Now, transparency in TDR deals in a click

THANE: To bring some transparency into the city's Transfer of Development Rights (TDR) market, the Thane Municipal Corporation (TMC) has decided to do an indexing of the instrument. This means that fluctuation in the cost of TDR will now be linked to availability and movement in a particular sector, and trading, if any, will be carried out on a common platform promoted by the civic body.
A proposal to make TDR indexing formal will be tabled in the coming general body (GB) meeting, said officials involved in preparing the concept. Once approved, the TMC's town planning department will put up the list of sector-wise rates of TDR based on market indicators, and allow people to enroll for any sale and purchase. This will be done on TMC's web portal.
Those intending to purchase will be able to enlist, and offer intent of sale for the potential TDR expected on their plots. The buyer will be able to take reference of TMC's TDR rate chart and bid for it online. Once the transaction is complete, even the Development Rights Certificate (DRC) indicating the generation and use of floor space index (FSI) will be issued on the website.
"This virtual market will ensure not only transparency in sale, purchase of TDR but also its use. It will also ensure that there is little speculation in TDR rates, which are currently heavily driven by demand and supply," said a senior official of the TMC town planning department.
This is one of the many steps TMC is taking to streamline the TDR market in Thane. It has already passed a proposal to make it mandatory for auctioning of TDR generated on a plot which had multiple owners. The TMC has also decided to charge a premium on the sale of DRCs.
The TMC so far had little mechanism to check how the DRCs were being traded in the market or being unloaded by the developers. The lack of checks and balances meant a burgeoning gap between construction cost and TDR rates in the market. The trading of kuccha TDR (DRCs traded in market in anticipation of TDR likely to be generated on a plot) became rampant as a result allowing developers to raise additional floors without procuring the final TDR rights.