity park reservation it is 8 per cent of the gross area.
- If levelling and a compound wall or fencing are not desirable given the size of the reservation, the TDR is reduced to 1 to 1.85 in a non congested area and 1 to 2.85 in a congested area. The owner can instead pay the cost of the compound wall, as the authority decides, without the reduction. No wall or fencing is needed for Development Plan roads.
- A 5 per cent additional incentive was allowed for proposals made within 2 years of the sanction of the regulations. Check whether it still applies.
- The multipliers do not apply to TDR generated from construction of an amenity, reservations built by the owner, deemed reservations, roads, slum TDR or heritage TDR.
When the DRC is issued. The authority issues the DRC only after the land is surrendered free of cost and encumbrances, levelled to the surrounding ground level and enclosed with a 1.5 m high compound wall or fencing with a gate, at the owner’s cost. It has to issue the DRC within 90 days of the application or of the applicant’s reply to a requisition, whichever is later. A lessee has to pay the lessor the value of the lessor’s interest. For land of tenure other than Class I, such as inam or tribal land, an NOC from the competent authority is needed with the application.
Construction TDR for an amenity. An owner who, with the authority’s prior approval, builds an amenity on the surrendered plot at their own cost and hands it over free can earn construction TDR. The regulation gives the area as the cost of construction, worked out from the Public Works Department schedule of rates for the year, divided by the land rate in the Annual Statement of Rates, and multiplied by 1.35. Technical sanction from the competent authority is compulsory, and the cost of movable items is left out. A person who builds a new Development Plan road with the other owners’ consent can also earn it, if the road meets an existing public road at one end.
Using TDR on a plot
- The holder attaches valid DRCs to the application for development permission. The authority endorses on the DRC, in figures and words, the quantum proposed to be used before granting permission, and before issuing the occupation certificate it endorses the quantum actually used and the balance.
- TDR generated in any land use zone can be used on any receiving plot, whatever its zone, including buildable development plan reservations, in a congested or non congested area. The quantum allowed on the receiving plot depends on the land rates: X = (Rg divided by Rr) times Y, where Rg is the Annual Statement of Rates land rate of the generating plot in the generating year, Rr is that of the receiving plot in the generating year, and Y is the TDR debited from the DRC. Our ready reckoner guide explains the ready reckoner.
- The total built-up area and TDR a receiving plot can take is limited by the FSI tables for its road width, as our FSI limits guide explains. TDR used under Table 6-G has to include at least 30 per cent and at most 50 per cent of slum TDR, urban renewal TDR or amenity TDR, where applicable and available. That requirement does not apply to the TDR loading in the congested area Table 6-A.
- A DRC can be used on one or more plots, vacant or already developed, including by adding storeys, and on plots with buildable reservations or deemed reservations, on amenity space, or on the owner’s remaining land after surrendering land under the accommodation reservation provisions.
Illustrative arithmetic only. Suppose the generating plot’s land rate was Rs 60,000 per sq.m. and the receiving plot’s was Rs 90,000 per sq.m., and 300 sq.m. of TDR is debited from the DRC. Then X = 60,000 divided by 90,000, times 300, which is 200 sq.m. of TDR utilisation on the receiving plot. These are not real rates, and the authority’s calculation decides the figure.
TDR cannot be used in agricultural, no development, green zone, green belt, regional park and hill top and hill slope zones, or on a biodiversity park reservation, within the flood control blue line, in the coastal regulation zone, or in areas with development prohibitions or restrictions under central or state laws or the UDCPR, such as defence restriction areas. Our land use zones guide explains zones, and the building height limits guide and setbacks and margins guide explain the height and margin limits that TDR cannot override.
Transferring a DRC
- A holder who wants to transfer a DRC submits the original DRC to the authority with an application, the prescribed documents and a registered agreement signed by the transferor and the transferee.
- The authority endorses the new holder’s name on the DRC. A transfer is not valid without that endorsement, and until then the DRC is available for use only to the transferor. TDR cannot be used from a certificate while a transfer is in progress.
- On the death of a holder, the DRC is transferred on production of the documents the authority prescribes, after it verifies title and the legal successor.
- The authority may stop a holder from using a DRC under a court direction, or where it believes the DRC was obtained with fraudulent documents or by misrepresentation.
What this means for buyers and redevelopment societies
- In a redevelopment, TDR is one of the components of the FSI a developer proposes, alongside basic and premium FSI. Our society redevelopment guide covers the process, and the proposal’s sanctioned area statement should show how much comes from TDR.
- Ask the developer or architect for the DRC details: the DRC numbers, the quantum, the place of generation and the endorsements of the authority. The authority’s endorsement is the record of what has been used.
- Check that the TDR used is within the limit for the road width and within the 30 to 50 per cent source category requirement where it applies.
- The cost of buying TDR is a commercial matter between holder and buyer. The regulations do not fix a price, so do not treat any quoted rate as official.
- A brochure that quotes a large FSI does not show how much is TDR, or whether the height, margins and parking can accommodate it. The occupancy certificate guide explains what the completion paperwork confirms, and the flat buying checklist lists the documents a buyer should read.
Frequently Asked Questions
What is TDR in simple terms?
Transferable development rights are compensation in the form of FSI for land surrendered for roads and public purposes, or for building certain amenities. The FSI is issued as a Development Right Certificate, and it can be used on another plot to build extra floor area.
How much TDR does a landowner get for surrendering land?
Under the UDCPR text updated to 30 January 2025, 2 times the area of the surrendered land in a non congested area and 3 times in a congested area, reduced in specified cases such as total legal impediment, where it is 50 per cent, or where levelling and fencing are not done.
Can TDR from one corporation be used in another?
No. TDR generated within the jurisdiction of a particular authority has to be used within the jurisdiction of the same authority.
Is there a limit on how much TDR a plot can use?
Yes. The FSI tables for the plot’s road width set the maximum TDR loading and the maximum building potential. Under Table 6-G, the TDR used has to include at least 30 per cent and at most 50 per cent of slum, urban renewal or amenity TDR where applicable and available.
How is a DRC transferred to another person?
The holder submits the original DRC with an application and a registered agreement signed by both parties, and the authority endorses the new holder’s name. The transfer is not valid without that endorsement.
Where can TDR not be used?
In agricultural, no development, green zone, green belt, regional park and hill top and hill slope zones, on a biodiversity park reservation, in the flood control blue line area, in the coastal regulation zone and in areas with development prohibitions or restrictions.
What to read next
- FSI limits in Navi Mumbai: how much floor area a plot can carry.
- Society redevelopment in Navi Mumbai: the process and the checks for flat owners.
- UDCPR in Navi Mumbai: where the rules apply and which chapter answers which question.
Sources and a note on accuracy
Sources reviewed on 15 October 2026. TDR rules: regulation 11.2 of the Unified Development Control and Promotion Regulations for Maharashtra State, updated to 30 January 2025, as published on the Panvel Municipal Corporation website, with the notes to Table 6-G in regulation 6.3. The regulatory compilation used is updated to 30 January 2025, and later amendments have not been checked. The printed page numbers below are those of that compilation.
| Topic | Printed pages |
|---|---|
| Definition, DRC and eligible and ineligible cases, regulation 11.2 | 219 to 220 |
| Generation of TDR against surrender of land | 220 to 221 |
| Construction TDR for an amenity | 221 to 222 |
| Utilisation, road width relation and restricted areas | 223 |
| General stipulations, DRC issue and transfer | 224 to 225 |
| TDR limits in the FSI tables, regulation 6.3 | 116 to 118 |
The regulation has been amended by corrigenda and notifications between December 2021 and October 2024, older copies may show different provisions, and the compilation may not include later amendments or scheme specific provisions. This guide summarises the main provisions and leaves out several of the finer conditions, the slum and heritage TDR schemes and the transfer procedure forms. The figures here are not a computation of TDR for any plot, so confirm them with the planning authority. Featured photo: A skyscraper in Mumbai from railway station by Nicolas Vigier, released under CC0 via Wikimedia Commons, cropped and resized. NaviMumbai.com is an independent information site and is not affiliated with NMMC, Panvel Municipal Corporation, CIDCO or any other authority named here.
