TDR Bonds Not Mandatory Under 2013 Land Acquisition Law; State Must Follow Statutory Compensation Scheme If Acquisition Refused: AP High Court

The Andhra Pradesh High Court has reiterated that Transferable Development Rights (TDR) bonds are not mandatory to be accepted by claimants under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 and upon refusal the State is bound to initiate compensatory proceedings in accordance with the provisions of the 2013 Act.Justice Gannamaneni Ramakrishna Prasad was dealing with a writ petition where the State (Respondents), in order to acquire the petitioners' (claimants') land for road widening, were compelling them to accept TDR bonds, instead of following the procedure prescribed under the 2013 Act, despite specific refusal of the petitioners to accept TDR bonds. The petitioner, through the writ petition, claimed that such an act on part of the State was illegal, arbitrary and violative of Articles 14, 21 and 300-A of the Constitution.Against this backdrop, the Single-Judge held,“… the Respondent Authorities cannot thrust TDR bonds on the claimants/affected parties. TDR bonds are only optional against seeking of compensation under Act No.30 of 2013. TDR bonds are not mandatory but they can be voluntarily accepted by the claimants/affected parties. It is also a settled law that in cases where the claimants or the affected parties who decline to accept TDR bonds, the only option that is available to the Government Authorities is to initiate the Proceedings under Act No.30 of 2013.”The Court also made reference to Section 145 Andhra Pradesh Municipal Corporation Act, 1955— which prescribes the power of the Corporation as to acquisition of property; Section 146 which provides for acquisition of property by agreement; and Section 147 which delineates the procedure when immovable property cannot be acquired by agreement. A collective reading of the three sections make it clear that when the Commissioner is unable to acquire a specific property by agreement, the Government can order initiation of proceedings for acquiring the property for public purposes. Thus, the Court held,“Since the Writ Petitioners have already approached this Court opposing the acceptance of TDR bonds, it is needless to state that the Writ Petitioners are seeking lawful compensation under Act No.30 of 2013.”The Court accordingly allowed the petitions at the admission stage itself, and directed the State to follow the due process of law and acquire the specific property by determining the market price as per the provisions of the 2013 Act.Case Details:Case Number: WRIT PETITION Nos: 5188, 5333 & 5338 of 2026Case Title: KOLLIPALLI SUSMITH KUMAR v. THE STATE OF ANDHRA PRADESHClick Here To Read/Download Order

TDR Bonds Not Mandatory Under 2013 Land Acquisition Law; State Must Follow Statutory Compensation Scheme If Acquisition Refused: AP High Court

Saahas Arora

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