The Brihanmumbai Municipal Corporation (BMC) plans to launch an online trading platform for Development Rights Certificates (DRC), resembling a stock exchange. The platform will enable citizens to invest in Transferable Development Rights (TDR), with all DRCs dematerialised and maintained electronically. This initiative aims to streamline TDR transactions, allowing individual homeowners and societies to buy small DRC amounts for property modifications without brokers. Currently, TDR transfers are informal, often monopolised by brokers, leading to inflated pricing and potential legal disputes. By promoting transparency and fair pricing, this electronic marketplace will modernise Mumbai's real estate sector, benefiting property owners and developers alike.
The Brihanmumbai Municipal Corporation (BMC) is set to establish an online trading platform for Development Rights Certificates (DRC), designed to function similarly to a stock exchange. All DRCs will be dematerialised and maintained electronically. Once this marketplace is operational, citizens will have the opportunity to purchase Transferable Development Rights (TDR) as an investment.
The creation of this platform is anticipated to enhance transparency in the sale of TDR. Moreover, individual housing societies or flat owners will be able to acquire small amounts of DRC for regularisation or extension purposes without needing to rely on brokers. Special Planning Authorities or civic bodies, including the BMC, issue DRCs as compensation when they acquire land from owners for reservations or infrastructure projects. The DRC holder has the option to sell or transfer TDR, either fully or partially, to another party.
TDR enables developers to construct beyond the permitted Floor Space Index (FSI), subject to specific location restrictions. An order from the state government's Urban Development Department clarifies that DRC holders can sell or transfer TDR through the electronic platform, where registered buyers can express interest in acquiring these rights.
Currently, most TDR transfers occur in an unorganised manner, with the holder finding a buyer directly, leading to complications for those outside the real estate industry who possess TDR but struggle to locate buyers. Conversely, those in need of TDR face challenges in finding sellers and establishing a fair price. This situation has often led to brokers monopolising the market and the involvement of black money in transactions.
The new electronic marketplace is expected to address these challenges and facilitate fair market pricing for TDR. DRC holders and potential buyers will need to register, allowing them to engage in transactions without direct interaction.
The introduction of an electronic marketplace for DRCs represents a significant step towards modernising the real estate sector in Mumbai. By fostering transparency and accessibility, the BMC's initiative will empower individual property owners and enhance overall market efficiency, ultimately benefiting both buyers and sellers in the TDR landscape.
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