The short answer: the land goes, the development potential stays. Where an owner surrenders land for a road without claiming compensation, Regulation 7.2 lets the Authority permit additional FSI of that area on the same plot.

Key takeaways

  • It covers road widening, a new road proposed under the Development or Regional Plan, and a service road to a National or State Highway, Major District Road or Other District Road, whether shown on the plan or not.
  • The owner, including a lessee, must surrender the land without claiming monetary compensation and hand it over free from encumbrances.
  • The FSI generated is in proportion to the provisions in the TDR regulations.
  • It may be used on the remaining land within the building potential in Tables 6-A, 6-G and 6-H, whichever applies.
  • The owner may take TDR instead of using the FSI on site.
  • The road is then transferred in the city survey record.

The mechanism

Chapter 7, Regulation 7.2, UDCPR as updated 30 January 2025 works in one sentence and a choice.

The Authority may permit on the same plot additional FSI of the area required for road widening, or for construction of a new road proposed under the Development Plan, Regional Plan or planning proposal, and also a service road proposed to a National Highway, State Highway, Major District Road or Other District Road, whether shown on plan or not.

The condition is a clean surrender: the owner, including the lessee, gives up the land without claiming any monetary compensation in lieu of it, and hands it over free from encumbrances to the satisfaction of the Authority.

What the owner choosesWhat happens
Take the FSI on siteFSI generated in proportion to the TDR regulations, used on the remaining land within the building potential in Table 6-A, 6-G or 6-H of Regulations 6.1, 6.3 and 6.4, whichever applies
Take TDR insteadTDR granted against the surrendered land, wherever applicable, to be used as a development right under the TDR regulations

The ceiling on the first option is Chapter 6, Regulation 6.3, Permissible FSI*, whose Table 6-G sets basic FSI, additional FSI on payment of premium and permissible TDR loading by road width. Surrendering land does not lift that ceiling; it generates FSI which then has to fit underneath it, which is why an owner with a plot already at its Table 6-G limit gains nothing on site and should be looking at the TDR option instead.

That table is also one of the most amended in the code, and quoting it from an old copy is a live risk rather than a theoretical one. Table 6-G was substituted by Corrigendum and Addendum No.CR.79/2021 dated 2 December 2021, and a further column for CIDCO as Planning Authority by virtue of NTDA was inserted by Notification under section 37(1AA)(c) No.CR.236/18 (Part 6) dated 12 October 2022. Check the road width band against the current table before modelling the surrender.

What changes the answer

Warning

The words "without claiming any monetary compensation" are the whole condition, and they cut both ways.

An owner cannot pursue compensation for the same land and also take this entitlement. And an owner who has already been compensated is outside it: Regulation 11.2.3 excludes from TDR any case where compensation has already been paid partly or fully by any means, and any case where a valid acquisition award already exists.

There is a third exclusion in the same regulation that catches layouts specifically. Where a layout has already been sanctioned and the layout roads were incorporated into it, TDR is not available for those roads. And Regulation 3.3.11 separately requires internal layout roads to be handed over on demand without compensation. So road land inside a sanctioned layout is in a different position from land surrendered for a Development Plan road.

Why the service road clause matters

The phrase "whether shown on plan or not" appears only for the service road limb, and it is the one that reaches land an owner might not expect to be affected. A service road proposed alongside a highway can bring this regulation into play on a parcel where the Development Plan shows nothing.

That is the same drafting move as Regulation 4.20's defence restrictive zone, which binds whether or not the area is earmarked on the plan. In both cases the map is not the authority.

Where the filings come in

Surrender and compensation are settled between an owner and the Planning Authority, so they do not appear in the RERA register. What the register carries is the filed land area on essentially every project, which is the figure any FSI calculation starts from, along with the buildings and floors actually declared.

Every filing is free to read at reragenie.com. ReraGenie's project analysis, Rs 2,999 for one project, reads the full filing and the documents behind it, and the area consolidated report covers a whole micro-market at Rs 2,999 for the first project and Rs 1,999 per additional one.

Source: Unified Development Control and Promotion Regulations for Maharashtra, UDCPR as updated 30 January 2025. Sanctioned under the Maharashtra Regional and Town Planning Act, 1966.

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