Bengaluru, June 12, 2025 — In a major policy shift aimed at unlocking the potential of urban development, the Karnataka state government has relaxed restrictions on the usage of Transferable Development Rights (TDR) certificates in Bengaluru. This move is expected to significantly enhance the appeal and liquidity of TDRs in the city.
According to a notification issued on Tuesday, the revised guidelines will allow TDR certificates to be utilised anywhere within the limits of the Greater Bengaluru Area (GBA), regardless of Local Planning Area (LPA) boundaries. This marks the second such relaxation in the past year.
Boost for Stakeholders
The new policy is poised to benefit a wide range of stakeholders:
- Landowners: With the ability to sell TDRs beyond the locality where the land was originally surrendered, landowners now have a broader market, increasing their chances of finding buyers.
- Builders and Developers: A larger, more accessible pool of TDR certificates is expected to support vertical development, making high-rise construction more attractive and viable.
- Middlemen and Brokers: In the absence of a digitised and transparent TDR trading platform, intermediaries continue to play a dominant role by brokering deals between buyers and sellers. This change could further fuel their influence unless accompanied by regulatory oversight.
Expanding Urban Limits
Currently, the GBA covers approximately 709 sq km. However, with the state government’s ongoing efforts to restructure the Bruhat Bengaluru Mahanagara Palike (BBMP) and include more peripheral areas, the extent of TDR applicability is likely to grow in the near future.
The change is viewed as part of a broader urban planning initiative aimed at incentivising landowners who give up property for public infrastructure projects while also facilitating efficient urban expansion.
Urban planners, developers, and citizen groups are now looking to see if this policy will be followed by the creation of a transparent, digital TDR trading platform—something that could further streamline and democratise the system.
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