Also called: TDR, Development rights certificate, DRC
TDR: a right to build extra floor area, given to a landowner who surrenders land to the city (for a road or park, say), which can be used on another plot or sold.
How it works and what to check
Cities such as Mumbai, Pune, Bengaluru and Hyderabad issue TDR as compensation in kind, recorded in a certificate. A developer buys TDR to build beyond the base FSI on a receiving plot, within the limits the local rules set.
The rules on where TDR can be used, how much, and how it is valued differ by city and change over time. TDR prices are set in a market between holders and developers.
Common questions
Who can use TDR?
Anyone building on a plot where the local rules allow TDR to be loaded, usually developers. The holder can sell it.
Is TDR the same as premium FSI?
No. Premium FSI is bought from the authority; TDR is a right transferred from a landowner who surrendered land.