HC Allows unlimited construction rights in the suburbs

In a major hearing, the Bombay high court upheld the state’s policy on Transfer of Development Rights (TDR), allowing builders’ unlimited construction rights in the suburbs, but at the same time added a tough rider to preempt the state from extending the 1995 cut-off for protection to slums.

The high court has also lifted a stay it had passed in July 2004 on the use of TDR in three prohibited corridors, which by ruling has once again allowed the builders to use TDR to construct on 365 lakh square metres of land between S V Road and the Western Express Highway in the western suburbs and between LBS Marg and the Eastern Express Highway in the east.

The ruling is believed to have a sobering effect and rationalize prices. However, the court has clarified that the state ‘shall not extend’ the cut-off date of January 1, 1995 for slums to be eligible for slum rehabilitation schemes. The order effectively means that the state cannot go on indefinitely regularizing post-1995 slums and allow free housing schemes by granting TDR.’’.

The Bombay high court also said that “The state, which has a constitutional duty to protect all citizens, cannot wear the mantle of Robin Hood by depriving tax-payers of their rights and by protecting and rewarding law-breakers”, emphasizing a “balancing of rights of honest tax-payers’’ and that of slum dwellers.

However, the court reiterated its observation and concern over the dearth of civic infrastructure in Mumbai.

What influences do you think this decision will have on Mumbai’s real estate?
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  • What is all about TDR policy?

    I found the news interesting but have struck on a point.

    Can anyone explain what TDR is except that it is an acronym that stands for “Transfer of Development Rights”?

  • TDR calls for revival in Infrastructure

    That's right. :)
    TDR stands for “Transfer of Development Rights”. These are a few facts on TDR which I would like to share with you all.

    TDR is the exchange of development rights from areas of low population needs, such as farmland, to areas catering to high population needs, such as downtown areas. These transfers play a major role allowing for the conservation of open spaces and historic landmarks, while contributing to the growth of urban areas as well.

    Of course, there is a link between slum TDR & 1995 Cut-Off Date, as mentioned in the TDR Policy; as TDR generated through slum rehab schemes can be used in 3 prohibited corridors. The scheme however, envisages free housing for slum dwellers who have come here before Jan 1, 1995.

    The HC has also at the same time called for improvement in the infrastructure, as it fears that rash of unplanned construction in the suburbs can put an immense strain on already inadequate infrastructure, compromising the quality of life.