In certain circumstances, the development potential of a plot of land may be separated from the land itself and may be made available to the owner of the land in the form of transferable development rights (TDR). These Rights may be made available and be subject to the Regulations mentioned below.

The Owner (or lessee) of a plot of land which is reserved for a public purpose in the development plan excepting in the case of an existing or retention user or any required compulsory or recreational open space, shall be eligible for the award of Transferable Development Rights (TDRs) in the form of Floor Space Index (FSI) to the extent and on the conditions set out below. Such award will entitle the owner of the land to FSI in the form of a Development Rights Certificate (DRC) which he may use himself or transfer to any other person.

However in case of lessee who shall pay the lessor or deposit with the Planning Authority/Development Authority or Appropriate as the case may be, for the payment to the lessor, an amount equivalent to the value of the lessors interest to be determined by any of the said authorities considered on the basis of Land Acquisition Act, 1894, FSI or TDR against the area of land surrendered free of cost and free from all encumbrances will be available to the lessee.

Subject to the Regulation 29.1 above, where a plot or land is reserved for any purpose specified in section 22 of Maharashtra Regional & Town Planning Act, 1966, the owner will be eligible for Development Rights (DRS) to the extent stipulated in these Regulations after the said land is surrendered free of cost and after completion of the Development or construction as per these Regulation if he undertakes the same.