Change of land use from the outline development plan.

1. (1) At any time after the date on which the outline development plan for an area comes into operation, the Planning Authority may, with the previous approval of the State Government, allow such changes in the land use or development from the outline development plan as may be necessitated by topographical cartographical or other errors and omissions, or due to failure to fully indicate the details in the plan or changes arising out of the implementation of the proposals in outline development plan or the circumstances prevailing at any particular time, by the enforcement of the plan: Provided that,(a) all changes are in public interest; (b) the changes proposed do not contravene any of the provisions of this Act or any other law governing planning, development or use of land within the local planning area; and
   • (c) the proposal for all such changes are published in one or more daily newspapers, having circulation in the area, inviting objections from the public within a period of not less than fifteen days from the date of publication as may be specified by the Planning Authority.
2. (2) The provisions of sub-section (2) and (3) of section 14 shall apply mutatis mutandis to the change in land use or development from the outline development plan.]1 4[3[2[(3) Notwithstanding anything contained in this Act, whenever any land is procured by the Planning Authority, Local Authority, Karnataka Housing Board, Karnataka Slum Development Board, Karnataka Industrial Area Development Board, Karnataka Small Scale Industries Development Corporation or Rajiv Gandhi Rural Housing Corporation Limited for any public purpose, the land use of such land, excluding lands reserved under clauses (b), (c) and (f) of sub-section (1) of section 12 shall be deemed to be the land use for the purpose for which it has been procured. ]2]3
3. (4) The Planning Authority shall levy such fee as may be prescribed by the Government before allowing such change of land use from the Master Plan.]4 2. Sub-section (3) Inserted by Act 1 of 2005 w.e.f. 14.2.2005. 2[1[14B. Benefit of development rights.-(1) In a Local Planning Are if any Public Authority requires any 'Area' for the public purpose, it shall notify the same in such manner as may be prescribed and the owner of such 'Area' hands over possession of such 'Area' free from all encumbrances to such Public Authority in lieu of any compensation, under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (central Act 30 of 2013) or any other law, he shall, notwithstanding anything contained in this Act or regulations, be entitled to be granted Development Rights (DR) under this section subject to conditions specified below. The Planning Authority shall issue Development Rights 3[in the form of Notional land]3 to such persons not more than the extent specified in table below, subject to such terms and conditions as may be prescribed. 3[The site remaining after surrender shall have same floor area which was available before surrender for the original site or land as per regulation.]3 3[Provided that, any ‘Area’ surrendered in the above manner before 03.06.2004 shall not be eligible for Development Rights.]3
4. (2) The provisions of this section shall be applicable to the Local Planning Areas having City corporation and may be extended to other Local Planning areas as and when required by the State Government by notification from time to time. 4[(3) No Development Rights shall be granted under this section unless the Public Authority deposits the amount with Local Authority equal to one percent of the market value of the area required: Provided that, the State or Central Government Agencies for the development of affordable housing projects, slum redevelopment projects, Local Authority and Planning Authority are exempted from such deposition.]4 4[(4) whenever, the Public Authority intends to procure any ‘Area’ for any public purpose under sub-section (1), it shall follow the prescribed procedure to,-
   • (i) notify the details of the Area, seeking consent or objection from the owners of the Area or interested persons, to surrender the Area by availing Development Rights, instead of monetary compensation, within thirty days from the date of publication of the notification in the Official Gazette and in two daily newspapers;
   • (ii) get the consent of the owners to surrender the ‘Area’ by availing Development Rights;
   • (iii) issue Provisional Acceptance Order and take physical possession of the ‘Area’ agreed to be surrendered by the owner;
   • (iv) get the Relinquishment deed executed and registered in favour of the Public Authority; and
   • (v) recommend to the Planning Authority to issue Development Rights Certificate to the owners for the Area surrendered with a certificate that no development rights certificate or compensation had been issued in this regard by any Public Authority or Planning Authority: Provided that, in case the land owner or interested persons submit the claim to surrender the remaining portion of the land notified under clause (i) as the land is rendered unfit for the beneficial use of the land owner or interested persons, the Public Authority shall conduct the enquiry and pass suitable order to procure the remaining portion of the land and obtain the registered relinquishment deeds from the land owners.]4 4[(5) on receipt of the recommendation from the Public Authority, the Planning Authority shall, after verification that no Transferable Development Right has been issued before by that Planning Authority on the same parcel of land, within thirty days from the date of receipt of recommendations issue Development Right Certificate to the owner in the prescribed form, under intimation to the Public Authority specifying the extent of notional land as Development rights admissible subject to such terms and conditions as may be prescribed. Any liability with respect to the issue of Development right arising out of the action of the Public Authority under sub-section (4) shall be limited to the Public Authority and the Planning Authority shall not be held responsible for the same.]4
5. (6) If the owner does not agree to surrender his 'Area" required by a public Authority for any public purpose, for the Development Rights and demands for monetary compensation, then the public Authority may acquire such 'Area' by providing compensation as per the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (central Act 30 of 2013) or any other law prevailing.
6. (7) Any 'Area owned by Public Authority required for public purpose by a Local Authority shall also be eligible to obtain Development Right if such 'Area is surrendered to the Local Authority in lieu of any compensation under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (central Act 30 of 2013).
7. (8) The Authority competent to approve Building plan shall not approve utilization of the Development Right unless an entry to that effect is made in the Development Rights Certificate and in the register/database maintained by the Planning Authority as prescribed. 5[(9) XXX]5 Provided that no such application shall be rejected without giving opportunity of hearing to the public Authority and the owner of such land.
8. (10) The Development Rights shall be calculated based on the land area or building area surrendered by the owner to any Public Authority free from all encumbrances and without claiming any compensation. The Land or building area so surrendered shall be converted into 'Notional Land' to extent specified in the Table below based on the value of the land determined on the basis of Market value notified by the State Government under the Karnataka Stamp Act, 1957. 3[Provided that, in cases where land has been procured and possession has been taken by the Public Authority five years or more prior to the date of commencement of the Karnataka Town and Country Planning (Amendment) Act, 2021 for the purpose specified above but no Development Right Certificate has been issued till the commencement of the said amendment Act, in such procurement process land owners shall be eligible for benefit of Development Rights as per the said amendment Act.]3
9. (11) The Deposition amount or fee amount received by the Planning Authority under sub section (3) or sub section (27) shall be kept in a separate account called Transferable Development Rights Fund of the Planning Authority and shall be granted and utilized in the concerned Local Planning Area by the concerned Local Authority or Planning Authority in the prescribed manner.
10. (12) The Development Rights so issued shall be utilized within the same Local planning Area to which it is issued. 4[(13) The Development rights may be utilized within the same plot or in other area in the same Local Planning area or as notified by the Government, by the owner or the owner of such Development Rights may transfer the Development rights to a transferee as Transferable Development Rights which may be sold or utilized in any area as prescribed within the Local Planning Area or as notified by the Government.]4
11. (14) The utilisation of Development Rights at the receiving plot shall be subject to limitations, as may be prescribed.
12. (15) Whenever the owner sells the Development Rights, it shall be registered in the Planning Authority after due entry in the register/database and on the Development Rights Certificate.
13. (16) No transfer or utilization of the Development Right shall be valid unless it is registered by the Planning Authority.
14. (17) The Planning Authority shall maintain a register/database and shall make entry of issue, transfer or utilization of Development Rights granted under this section in such manner as may be prescribed.
15. (18) Issue, transfer or utilization of the Development Rights may be done through electronic form and through internet in such manner as may be prescribed.
16. (19) The State Government shall establish a State level Development rights monitoring authority consisting of such number of members as may be prescribed to keep track of all transactions of Development Rights. It shall also have power to inspect, verify the records of concerned planning Authority 3[and Public Authority]3 pertaining to these transactions. It shall also have power to prosecute persons responsible for illegal or fraudulent transactions in contravention of the provisions of this section 3[and for stocking, banking and trading of Development Rights or Transferrable Development Rights in the State.]3
17. (20) No person shall be eligible for the Development Rights for the surrender of the areas earmarked for road, parks or common open spaces and Civic Amenity sites to the Planning Authority or Local Authority while obtaining permission for formation of layouts or development any land under section 15 or 17.
18. (21) The Planning Authority shall periodically publish total number of Development Rights issued, transferred and the balance remaining in each Local Planning Area and the name of the holder in such manner as may be prescribed.
19. (22) Any person aggrieved by any 4[decision of the Public Authority or Planning Authority]4 may appeal to such Appellate Authority, in such manner, as may be prescribed. The appellate Authority may dispose the application with such direction as it deems fit. The decision of the appellate Authority shall be final.
20. (23) Any person who fraudulently create any Development Rights Certificate or fraudulently transfers Development Rights shall on conviction be liable for an imprisonment for not less than one year which may be extended to three years and to a fine which may extend to double the value of amount cheated by him.
21. (24) The member secretary of the Planning Authority 3[or the Chief Executive Officer of the Public Authority, as the case may be]3, shall be responsible to file complaint before the Court regarding the offences committed under this section.
22. (25) In case of any dispute arising over the ownership of the 'Area' surrendered, where the Development Rights Certificate issued for such 'Area' is already transferred and utilized by any person other than the person who has surrendered the 'Area', such claims shall be restricted only to the extent of eligibility of compensation from the person who has surrendered the 'Area' for Development Right. The Public Authority which verified the claims shall also be responsible for the wrong recommendation for issue of Development Right. It shall make good the loss occurred by it.
23. (26) All Development Rights issued before the commencement of the Karnataka Town and Country Planning (Amendment) Act, 2015 shall also be entered in the register/database maintained under this section in the same manner specified herein.
24. (27) Necessary fees as prescribed shall be collected by the Planning Authority for registering any transaction of issue, transfer or utilization of Development Rights Certificate.
25. (28) Every Transaction pertaining to issue, utilization or transfer of Development Rights and the Transferable Development Rights Fund of the Planning Authority created under sub-section (11) shall be audited every year by such officer as may be prescribed. The audit report alongwith compliance shall be sent to the Government by the concerned planning authority and the Government shall place the same before both the houses of the State legislature. 4[Table [see sub-section (1)] QUANTUM OF DEVELOPMENT RIGHTS PERMITTED

¹ Inserted by Act 17 of 1991 w.e.f. 19.04.1991.

³ Omitted by Act 38 of 2015 w.e.f 10.09.2015.

⁴ Inserted by Act 46 of 2020 w.e.f. 20.10.2020

1. (i) Any road widening/any road; formation as proposed in Master Plan or as proposed by the Local Authority or Developing Authority.; (ii) Any Infrastructure Projects approved by the Government (Transportation, Water Supply, Sewage, Electricity, etc.,).; (iii) Providing for parking, Parks, playgrounds, and open spaces, or any other public places proposed in the Master Plan or proposed by Local Authority and redevelopment projects on private land; (iv) Providing EWS/LIG/ affordable housing/Slum redevelopment project on private land; (v) Any other public purpose notified by the Government from time to time. DR in the form of notional land which shall be equal to two times of the Area surrendered.

]4

Note.- The Development Rights in the form of 'Notional Land' shall be multiplied by the permissible Floor Area Ratio of the plot where Development Rights or transferable Development Rights is proposed to be utilized, to derive the additional Floor Area eligible for that plot due to utilization of Development Rights or Transferable Development Rights.

Explanation.- for the purpose of this section,-

1. (a) "Area" means land/plot or land and building/portion of building thereon.
2. (b) "Deposition Amount" means the amount to be remitted by any Public Authority intending to acquire the area falling within the jurisdiction of the Local Planning Area. 5[XXX]5
3. (c) "Development Rights (DR)" means the right given for development of land within the Local Planning Area in the form of "Notional Land" to an owner who surrenders the area of land or building required for public purpose without claiming any compensation.
4. (d) "Development Right Certificate (DRC)" means the certificate of Development Rights issued to owner;
5. (e) "EWS/LIG" means such class of person as may be notified by the State Government from time to time;
6. (f) "Floor Area" means the floor area defined in the respective Zonal Regulations;
7. (g) "Market value" means the value determined as per the guidance value of land in accordance with a section 45B of the Karnataka Stamp Act, 1957;
8. (h) "Notional Land" means the Development Rights in the form of theoretical land area and not in the form of real/physical land area, in lieu of compensation;
   • (i) "Public Authority" means the Planning Authority, Local Authority or an authority or a body owned and controlled by the State Government, Central Government or by both State and Central Government jointly having Authority by laws to acquire, hold and dispose of property together;
9. (j) "Public purpose", means and includes for the purposes of,-
   • (i) Any road widening/any road formation as proposed in Master Plan or as proposed by the Local Authority;
   • (ii) Any Infrastructure projects approved by the Government (Transportation, Water Supply, Sewage, Electricity, etc.,..)
   • (iii) Providing for parking, parks, playgrounds and open spaces or any other public places proposed in the master plan or proposed by Local Authority except cases under Section 15 and 17;
   • (iv) Providing EWS/LIG/affordable housing; and
   • (v) Any other public purpose notified by the Government from time to time." 4[(k) “Transferable Development Rights” (TDR) means the Development Right in the form of notional land transferred by the owner to a transferee, which may be sold or disposed or utilized elsewhere in the Local Planning Area or any other area notified by the Government. The DR of the ‘Area’ surrendered in the form of Notional land, shall be permitted to be utilized as TDR, only after factorizing the market value of the originating plot and the receiving plot, as specified in the terms and conditions; and]1]2]4 3[(l) “Transferred Development Rights Certificate’” (TDRC) means the certificate of Development Rights transferred by the DRC holder as TDR. TDRC shall also be issued for the TDR transferred by any subsequent TDRC holder.]3 1. Section 14B Inserted by Act 23 of 2004 w.e.f 3.6.2004. 3. Deemed to have been Subsituted by Act 31 of 2021 w.e.f. 12.08.2021. 4. Deemed to have been Inserted by Act 31 of 2021 w.e.f. 12.08.2021. 5. Deemed to have been Omitted by Act 31 of 2021 w.e.f. 12.08.2021.

² Substituted by Act 38 of 2015 w.e.f 10.09.2015.