TDR stands for Transfer of Development Rights. It is a certificate from the Municipal Corporation that the owner of a property gets where his/her property (either part or whole) is reserved for the purpose of public utilities such as road, garden, school etc.
The rights/ certificate, which is equivalent to the reserved portion, is obtained by the owner on surrendering his property to the Municipal Corporation. These rights/ certificate can then be sold to builders who use it for additional construction on their property. Currently in Pune, additional construction of upto 40% of the plot area is allowed through purchase of TDR and a further 20% is allowed through purchase of slum TDR. Slum TDR is generated through redevelopment of slums.