Bombay High Court greenlights Panvel's interim TDR policy for developers
The Bombay High Court has approved a temporary policy allowing developers in Panvel to use a significant portion of Transferable Development Rights (TDR) by paying a premium. The decision comes after challenges were raised against the Maharashtra government's approach to addressing a long-standing supply imbalance in the city's development planning.
Before October 2024, Panvel's land use relied on traditional zoning rules without a full TDR system. Unlike faster-growing cities such as Pune and Nagpur, which had established TDR frameworks, Panvel struggled with limited flexibility for infrastructure and real estate projects. This led to negligible TDR generation, creating a bottleneck in development.
The new policy lets developers use up to 75% of the permissible TDR component by paying a premium tied to government land rates. The remaining 25% must still be sourced as TDR. The court ruled that this mechanism is lawful and does not impose an illegal levy or undermine the TDR system.
The policy remains in effect until Panvel's development plan receives official sanction. It does not alter the overall Floor Space Index (FSI) or dismantle the existing TDR framework but offers an extra option for developers. The court dismissed petitions against the policy, stating it corrects distortions in planning rather than acting arbitrarily or unlawfully.
Judges also noted that judicial review of such policies is limited. A regulation cannot be struck down simply because it affects commercial expectations or market value, they clarified.
The ruling confirms the policy's legality and its role in addressing Panvel's planning challenges. Developers now have a temporary but structured way to access TDR while the city awaits its sanctioned development plan. The decision reinforces the government's ability to adjust planning frameworks within statutory limits.
