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LEGAL CHAT

The land shall be surrendered through a relinquishment deed for which a Development Rights Certificate (DRC) is to be issued. The land so surrendered shall vest with the authority/local body free from all encumbrances.

The DRC shall be issued only after the land is surrendered free of cost and free of encumbrances. In respect of land surrendered for purpose other than road widening, the land has to be fenced to the satisfaction of the authority/local body. DRC shall be issued under the seal of the planning authority/local body and under the signature of the Commissioner, Bangalore Development Authority/Commissioner of local body within the Local Planning Authority of Bangalore.

The DRC shall be valid for a period of five years. However, the same may be revalidated for a further period of five years subject to payment of a revalidation fee.

The DRC shall contain details of the floor area credit in square meter of built-up area and the area to which the owner of the surrendered land is entitled shall be stated in figures and words. The description of the land from where development rights are generated and the land use zone of the same shall also be stated. The eligible additional floor area may be utilised in the remaining portion of the land after surrender, irrespective of the road width.

The DRC shall not be valid for use on receivable plot/plots abutting a road of less than nine metres within the LPA of Bangalore subject to condition no.12 below.

In case of Bangalore LPA, if the additional floor area is transferred to another plot, FAR of the receiving plot shall be allowed to be exceeded by not more than 0.60 times of the existing FAR, provided the receiving plot abuts a road width of 12 metres and above. If the receiving plot abuts a road width of nine metres, then a maximum of 0.40 times the existing FAR shall only be allowed, subject to limitations prescribed in these terms and conditions.

The Authority may consider relaxing setbacks and coverage to a maximum extent of 50 per cent, when the permissible Floor Area Ratio cannot be achieved, in case of DRC arising out of land surrendered free of cost for road widening. This relaxation is also permissible in the receiving plot or in the same plot left over after surrender.

No relaxation can be given for area required for parking in a receiving plot. While exercising the above power, the Authority shall finalise the building line for the entire road taken up for widening keeping in view the developments and smooth flow of traffic and notify the same. No construction shall be allowed in violation of such notified building line.

A DRC can be purchased for utilisation in respect of a building already existing, subject to all the limitations prescribed in these terms and conditions.

Development Rights Certificate may be utilised in all the areas irrespective of A, B and C (Ring I, II and III) zones, in the manner stated in the table. E.g., Area of site surrendered is 100 sq.m

DRC issued is 150 sq.m

The DRC obtained on account of surrendering a particular land/plot shall be utilised on transfer to any other plot only for the purpose for which such receiving plot is designated in the development plan.

Whenever the remaining portion of the plot or land after surrender to the planning authority/local body is too small to construct any meaningful building, the owner may desire to surrender the entire property to the planning authority/local body in lieu of the DRC.

The authority may charge a fee of Rs. 100 for grant/transfer/utilisation/revaluation etc., of DRC.

A DRC shall not be valid for use on receivable plot in the area notified as such by the Government.

The utilisation of Development Rights shall be in multiplies of 10 sq. m only except the last remainder.

The authority may reject or cancel the grant of DRC in the following circumstances:

Where any dues are payable by the owner of the property to the State Government or planning authority/local body prior to the date of handing over physical possession of the property to the authority.

Also, the planning authority/local body may grant and withhold issue of DRC until all the dues are paid by the owner.

Where DRC is obtained by fraudulent means.

Where there is a dispute on the title of the land, till the dispute is settled by a competent court. The utilisation of DRC in favour of Non-Resident of India and foreign nationals will be subject to rules and regulations under the Foreign Exchange Management Act, 1999 (FEMA), and/or the rules and regulations made by the Reserve Bank of India/Government of India in this behalf.

The Authority may decline to allow utilisation of DRC in the following situations:

Under direction from a competent court.

Where the authority has reason to believe that the transfer for utilisation of DRC has been obtained by fraudulent means.

Where the utilisation application does not comply with the terms and conditions.

Where the application is not duly signed by the transferor and transferee.

Where the application is not duly accompanied by the original DRC.

In case of death of holders of DRC, it will be transferred only on production of “Will/Survivors Certificate/Inheritance Certificate/ Heirship Certificate/Succession Certificate and/or probate of a will wherever applicable. On production of the documents, names of the legal heirs shall be included in the DRC.

Where the DRC holder is a minor, no permission for transfer for utilisation shall be considered unless the application is made by the guardian appointed by the Court.

If a holder of DRC intends to transfer it to any other person, he will submit the DRC to the planning authority/local body with an application for endorsement of the new holder’s name, i.e., the transferee, on the said certificate. Without such endorsement by the planning authority/local body, the transfer shall not be valid and the Certificate will be available for use only by the earlier original holder.

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