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Recently, the State Government of Maharashtra has decided to extend the TDR for various urban conglomerates in all over the state, so that all development schemes can run smoothly even after imposing the land reservation bill. The Transfer of Development Right (TDR) is given by state government in return of land.

State Government of Maharashtra has imposed land reservation for the development of essential facilities such as; education, hospital, institutions, recreation centers and more. Now onwards after this decision, state government can acquire those reserved plots to lie give TDR to the owner of land. However; this TDR can be used for the construction of additional floors in a building and these additional floors can be sold in the market, so that land owners can get freedom from their dues. According to latest decision of state government, now government is free to acquire such reserved plots.

As per the statement of officials of Senior Urban Development Department, “In present, TDR is only available in Mumbai. State Government of Maharashtra has approved its extension of TDR for the urban conglomerate, as currently state government has no or very little funds because most of the available land are neither bought nor compensated and this is the main reason for delayed in several development projects. Allowing TDR will provide an opportunity for the development in upcoming urban localities”. According to Sunil Mantri, President of NAREDCO, an umbrella body of real estate developers; welcomed the decision of state government and government does not have money or resources to buy these reserved lands and due to that development of the region is stuck”. Now the main issue has been removed. Most of the Tier I and Tier II cities are witness for rapid development and urbanization. And due to that state government has changed the policies as per demand and new fabric.

In metro cities, lands are shrinking day by day and due to that TDR is great concept to get the vital land. Apart from that its win-win situation for land owners and state government because land owners will get the equal size of the virtual land and on the same time state government will use the actual land for further development without  spending a single penny.

Immovable properties can now be transferred to blood relatives without any stamp duty.

All the immovable properties such as; land, house or flat can now be transferred to blood relatives or children’s without any stamp duty on registration. It is expected that this will be the major relief for millions of families who are living in Maharashtra, as now onwards they don’t have to pay 5% of the ready reckoner rate of the property as stamp duty.

Revenue minister Eknath Khadse, make the announcement by saying that, an affidavit on a Rs 100 stamp paper would be sufficient. He later changed his statement by stating that now government no longer deals in Rs 100 stamp paper for property matters, so you need to pay Rs. 500. While in other decisions he announced in the House on Wednesday, that those who own 500sq ft or smaller homes than this, now they do not have to pay the increased property tax and now government will allow them to twice the transfer of development rights to a landowner in lieu of land surrendered for a public amenity.

For the reply on a discussion on the budgetary allocation for urban development department, Chief Minister Devendra Fadnavis stated that the government is framing a new policy, as TDR will be indexed to the ready reckoner rate to, it will prevent them to earn a windfall from the use of TDR of one area in another. The main aim of decision is to increase the TDR as it was taken as the new Land Acquisition Act has increased compensation, whereas; the RR rate of the area where it is being utilized will apply, the more he added.

Khadse state that the decision to waive stamp duty on immoveable property being passed to heirs will cost the exchequer Rs 350 crore annually, as a construction amenity TDR or incentive TDR will be offered to a land-owner in addition to the regular TDR if he develops an amenity and hands it over to the local body. For land and other property, the ready reckoner rate has gone up considerably even if the owner does not sell them at that rate in the market.

For this we have received a large number of complaints from every part. They have been demanding to know that why should they need to pay a huge amount to government while transferring a property to their own blood relatives or children’s. Hence, Government of Maharashtra has decided to do away with the stamp duty,” he said.