India is one of the fastest urbanizing nations in the world and, while newer urban centers are being developed, it is important to deal with the pressing urban issues in our existing cities. Local Area Plans are an effective planning instrument for such brown-field redevelopment and retrofitting. However, in compact, densified cities, the biggest challenge facing the planning authorities is making land available for public purpose. Land acquisition through monetary compensation proves expensive and time-consuming for the government, and thus, the concept of Transfer of Development Rights was introduced in India. This research aims to understand this mechanism in the context of Mumbai – the history of its inception, various purposes of TDR, legal framework, key stakeholders and the on-ground processes involved – and to assess its success and failure from the perspective of each stakeholder. Further, a set of recommendations are proposed for the regulations and institutional framework.