Mumbai's TDR Policy: A Closer Look at Real Estate Speculation and Urban Inequality
The Transfer of Development Rights (TDR) policy in Mumbai, introduced to achieve public goods and a city without slums, has instead facilitated real estate speculation and income-segregated urban development.
MumbaiTdr PolicyReal EstateUrban InequalitySlum RedevelopmentReal EstateSep 13, 2025
Mumbai, one of the most populous cities in India, has long grappled with issues of urban inequality and real estate speculation. The TDR policy was designed to address these issues by allowing property owners in certain areas to transfer their development rights to other areas where development is more desirable. The idea was to create a balanced urban landscape, where slums could be relocated and redeveloped, and public goods could be enhanced.
However, the reality has been quite different. The TDR policy has become a regime of perverse incentives that has made urban inequality functional for real estate speculation. Instead of promoting equitable development, it has facilitated the concentration of wealth and resources in the hands of a few. The policy has allowed developers to capitalize on the uneven geography of the city, leading to the creation of income-segregated neighborhoods.
One of the key aspects of the TDR policy is the generation of slum TDRs. Slum TDRs are development rights that are generated from the redevelopment of slum areas. These rights can then be sold to developers who wish to build in other parts of the city. The paper reviews three major projects that have produced a significant slum TDR footprint. These projects have not only displaced slum dwellers but have also contributed to the concentration of real estate development in certain areas, further exacerbating urban inequality.
The TDR policy has also raised several semantic and legal questions. The concept of development rights and the transfer of these rights are complex and often misunderstood. The legal framework surrounding TDRs is also fraught with ambiguities, which have been exploited by developers and speculators. This has led to a situation where the policy, instead of achieving its intended goals, has become a tool for real estate speculation.
The authors of the paper thank late Shirish B Patel, Rajani Desai, Girish Srinivasan, Yusuf Indorewala, and an anonymous referee for their valuable comments and suggestions. Their insights have helped to clarify some of the key issues surrounding the TDR policy in Mumbai.
In conclusion, the TDR policy in Mumbai has not achieved its intended goals of creating public goods and a city without slums. Instead, it has facilitated real estate speculation and income-segregated urban development. The policy needs to be re-evaluated and reformed to ensure that it serves the interests of all residents of the city, not just a privileged few.
Frequently Asked Questions
What is the Transfer of Development Rights (TDR) policy in Mumbai?
The TDR policy in Mumbai allows property owners in certain areas to transfer their development rights to other areas where development is more desirable. It was introduced to achieve public goods and a city without slums.
How has the TDR policy affected urban inequality in Mumbai?
The TDR policy has facilitated real estate speculation and income-segregated urban development, making urban inequality functional for real estate speculation.
What are slum TDRs?
Slum TDRs are development rights generated from the redevelopment of slum areas. These rights can be sold to developers who wish to build in other parts of the city.
What legal and semantic issues are associated with the TDR policy?
The legal framework surrounding TDRs is complex and fraught with ambiguities, which have been exploited by developers and speculators. The concept of development rights is also often misunderstood.
What are the key findings of the paper on the TDR policy in Mumbai?
The paper reviews the records of TDR generation and three major projects that have produced a significant slum TDR footprint. It concludes that the TDR policy has not achieved its intended goals and needs to be re-evaluated and reformed.
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