What is DRC?
 

Development Rights Certificate (DRC) means making available certain amount of additional built up area in lieu of the area relinquished or surrendered by the owner of the land, so that he can use extra built up area for him or transfer it to another in need of the extra built up area for an agreed sum of money. Which can be transferred & these transferable rights are called Transfer of development rights (TDR).
TDR was introduced in Bangalore in the year 2005 - If your property is in the way of execution of a large infrastructure project, the executing agency / the government can acquire your property by compensating you with TDR.  What is actually issued to you is permission for a built-up area one and a half times the property you originally surrendered.

In Karnataka, planning takes place as per the guidelines laid down in the Town and Country Planning Act.  This is a State Government Act.  Any amendment to this act has to come from the State Government.

Karnataka State Government introduced section 14B in the Town and Country Planning Act in 2005 whereby if the Planning Authority or Local Authority wants to widen an existing road, form a new road, provide parks, playgrounds and open spaces or any other civic amenities, they can acquire land demarcated for these purposes from the owner for free and in exchange give the owner  “development rights in the form of additional floor area, equal to one and half times the area surrendered.” The owner can either use these development rights on the remaining part of surrendered land or anywhere in the local planning areas or he may transfer the development rights to another person.

Benefits of TDR

			Having the TDR system in place it smoothens the acquisition process & gives better compensation facility.
			The TDR concept leads to better city infrastructure at a faster pace.
			Property owners who might lose a part of their land or building are compensated by the provision to build one and a half times the surrendered area on their existing property.  The value  FSI/FAR of their property in turn stands to appreciate on account of the wider roads.
			As it provides more scope of affordable housing within city limits due to the excess of built-up area on account of TDR in city limits.
			Due to TDR concept public’s money can be used for better road development.
			TDR process is a faster compensation method.