G.O.Ms.No.140, Amendment to Transfer of Development Rights Regulation, 2009

What the government changed

Government Order G.O.Ms.No.140, dated 06.08.2009, issued by the Housing and Urban Development (UD I) Department, adds a provision to the regulations for granting Transfer of Development Rights under the Second Master Plan for Chennai Metropolitan Area, 2026.

The added provision states:

• Where surrendered land qualifies for a floor space index of 2.00 or more, the additional floor space index allowed through Transfer of Development Rights is 0.25.
• The provision is added to the Transfer of Development Rights regulations contained in Annexure XXI of the Development Regulations for Chennai Metropolitan Area, 2026.
• The government also approved the corresponding variation to the Second Master Plan for Chennai Metropolitan Area, 2026.

Why the provision was added

The Housing and Urban Development (UD I) Department considered concerns about the existing calculation of floor space index credit for surrendered land. The existing formula referred to surrendered land area, an assumed floor space index of 1.5, relevant guideline values and an incentive based on one-and-a-half times the guideline value.

The Special Initiatives Department reported that the formula was less useful for land with a higher eligible floor space index. The comparison placed before the government showed that Transfer of Development Rights allowed a floor space index of 2.25. This produced no gain where the eligible floor space index was 2.25 and a loss of 0.25 where it was 2.5.

The Chennai Metropolitan Development Authority also reported that allowable floor space index depends on the type of development proposed and is not specific to the site alone.

Who may be affected

Government Order G.O.Ms.No.140 may affect owners surrendering land and seeking Transfer of Development Rights within the Chennai Metropolitan Area, particularly where the surrendered land qualifies for a floor space index of 2.00 or more.

Property owners and professionals assessing such land should note:

• The relevant threshold is an eligible floor space index of 2.00 or more.
• The additional floor space index under Transfer of Development Rights is fixed at 0.25 for land meeting that threshold.
• The notification varies the Development Regulations forming part of the Second Master Plan for Chennai Metropolitan Area, 2026.
• The Chennai Metropolitan Development Authority was directed to take further action, and the notification was directed to be published in the Tamil Nadu Government Gazette.