Friday, October 27, 2006

BMP struggles with compensation conundrums

BMP struggles with compensation conundrums
New Indian Express

BANGALORE: The much-hyped bill to regularise buildings that had overstepped the bylaws, will be in conflict with a favourite scheme of the BMP, the Transfer of Development Rights (TDR).

While the TDR seeks to save money for the civic body by offering higher floor area ratio (FAR), instead of cash, regularisation seeks to legitimise FAR violations for a fee. The BMP had hoped that building bylaw violators would purchase FAR credits.

TDR is a concept mooted by the Dharam Singh Government, as an alternative to cash compensation to owners of property that were acquired by the Government.

The owner has to demolish, fence and surrender the land as required by the Government. In return, the owner would be given a Development Rights Certificate (DRC), but no cash. DRC entitles the owner to a floor area ratio (FAR) of 150 per cent of the space surrendered. DRC is a tradeable instrument and can be bequeathed.

For trading purposes, the city is devided into three zones: A, B and C. A DRC originating from zone C cannot be sold in zone B and zone B DRC cannot be sold in zone A. But the converse is allowed. There are other conditions concerning the minimum width of road, which has to be 12 metres, and the building must have basement parking.


As violations of building bylaws became uncontrollable, the BMP thought to make some revenue by regularising the offence. Transfer of Development Rights (TDR) hoped to save on compensation money by offering DRC.

Once the violations are waived, who will buy DRC? Or, once DRC has regularised FAR violations, where is the scope for regularisation?

BMP sources said that a clear framework for regularisation, TDR and demolitions is yet to be formalised. And with Greater Bangalore underway, the task has just got bigger.


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