TDR Policy Notified for FTL, MFL & Buffer Zone Lands; Building Rules Amended

In a major step towards protecting lakes, rivers, nalas, and other water bodies while addressing landowner concerns, the Telangana Government has amended the Building Rules, 2012 to introduce a structured framework for granting Transferable Development Rights (TDR) for lands affected by Full Tank Level (FTL), Maximum Flood Level (MFL), and buffer zones.

The amendment has been issued by the Metropolitan Area & Urban Development (MA&UD) Department, partially modifying G.O.Ms. No.168 dated 07.04.2012, and will come into force upon publication in the Extraordinary Issue of the Telangana Gazette.

The Government order refers to a series of judgments by the Hon’ble Supreme Court and various High Courts, which directed State Governments to protect water bodies, remove encroachments, and restore illegally filled lakes and nalas, holding that conservation of natural resources is a constitutional obligation. It also cites the National Green Tribunal (NGT) order dated 13.08.2021, which mandated demarcation of FTL and buffer zones of all water bodies and prohibited construction permissions in such areas, except for conservation purposes.

The Government noted that several representations were received from landowners whose patta lands fall within FTL, MFL, or buffer zones, where development permissions are not permissible. To balance environmental protection with equity to affected landowners, TDR has been identified as a compensatory mechanism in lieu of surrender of land.

Earlier, a uniform 200% TDR was granted for both FTL and buffer areas, despite the fact that no development is allowed in FTL/MFL areas, while limited recreational use is permitted in buffer zones. The Government has now rationalised the TDR structure and introduced differentiated incentives to encourage voluntary surrender of land for conservation.

Accordingly, a new Rule 17(f) has been inserted after Rule 17(e), titled “Grant of Transferable Development Rights (TDR) for lands affected by FTL/MFL/Buffer Zones of Water Bodies and Nalas and utilisation of TDR within Core Urban Region (CURE).” The rule applies to lands affected by FTL of lakes, MFL of rivers, buffer zones of lakes and rivers, and nala widening within the Core Urban Region (CURE), and will apply to applications received after the notification date.

Under the amended rules, FTL and MFL lands will be compensated with 200% TDR, while buffer zone lands will receive 300% TDR. Lands outside buffer zones but required for public purposes related to conservation or development of water bodies will be granted 400% TDR, on par with road widening. Similarly, in cases of nala widening in private lands, including nalas not reflected in revenue records, 400% TDR will be granted.

Landowners surrendering land free of cost may also opt for setback relaxations or additional floors, subject to prescribed building lines, minimum setbacks, and height norms. For high-rise buildings, a 7-metre all-round setback will be mandatory. Any additional built-up area shall not exceed eligible TDR and will be subject to Fire and Airport Authority clearances.

Where ownership disputes exist or landowners are not traceable, eligible TDR will be parked in a TDR Bank under the custody of the sanctioning authority and issued once disputes are resolved.

The TDR provisions will apply only to notified lake development and riverfront projects undertaken by public authorities such as HMDA, GHMC, HYDRA, MRDCL, UDAs, ULBs, IALAs, or other notified bodies. Prior clearances from Irrigation and Revenue authorities will be mandatory, and for land parcels exceeding one acre, prior Government approval will be required.

The Government stated that the amendment aims to strengthen market acceptance of TDR while ensuring long-term conservation of water bodies and planned urban development.