CHENNAI: Transferrable Development Rights was a new phenomenon that was aimed at helping people affected by projects to encash the value of their land acquired. However, it lacked mechanisms for TDR marketability, according to Institute of Town Planners, India.“Transferrable development rights (TDRs) will end in failure if there are no mechanisms to help the project-affected people to get the value of TDRs from financial institutions,” said ITPI sources.“These project-affected people are basically common people who don’t have any idea of whom to approach to sell their TDRs. In such cases, the whole concept will end in failure and the common man will suffer until a mechanism is evolved to create marketability of TDR as has been done in the United States,” the sources said.The State government should have forseen the marketability of TDR before implementing it. The marketability should be classified as mortgaging of TDRs or using it to take loans from financial institutions. Otherwise, banks should be involved in financial transactions with the owner of the TDR who could use it as a bond. “There should be a mechanism where the TDR owner should not seek a potential buyer but instead go to the bank and encash it,” said ITPI sources.Similarly, if a builder wanted to get a TDR certificate, he could approach the bank to get higher FSI privileges. ITPI sources said that TDRs failed in India because of conservative laws focusing only on road widening to help government in land acquisition.
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